I 

108TH CONGRESS 

1ST SESSION H. R. 2022

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

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2003

Mr. SHAYS (for himself and Mr. MARKEY) 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Leave No Securities 

5 Behind Act’’. 

6 SEC. 2. REGISTRATION OF SECURITIES. 

7 (a) FANNIE MAE.—
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1 (1) MORTGAGE-BACKED SECURITIES.—Section 

2 304(d) of the Federal National Mortgage Associa3 tion Charter Act (12 U.S.C. 1719(d)) is amended by 

4 striking the fourth sentence and inserting the fol5 lowing new sentence: ‘‘Securities issued by the cor6 poration under this subsection shall not be exempt 

7 securities within the meaning of the laws adminis8 tered by the Securities and Exchange Commission.’’

9 (2) SUBORDINATE OBLIGATIONS.—Section 

10 304(e) of the Federal National Mortgage Association 

11 Charter Act (12 U.S.C. 1719(e)) is amended by 

12 striking the fourth sentence and inserting the fol13 lowing new sentence: ‘‘Obligations issued by the cor14 poration under this subsection shall not be exempt 

15 securities within the meaning of the laws adminis16 tered by the Securities and Exchange Commission.’’

17 (3) SECURITIES.—Section 311 of the Federal 

18 National Mortgage Association Charter Act (12 

19 U.S.C. 1723c) is amended—

20 (A) in the section header, by striking ‘‘AS21 SOCIATION’’; 

22 (B) by inserting ‘‘(a) IN GENERAL.—’’ 

23 after ‘‘SEC. 311.’’; 

24 (C) in the second sentence, by inserting 

25 ‘‘by the Association’’ after ‘‘issued’’; and 
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1 (D) by adding at the end the following new 

2 subsection: 

3 ‘‘(b) TREATMENT OF CORPORATION SECURITIES.—

4 ‘‘(1) IN GENERAL.—Any stock, obligations, se5 curities, participations, or other instruments issued 

6 or guaranteed by the corporation pursuant to this 

7 title shall not be exempt securities within the mean8 ing of the laws administered by the Securities and 

9 Exchange Commission. 

10 ‘‘(2) EXEMPTION FOR APPROVED SELLERS.—

11 Notwithstanding any other provision of this title or 

12 the Securities Act of 1933, transactions involving 

13 the initial disposition by an approved seller of pooled 

14 certificates that are acquired by that seller from the 

15 corporation upon the initial issuance of the pooled 

16 certificates shall be deemed to be transactions by a 

17 person other than an issuer, underwriter, or dealer 

18 within the meaning of the laws administered by the 

19 Securities and Exchange Commission. 

20 ‘‘(3) DEFINITIONS.—For purposes of this sub21 section: 

22 ‘‘(A) APPROVED SELLER.—The term ‘ap23 proved seller’ means an institution approved by 

24 the corporation to sell mortgage loans to the 

25 corporation in exchange for pooled certificates. 
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1 ‘‘(B) POOLED CERTIFICATES.—The term 

2 ‘pooled certificates’ means single class mort3 gage-backed securities guaranteed by the cor4 poration that have been issued by the corpora5 tion directly to the approved seller in exchange 

6 for the mortgage loans underlying such mort7 gage-backed securities. 

8 ‘‘(4) MORTGAGE RELATED SECURITIES.—A sin9 gle class mortgage-backed security guaranteed by 

10 the corporation that has been issued by the Corpora11 tion directly to the approved seller in exchange for 

12 the mortgage loans underlying such mortgage13 backed securities or directly by the corporation for 

14 cash shall be deemed to be a mortgage related secu15 rity as defined in section 3(a) of the Securities Ex16 change Act of 1934.’’. 

17 (b) FREDDIE MAC.—Subsection (g) of section 306 of 

18 the Federal Home Loan Mortgage Corporation Act (12 

19 U.S.C. 1455(g)) is amended to read as follows: 

20 ‘‘(g) TREATMENT OF SECURITIES.—

21 ‘‘(1) IN GENERAL.—Any securities issued or 

22 guaranteed by the Corporation shall not be exempt 

23 securities within the meaning of the laws adminis24 tered by the Securities and Exchange Commission.’’. 
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1 ‘‘(2) EXEMPTION FOR APPROVED SELLERS.—

2 Notwithstanding any other provision of this title or 

3 the Securities Act of 1933, transactions involving 

4 the initial disposition by an approved seller of pooled 

5 certificates that are acquired by that seller from the 

6 Corporation upon the initial issuance of the pooled 

7 certificates shall be deemed to be transactions by a 

8 person other than as an issuer, underwriter, or deal9 er within the meaning of the laws administered by 

10 the Securities and Exchange Commission. 

11 ‘‘(3) DEFINITIONS.—For purposes of this sub12 section: 

13 ‘‘(A) APPROVED SELLER.—The term ‘ap14 proved seller’ means an institution approved by 

15 the Corporation to sell mortgage loans to the 

16 Corporation in exchange for pooled certificates. 

17 ‘‘(B) POOLED CERTIFICATES.—The term 

18 ‘pooled certificates’ means single class mort19 gage-backed securities guaranteed by the Cor20 poration that have been issued by the Corpora21 tion directly to the approved seller in exchange 

22 for the mortgage loans underlying such mort23 gage-backed securities.’’. 

24 (c) REGULATIONS.—The Securities and Exchange 

25 Commission may issue any regulations as may be nec-
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1 essary or appropriate to carry out the purposes of this 

2 section and the amendments made by this section. 

3 (d) EFFECTIVE DATE.—The amendments under this 

4 section shall be made upon the expiration of the 180-day 

5 period beginning on the date of the enactment of this Act, 

6 but shall apply only with respect to fiscal years of the Fed7 eral National Mortgage Association and the Federal Home 

8 Loan Mortgage Corporation that begin after the expira9 tion of such 180-day period. 

10 SEC. 3. LIMITATION ON REGISTRATION FEES. 

11 (a) IN GENERAL.—Section 6(b)(2) of the Securities 

12 Act of 1933 (15 U.S.C. 77f(b)(2)) is amended by adding 

13 at the end the following new sentence: ‘‘Notwithstanding 

14 any other provision of this title, no applicant, or group 

15 of affiliated applicants that do not include any investment 

16 company registered under the Investment Company Act 

17 of 1940, filing a registration statement subject to a fee 

18 shall be required in any fiscal year with respect to all reg19 istration statements filed by such applicant in such fiscal 

20 year to pay an aggregate amount in fees to the Commis21 sion pursuant to subsection (b) in excess of five percent 

22 of the target offsetting collection amount for such fiscal 

23 year. Fees paid in connection with registration statements 

24 relating to business combinations shall not be included in 

25 calculating the total fees paid by any applicant.’’. 
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1 (b) EFFECTIVE DATE.—The amendment under sub2 section (a) shall be made and shall apply upon the expira3 tion of the 180-day period beginning on the date of the 

4 enactment of this Act.

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