I 

113TH CONGRESS 

1ST SESSION H. R. 2733 

To prohibit Fannie Mae and Freddie Mac from purchasing, the FHA from 

insuring, and the Department of Agriculture 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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 18, 2013 

Mr. CAMPBELL introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To prohibit Fannie Mae and Freddie Mac from purchasing, 

the FHA from insuring, and the Department of Agriculture 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Defending American 

3 Taxpayers From Abusive Government Takings Act of 

4 2013’’. 

5 SEC. 2. PROHIBITION RELATING TO USE OF POWER OF EMI6 NENT DOMAIN. 

7 (a) FANNIE MAE.—Subsection (b) of section 302 of 

8 the Federal National Mortgage Association Charter Act 

9 (12 U.S.C. 1717(b)) is amended by adding at the end the 

10 following new paragraph: 

11 ‘‘(7)(A) Notwithstanding any other provision of law, 

12 the corporation may not purchase any mortgage that is 

13 secured by a structure or dwelling unit that is located 

14 within a county that contains any structure or dwelling 

15 unit that secures or secured a residential mortgage loan 

16 that the State (or the District of Columbia, the Common17 wealth of Puerto Rico, or any territory or possession of 

18 the United States), including any agency or political sub19 division thereof, obtained during the preceding 120 

20 months by exercise of the power of eminent domain. 

21 ‘‘(B) For purposes of this paragraph, the term ‘resi22 dential mortgage loan’ means a mortgage loan that is evi23 denced by a promissory note and secured by a mortgage, 

24 deed of trust, or other security instrument on a residential 

25 structure or a dwelling unit in a residential structure. 


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1 Such term includes a first mortgage loan or any subordi2 nate mortgage loan.’’. 

3 (b) FREDDIE MAC.—Subsection (a) of section 305 of 

4 the Federal Home Loan Mortgage Corporation Act (12 

5 U.S.C. 1454(a)) is amended by adding at the end the fol6 lowing new paragraph: 

7 ‘‘(6)(A) Notwithstanding any other provision of law, 

8 the Corporation may not purchase any mortgage that is 

9 secured by a structure or dwelling unit that is located 

10 within a county that contains any structure or dwelling 

11 unit that secures or secured a residential mortgage loan 

12 that the State (or the District of Columbia, the Common13 wealth of Puerto Rico, or any territory or possession of 

14 the United States), including any agency or political sub15 division thereof, obtained during the preceding 120 

16 months by exercise of the power of eminent domain. 

17 ‘‘(B) For purposes of this paragraph, the term ‘resi18 dential mortgage loan’ means a mortgage loan that is evi19 denced by a promissory note and secured by a mortgage, 

20 deed of trust, or other security instrument on a residential 

21 structure or a dwelling unit in a residential structure. 

22 Such term includes a first mortgage or any subordinate 

23 mortgage.’’. 


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1 (c) FHA.—Title V of the National Housing Act (12 

2 U.S.C. 1731a et seq.) is amended by adding at the end 

3 the following new section: 

4 ‘‘SEC. 543. PROHIBITION RELATING TO USE OF POWER OF 

5 EMINENT DOMAIN. 

6 ‘‘(a) IN GENERAL.—Notwithstanding any other pro7 vision of law, the Secretary may not newly insure under 

8 this Act any mortgage that is secured by a structure or 

9 dwelling unit that is located within a county that contains 

10 any structure or dwelling unit that secures or secured to 

11 a residential mortgage loan that the State (or the District 

12 of Columbia, the Commonwealth of Puerto Rico, or any 

13 territory or possession of the United States), including any 

14 agency or political subdivision thereof, obtained during the 

15 preceding 120 months by exercise of the power of eminent 

16 domain. 

17 ‘‘(b) DEFINITION.—For purposes of this section, the 

18 term ‘residential mortgage loan’ means a mortgage loan 

19 that is evidenced by a promissory note and secured by a 

20 mortgage, deed of trust, or other security instrument on 

21 a residential structure or a dwelling unit in a residential 

22 structure. Such term includes a first mortgage or any sub23 ordinate mortgage.’’. 


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1 (d) DEPARTMENT OF AGRICULTURE.—Section 501 of 

2 the Housing Act of 1949 (42 U.S.C. 1471) is amended 

3 by adding at the end the following new subsection: 

4 ‘‘(k) PROHIBITION RELATING TO USE OF POWER OF

5 EMINENT DOMAIN.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding any other 

7 provision of law, the Secretary may not newly guar8 antee, make, or insure under this title any mortgage 

9 that is secured by a structure or dwelling unit that 

10 is located within a county that contains any struc11 ture or dwelling unit that secures or secured to a 

12 residential mortgage loan that the State (as such 

13 term is defined in section 502(h)(12)), including any 

14 agency or political subdivision thereof, obtained dur15 ing the preceding 120 months by exercise of the 

16 power of eminent domain. 

17 ‘‘(2) DEFINITION.—For purposes of this sub18 section, the term ‘residential mortgage loan’ means 

19 a mortgage loan that is evidenced by a promissory 

20 note and secured by a mortgage, deed of trust, or 

21 other security instrument on a residential structure 

22 or a dwelling unit in a residential structure. Such 

23 term includes a first mortgage or any subordinate 

24 mortgage.’’. 

Æ 


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