II 

118TH CONGRESS 

1ST SESSION S. 2687 

To provide additional requirements for the purchase and sale of conventional 

mortgages by the enterprises, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2023 

Mr. KENNEDY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide additional requirements for the purchase and 

sale of conventional mortgages by the 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 ‘‘Protecting America’s 

5 Property Rights Act’’. 

6 SEC. 2. FANNIE MAE CHARTER AMENDMENTS. 

7 (a) PURCHASE AND SALE OF CONVENTIONAL MORT8 GAGES.—Section 302(b)(2) of the Federal National Mort9 gage Association Charter Act (12 U.S.C. 1717(b)(2)) is 

10 amended by inserting ‘‘No such purchase of a conventional 


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1 mortgage secured by a property comprising one- to four2 family dwelling units shall be made unless the mortgage 

3 is secured by real property and the priority of the lien 

4 of the mortgage is insured by a title insurance company 

5 licensed and authorized to do business in the State, terri6 tory, or district in which the property securing the mort7 gage is located.’’ after the first sentence. 

8 (b) APPROVAL OF NEW ACTIVITIES AND RISK.—Sec9 tion 302(b)(6) of the Federal National Mortgage Associa10 tion Charter Act (12 U.S.C. 1717(b)(6)) is amended to 

11 read as follows: 

12 ‘‘(6) PRIOR APPROVAL OF DIRECTOR AND SEC13 RETARY FOR NEW PROGRAMS.— 

14 ‘‘(A) IN GENERAL.—The corporation may 

15 not implement any new program, activity, prod16 uct, or type of risk unless the corporation first 

17 obtains the approval of the Director of the Fed18 eral Housing Finance Agency and the Secretary 

19 of the Treasury. 

20 ‘‘(B) HEARINGS.—The Director of the 

21 Federal Housing Finance Agency shall appear 

22 before the Committee on Banking, Housing, 

23 and Urban Affairs of the Senate and the Com24 mittee on Financial Services of the House of 

25 Representatives on a semi-annual basis regardVerDate Sep 11 2014 04:56 Aug 19, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2687.IS S2687

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1 ing any new program, activity, product, or type 

2 of risk approved under subparagraph (A).’’. 

3 (c) SECONDARY MARKET OPERATIONS.—Section 

4 304(a) of the Federal National Mortgage Association 

5 Charter Act (12 U.S.C. 1719(a)) is amended— 

6 (1) in paragraph (1), in the first sentence, by 

7 inserting ‘‘and for which the priority of the lien of 

8 the mortgage is insured by a title insurance compa9 nies licensed and authorized to do business in the 

10 State, territory, or district in which the property se11 curing the mortgage is located’’ before the period at 

12 the end; and 

13 (2) in paragraph (2), in the second sentence, by 

14 striking ‘‘or (B) to originate mortgage loans’’ and 

15 inserting ‘‘(B) to originate mortgage loans; or (C) to 

16 purchase mortgages for which the priority of the lien 

17 of the mortgage is insured by a title insurance com18 pany licensed and authorized to do business in the 

19 State, territory, or district in which the property se20 curing the mortgage is located’’. 

21 SEC. 3. FREDDIE MAC CHARTER AMENDMENTS. 

22 (a) PURCHASE AND SALE OF CONVENTIONAL MORT23 GAGES.—Section 305(a)(2) of the Federal Home Loan 

24 Corporation Act (12 U.S.C. 1454(a)(2)) is amended by 

25 inserting ‘‘The Corporation may not purchase a convenVerDate Sep 11 2014 04:56 Aug 19, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2687.IS S2687

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1 tional mortgage secured by a property comprising one- to 

2 four-family dwelling units unless the mortgage is secured 

3 by real property and the priority of the lien of the mort4 gage is insured by a title insurance company licensed and 

5 authorized to do business in the State in which the prop6 erty securing the mortgage is located.’’ after the second 

7 sentence. 

8 (b) APPROVAL OF NEW ACTIVITIES AND RISK.—Sec9 tion 305(c) of the Federal Home Loan Corporation Act 

10 (12 U.S.C. 1454(c)) is amended to read as follows: 

11 ‘‘(c) PRIOR APPROVAL OF DIRECTOR AND SEC12 RETARY FOR NEW PROGRAMS.— 

13 ‘‘(1) IN GENERAL.—The Corporation may not 

14 implement any new program, activity, product, or 

15 type of risk unless the Corporation first obtains the 

16 approval of the Director of the Federal Housing Fi17 nance Agency and the Secretary of the Treasury. 

18 ‘‘(2) HEARINGS.—The Director of the Federal 

19 Housing Finance Agency shall appear before the 

20 Committee on Banking, Housing, and Urban Affairs 

21 of the Senate and the Committee on Financial Serv22 ices of the House of Representatives on a semi-an23 nual basis regarding any new program, activity, 

24 product, or type of risk approved under paragraph 

25 (1).’’. 


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1 (c) SECONDARY MARKET OPERATIONS.—Section 

2 305(a) of the Federal Home Loan Corporation Act (12 

3 U.S.C. 1454(a)) is amended— 

4 (1) in paragraph (1), in the first sentence, by 

5 inserting ‘‘for which the priority of the lien of the 

6 mortgage is insured by a title insurance companies 

7 licensed and authorized to do business in the State 

8 in which the property securing the mortgage is lo9 cated’’ before the period at the end; and 

10 (2) in paragraph (5), in the third sentence, by 

11 striking ‘‘or (B) to originate mortgage loans’’ and 

12 inserting ‘‘(B) to originate mortgage loans; or (C) to 

13 purchase mortgages for which the priority of the lien 

14 of the mortgage is insured by a title insurance com15 pany licensed and authorized to do business in the 

16 State in which the property securing the mortgage 

17 is located’’. 

18 SEC. 4. DEFINITION OF CONFORMING MORTGAGE. 

19 Section 1303(26) of the Federal Housing Enterprises 

20 Financial Safety and Soundness Act of 1992 (12 U.S.C. 

21 4502(26) is amended— 

22 (1) by redesignating subparagraphs (A) and 

23 (B) as clauses (i) and (ii), respectively, and adjust24 ing the margins accordingly; 


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1 (2) by striking ‘‘mortgage having’’ and insert2 ing ‘‘mortgage— 

3 ‘‘(A) having’’; 

4 (3) in subparagraph (A)(ii), as so redesignated, 

5 by striking the period at the end and inserting ‘‘; 

6 and’’; and 

7 (4) by adding at the end the following: 

8 ‘‘(B) for which the priority of the lien of 

9 the mortgage is insured by a title insurance 

10 company licensed and authorized to do business 

11 in the State in which the property securing the 

12 mortgage is located.’’. 

Æ 


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