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.

Summary: Defending American Taxpayers From Abusive Government Takings Act of 2012 - Amends the Federal National Mortgage Association Charter Act to prohibit the Federal National Mortgage Association (Fannie Mae) from purchasing any mortgage secured by a structure or dwelling unit located within a county that contains any structure or dwelling unit that secures or secured a residential mortgage loan that the state or any territory, including any agency or political subdivision, obtained during the preceding 120 months by eminent domain.

Amends the Federal Home Loan Mortgage Corporation Act to prohibit the Federal Home Loan Mortgage Corporation (Freddie Mac) from doing the same.

Amends the National Housing Act to prohibit the Secretary of Housing and Urban Development (HUD) from newly insuring any mortgage secured by a structure or dwelling unit located in such a county.

Prohibits the Secretary from guaranteeing, making, or insuring a housing or small business loan for a residence located in such a county.

SECTION 1. SHORT TITLE.

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

SEC. 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.''.
    (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.''.
    (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:

``SEC. 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.''.
    (d) VA.--
            (1) In general.--Chapter 37 of title 38, United States 
        Code, is amended by adding after section 3736 the following new 
        section:

``SEC. 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.''.
            (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.''.