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H.R. 6397 (112th): Defending American Taxpayers From Abusive Government Takings Act of 2012


The text of the bill below is as of Sep 13, 2012 (Introduced).


I

112th CONGRESS

2d Session

H. R. 6397

IN THE HOUSE OF REPRESENTATIVES

September 13, 2012

introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To prohibit Fannie Mae and Freddie Mac from purchasing, the FHA from insuring, and the Department of Veterans Affairs from guaranteeing, making, or insuring, a mortgage that is secured by a residence or residential structure located in a county in which the State has used the power of eminent domain to take a residential mortgage.

1.

Short title

This Act may be cited as the Defending American Taxpayers From Abusive Government Takings Act of 2012.

2.

Prohibition relating to use of power of eminent domain

(a)

Fannie Mae

Subsection (b) of section 302 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following new paragraph:

(7)
(A)

Notwithstanding any other provision of law, the corporation may not purchase any mortgage that is secured by a structure or dwelling unit that is located within a county that contains any structure or dwelling unit that secures or secured a residential mortgage loan that the State (or the District of Columbia, the Commonwealth or Puerto Rico, or any territory or possession of the United States), including any agency or political subdivision thereof, obtained during the preceding 120 months by exercise of the power of eminent domain.

(B)

For purposes of this paragraph, the term residential mortgage loan means a mortgage loan that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a residential structure or a dwelling unit in a residential structure. Such term includes a first mortgage loan or any subordinate mortgage loan.

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(b)

Freddie Mac

Subsection (a) of section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following new paragraph:

(6)
(A)

Notwithstanding any other provision of law, the Corporation may not purchase any mortgage that is secured by a structure or dwelling unit that is located within a county that contains any structure or dwelling unit that secures or secured a residential mortgage loan that the State (or the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States), including any agency or political subdivision thereof, obtained during the preceding 120 months by exercise of the power of eminent domain.

(B)

For purposes of this paragraph, the term residential mortgage loan means a mortgage loan that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a residential structure or a dwelling unit in a residential structure. Such term includes a first mortgage or any subordinate mortgage.

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(c)

FHA

Title V of the National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding at the end the following new section:

543.

Prohibition relating to use of power of eminent domain

(a)

In general

Notwithstanding any other provision of law, the Secretary may not newly insure under this Act any mortgage that is secured by a structure or dwelling unit that is located within a county that contains any structure or dwelling unit that secures or secured to a residential mortgage loan that the State (or the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States), including any agency or political subdivision thereof, obtained during the preceding 120 months by exercise of the power of eminent domain.

(b)

Definition

For purposes of this paragraph, the term residential mortgage loan means a mortgage loan that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a residential structure or a dwelling unit in a residential structure. Such term includes a first mortgage or any subordinate mortgage.

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(d)

VA

(1)

In general

Chapter 37 of title 38, United States Code, is amended by adding after section 3736 the following new section:

3737.

Prohibition relating to use of power of eminent domain

(a)

Prohibition

The Secretary may not guarantee, make, or insure a loan under this chapter if such loan is for a residence that is located within a county (or trust land with respect to a loan under subchapter V) that contains any residence that secures or secured a residential mortgage loan that the State, including any agency or political subdivision thereof, obtained during the preceding 120 months by exercise of the power of eminent domain.

(b)

Definitions

In this section:

(1)

The term residential mortgage loan means a mortgage loan that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a residential structure or a dwelling unit in a residential structure. Such term includes a first mortgage or any subordinate mortgage.

(2)

The term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, and each federally recognized Indian tribe.

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(2)

Clerical amendment

The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3736 the following new item:

3737. Prohibition relating to use of power of eminent domain.

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