Protecting America's Property Rights Act

To provide additional requirements for the purchase and sale of conventional mortgages by the enterprises, and for other purposes. 1. Short title This Act may be cited as the Protecting America's Property Rights Act 2. Fannie Mae charter amendments (a) Purchase and sale of conventional mortgages Section 302(b)(2) of the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1717(b)(2) No such purchase of a conventional mortgage secured by a property comprising one- to four-family dwelling units shall be made unless the mortgage is secured by real property and the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located. (b) Approval of new activities and risk Section 302(b)(6) of the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1717(b)(6) (6) Prior approval of Director and Secretary for new programs (A) In general The corporation may not implement any new program, activity, product, or type of risk unless the corporation first obtains the approval of the Director of the Federal Housing Finance Agency and the Secretary of the Treasury. (B) Hearings The Director of the Federal Housing Finance Agency shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on a semi-annual basis regarding any new program, activity, product, or type of risk approved under subparagraph (A). . (c) Secondary market operations Section 304(a) of the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1719(a) (1) in paragraph (1), in the first sentence, by inserting and for which the priority of the lien of the mortgage is insured by a title insurance companies licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located (2) in paragraph (2), in the second sentence, by striking or (B) to originate mortgage loans (B) to originate mortgage loans; or (C) to purchase mortgages for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State, territory, or district in which the property securing the mortgage is located 3. Freddie Mac charter amendments (a) Purchase and sale of conventional mortgages Section 305(a)(2) of the Federal Home Loan Corporation Act ( 12 U.S.C. 1454(a)(2) The Corporation may not purchase a conventional mortgage secured by a property comprising one- to four-family dwelling units unless the mortgage is secured by real property and the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located. (b) Approval of new activities and risk Section 305(c) of the Federal Home Loan Corporation Act ( 12 U.S.C. 1454(c) (c) Prior approval of Director and Secretary for new programs (1) In general The Corporation may not implement any new program, activity, product, or type of risk unless the Corporation first obtains the approval of the Director of the Federal Housing Finance Agency and the Secretary of the Treasury. (2) Hearings The Director of the Federal Housing Finance Agency shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on a semi-annual basis regarding any new program, activity, product, or type of risk approved under paragraph (1). . (c) Secondary market operations Section 305(a) of the Federal Home Loan Corporation Act ( 12 U.S.C. 1454(a) (1) in paragraph (1), in the first sentence, by inserting for which the priority of the lien of the mortgage is insured by a title insurance companies licensed and authorized to do business in the State in which the property securing the mortgage is located (2) in paragraph (5), in the third sentence, by striking or (B) to originate mortgage loans (B) to originate mortgage loans; or (C) to purchase mortgages for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located 4. Definition of conforming mortgage Section 1303(26) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4502(26) (1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly; (2) by striking mortgage having mortgage— (A) having ; (3) in subparagraph (A)(ii), as so redesignated, by striking the period at the end and inserting ; and (4) by adding at the end the following: (B) for which the priority of the lien of the mortgage is insured by a title insurance company licensed and authorized to do business in the State in which the property securing the mortgage is located. .

Summary: Protecting America's Property Rights ActThis bill requires title insurance on conventional mortgages purchased by Fannie Mae and Freddie Mac. Specifically, these mortgages must be secured by real property and the priority of the mortgage lien must be insured by a title insurance company that is licensed and authorized to do business in the appropriate state, territory, or district.The bill also prohibits Fannie Mae and Freddie Mac from implementing any new program without the approval of the Federal Housing Finance Agency (FHFA), in addition to the approval of the Department of the Treasury as under current law. Approval from both is also required for any new activity, product, or type of risk.FHFA must appear before Congress on a semiannual basis regarding new programs, activities, products, or types of risk. &nbsp;