H.R. 1353 (111th): Fannie Mae and Freddie Mac Full Disclosure Act

111th Congress, 2009–2010. Text as of Mar 05, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 1353

IN THE HOUSE OF REPRESENTATIVES

March 5, 2009

(for himself and Mr. Markey of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To extend the registration and reporting requirements of the Federal securities laws to certain housing-related Government-sponsored enterprises, and for other purposes.

1.

Short title

This Act may be cited as the Fannie Mae and Freddie Mac Full Disclosure Act .

2.

Registration of Securities

(a)

Fannie Mae

(1)

Mortgage-backed securities

Section 304(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(d)) is amended by striking the fourth sentence and inserting the following new sentence: Securities issued by the corporation under this subsection shall not be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.

(2)

Subordinate obligations

Section 304(e) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(e)) is amended by striking the fourth sentence and inserting the following new sentence: Obligations issued by the corporation under this subsection shall not be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.

(3)

Securities

Section 311 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723c) is amended—

(A)

in the section header, by striking association;

(B)

by inserting (a) In General.— after Sec. 311.;

(C)

in the second sentence, by inserting by the Association after issued; and

(D)

by adding at the end the following new subsection:

(b)

Treatment of Corporation Securities

(1)

In general

Any stock, obligations, securities, participations, or other instruments issued or guaranteed by the corporation pursuant to this title shall not be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.

(2)

Exemption for approved sellers

Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than an issuer, underwriter, or dealer within the meaning of the laws administered by the Securities and Exchange Commission.

(3)

Definitions

For purposes of this subsection:

(A)

Approved seller

The term approved seller means an institution approved by the corporation to sell mortgage loans to the corporation in exchange for pooled certificates.

(B)

Pooled certificates

The term pooled certificates means single class mortgage-backed securities guaranteed by the corporation that have been issued by the corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.

(4)

Mortgage related securities

A single class mortgage-backed security guaranteed by the corporation that has been issued by the Corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities or directly by the corporation for cash shall be deemed to be a mortgage related security as defined in section 3(a) of the Securities Exchange Act of 1934.

.

(b)

Freddie Mac

Subsection (g) of section 306 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(g)) is amended to read as follows:

(g)

Treatment of Securities

(1)

In general

Any securities issued or guaranteed by the Corporation shall not be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.

.

(2)

Exemption for approved sellers

Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the Corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than as an issuer, underwriter, or dealer within the meaning of the laws administered by the Securities and Exchange Commission.

(3)

Definitions

For purposes of this subsection:

(A)

Approved seller

The term approved seller means an institution approved by the Corporation to sell mortgage loans to the Corporation in exchange for pooled certificates.

(B)

Pooled certificates

The term pooled certificates means single class mortgage-backed securities guaranteed by the Corporation that have been issued by the Corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.

.

(c)

Regulations

The Securities and Exchange Commission may issue any regulations as may be necessary or appropriate to carry out the purposes of this section and the amendments made by this section.

(d)

Effective Date

The amendments under this section shall be made upon the expiration of the 180-day period beginning on the date of the enactment of this Act, but shall apply only with respect to fiscal years of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation that begin after the expiration of such 180-day period.

3.

Limitation on registration fees

(a)

In General

Section 6(b)(2) of the Securities Act of 1933 (15 U.S.C. 77f(b)(2)) is amended by adding at the end the following new sentence: Notwithstanding any other provision of this title, no applicant, or group of affiliated applicants that do not include any investment company registered under the Investment Company Act of 1940, filing a registration statement subject to a fee shall be required in any fiscal year with respect to all registration statements filed by such applicant in such fiscal year to pay an aggregate amount in fees to the Commission pursuant to subsection (b) in excess of five percent of the target offsetting collection amount for such fiscal year. Fees paid in connection with registration statements relating to business combinations shall not be included in calculating the total fees paid by any applicant..

(b)

Effective Date

The amendment under subsection (a) shall be made and shall apply upon the expiration of the 180-day period beginning on the date of the enactment of this Act.