I 

112TH CONGRESS 

1ST SESSION H. R. 1223 

To amend the Securities Exchange Act of 1934 to ensure mortgages held 

or securitized by Fannie Mae and Freddie Mac and asset-backed securities issued by such enterprises are treated similarly as other mortgages 

and asset-backed securities for purposes of the credit risk retention 

requirements under such Act. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2011 

Mr. GARRETT (for himself, Mr. BACHUS, Mr. HENSARLING, and Mr. PEARCE) 

introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Securities Exchange Act of 1934 to ensure 

mortgages held or securitized by Fannie Mae and 

Freddie Mac and asset-backed securities issued by such 

enterprises are treated similarly as other mortgages and 

asset-backed securities for purposes of the credit risk 

retention requirements under such Act. 

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 ‘‘GSE Credit Risk Equi5 table Treatment Act of 2011’’. 


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•HR 1223 IH

1 SEC. 2. EQUITABLE TREATMENT OF FANNIE MAE AND 

2 FREDDIE MAC UNDER CREDIT RISK RETEN3 TION REQUIREMENTS. 

4 (a) IN GENERAL.—Section 15G of the Securities Ex5 change Act of 1934 (15 U.S.C. 78o–11) is amended— 

6 (1) in subsection (c)(1)— 

7 (A) in subparagraph (F), by striking 

8 ‘‘and’’ at the end; 

9 (B) in subparagraph (G), by striking the 

10 period at the end and inserting ‘‘; and’’; and 

11 (C) by adding at the end the following new 

12 subparagraph: 

13 ‘‘(H) provide for no difference in the treat14 ment of an asset-backed security securitized by 

15 the Federal National Mortgage Association or 

16 the Federal Home Loan Mortgage Corporation, 

17 solely because of securitization by such enter18 prise, from the treatment of asset-backed secu19 rities securitized by any other entity.’’; and 

20 (2) in subsection (e)— 

21 (A) by redesignating paragraph (6) as 

22 paragraph (7); and 

23 (B) by inserting after paragraph (5) the 

24 following new paragraph: 

25 ‘‘(6) MORTGAGES OF FANNIE MAE AND

26 FREDDIE MAC.—The regulations issued under paraVerDate Mar 15 2010 03:15 Mar 30, 2011 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1223.IH H1223

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•HR 1223 IH

1 graph (4) shall provide that the purchase, holding, 

2 or securitization of any mortgage by the Federal Na3 tional Mortgage Association or the Federal Home 

4 Loan Mortgage Corporation shall not solely of itself 

5 have any effect on whether such mortgage qualifies 

6 as a qualified residential mortgage under such para7 graph.’’. 

8 (b) REGULATIONS.—Not later than 90 days after the 

9 date of the enactment of this Act, the Federal banking 

10 agencies (as such term is defined in section 15G(a) of the 

11 Securities Exchange Act of 1934 (15 U.S.C. 78o–11(a)), 

12 the Securities and Exchange Commission, the Secretary 

13 of Housing and Urban Development, and the Director of 

14 the Federal Housing Finance Agency, shall jointly issue 

15 regulations to carry out subsections (c)(1)(H) and (e)(6) 

16 of section 15G of the Securities Exchange Act of 1934, 

17 as added by the amendments made by subsection (a) of 

18 this section. 

Æ 


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