I 

118TH CONGRESS 

1ST SESSION H. R. 5837 

To provide additional requirements for the purchase and sale of conventional 

mortgages by the enterprises, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2023 

Mr. GARBARINO (for himself and Mr. VICENTE GONZALEZ of Texas) introduced the following bill; which was referred to the Committee on Financial Services 

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 


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

2 mortgage secured by a property comprising one- to four3 family dwelling units shall be made unless the mortgage 

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

5 of the mortgage is insured by a title insurance company 

6 licensed and authorized to do business in the State, terri7 tory, or district in which the property securing the mort8 gage is located.’’ after the first sentence. 

9 (b) APPROVAL OF NEW ACTIVITIES AND RISK.—Sec10 tion 302(b)(6) of the Federal National Mortgage Associa11 tion Charter Act (12 U.S.C. 1717(b)(6)) is amended to 

12 read as follows: 

13 ‘‘(6) PRIOR APPROVAL OF DIRECTOR AND SEC14 RETARY FOR NEW PROGRAMS.— 

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

16 not implement any new program, activity, prod17 uct, or type of risk unless the corporation first 

18 obtains the approval of the Director of the Fed19 eral Housing Finance Agency and the Secretary 

20 of the Treasury. 

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

22 Federal Housing Finance Agency shall appear 

23 before the Committee on Banking, Housing, 

24 and Urban Affairs of the Senate and the Com25 mittee on Financial Services of the House of 


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1 Representatives on a semi-annual basis regard2 ing any new program, activity, product, or type 

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

4 (c) SECONDARY MARKET OPERATIONS.—Section 

5 304(a) of the Federal National Mortgage Association 

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

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

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

9 the mortgage is insured by a title insurance compa10 nies licensed and authorized to do business in the 

11 State, territory, or district in which the property se12 curing the mortgage is located’’ before the period at 

13 the end; and 

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

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

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

17 purchase mortgages for which the priority of the lien 

18 of the mortgage is insured by a title insurance com19 pany licensed and authorized to do business in the 

20 State, territory, or district in which the property se21 curing the mortgage is located’’. 

22 SEC. 3. FREDDIE MAC CHARTER AMENDMENTS. 

23 (a) PURCHASE AND SALE OF CONVENTIONAL MORT24 GAGES.—Section 305(a)(2) of the Federal Home Loan 

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


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1 inserting ‘‘The Corporation may not purchase a conven2 tional mortgage secured by a property comprising one- to 

3 four-family dwelling units unless the mortgage is secured 

4 by real property and the priority of the lien of the mort5 gage is insured by a title insurance company licensed and 

6 authorized to do business in the State in which the prop7 erty securing the mortgage is located.’’ after the second 

8 sentence. 

9 (b) APPROVAL OF NEW ACTIVITIES AND RISK.—Sec10 tion 305(c) of the Federal Home Loan Corporation Act 

11 (12 U.S.C. 1454(c)) is amended to read as follows: 

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

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

15 implement any new program, activity, product, or 

16 type of risk unless the Corporation first obtains the 

17 approval of the Director of the Federal Housing Fi18 nance Agency and the Secretary of the Treasury. 

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

20 Housing Finance Agency shall appear before the 

21 Committee on Banking, Housing, and Urban Affairs 

22 of the Senate and the Committee on Financial Serv23 ices of the House of Representatives on a semi-an24 nual basis regarding any new program, activity, 


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1 product, or type of risk approved under paragraph 

2 (1).’’. 

3 (c) SECONDARY MARKET OPERATIONS.—Section 

4 305(a) of the Federal Home Loan Corporation Act (12 

5 U.S.C. 1454(a)) is amended— 

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

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

8 mortgage is insured by a title insurance companies 

9 licensed and authorized to do business in the State 

10 in which the property securing the mortgage is lo11 cated’’ before the period at the end; and 

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

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

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

15 purchase mortgages for which the priority of the lien 

16 of the mortgage is insured by a title insurance com17 pany licensed and authorized to do business in the 

18 State in which the property securing the mortgage 

19 is located’’. 

20 SEC. 4. DEFINITION OF CONFORMING MORTGAGE. 

21 Section 1303(26) of the Federal Housing Enterprises 

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

23 4502(26)) is amended— 


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1 (1) by redesignating subparagraphs (A) and 

2 (B) as clauses (i) and (ii), respectively, and adjust3 ing the margins accordingly; 

4 (2) by striking ‘‘mortgage having’’ and insert5 ing ‘‘mortgage— 

6 ‘‘(A) having’’; 

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

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

9 and’’; and 

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

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

12 the mortgage is insured by a title insurance 

13 company licensed and authorized to do business 

14 in the State in which the property securing the 

15 mortgage is located.’’. 

Æ 


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