132 
the FHA Reform and Modernization Act 
of 2013)’’; and 
(C) in subsection (f)— 
(i) in paragraph (1)— 
(I) by striking ‘‘existing hospital 
(or’’; and 
(II) by striking ‘‘thereof)’’ and 
inserting ‘‘thereof’’; and 
(ii) in paragraph (4)— 
(I) in the matter preceding sub-
paragraph (A), by striking ‘‘existing 
hospital (or’’; 
(II) in the matter preceding sub-
paragraph (A), by striking ‘‘thereof)’’ 
and inserting ‘‘thereof,’’; 
(III) in subparagraphs (A), (B), 
and (C)— 
(aa) by striking ‘‘existing 
hospital (or’’ each place such 
term appears; and 
(bb) by striking ‘‘thereof)’’ 
each place such term appears 
and inserting ‘‘thereof’’; and 
(IV) in subparagraph (D), by 
striking ‘‘or of section 242 (for the 
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133 
existing hospital proposed to be refi-
nanced)’’. 
(3) Section 541(a) (12 U.S.C. 1735f–19(a)) is 
amended by inserting after ‘‘section 242 of this Act’’ 
the following: ‘‘, as such section was in effect imme-
diately before the effective date under section 292(a) 
of the FHA Reform and Modernization Act of 
2013’’. 
(c) SAVINGS PROVISIONS.— 
(1) EFFECT OF REPEALS.—The repeals under 
subsection (a) shall not affect any legally binding ob-
ligations entered before the effective date of such re-
peals. 
(2) INSURANCE AUTHORITY.—Notwithstanding 
the repeals under subsection (a), the Secretary (or 
the FHA, pursuant to subtitle D of this title) may 
insure any mortgage for which a commitment to in-
sure under section 242 or 255 of the National Hous-
ing Act was made before the expiration of the period 
referred to in subsection (a). Any such mortgage in-
sured under such section 242 or 255 shall be subject 
to the terms of such section as in effect immediately 
before the expiration of such period. 
(3) SAVINGS PROVISION.—Any funds or activi-
ties subject, before the effective date of the repeals 
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134 
under subsection (a) of this section, to section 242 
or 255 of the National Housing Act shall continue 
to be governed by such sections as in effect imme-
diately before such effective date. 
SEC. 293. CONFORMING AMENDMENTS. 
(a) PENALTIES FOR EQUITY SKIMMING.—Paragraph 
(1) of section 912 of the Housing and Urban Development 
Act of 1970 (12 U.S.C. 1709–2(1)) is amended by insert-
ing ‘‘or Federal Housing Administration’’ after ‘‘Housing 
and Urban Development’’. 
(b) FRAUDULENTLY MISAPPROPRIATED MORTGAGE 
PROCEEDS.—Section 819 of the Housing and Community 
Development Act of 1974 (12 U.S.C. 1701l–1) is amend-
ed— 
(1) by inserting ‘‘or the Federal Housing Ad-
ministration’’ after ‘‘Secretary of Housing and 
Urban Development’’; and 
(2) by inserting ‘‘or such Administration, as ap-
propriate,’’ before ‘‘has reason’’. 
(c) UNAUTHORIZED USE OF MULTIFAMILY HOUSING 
ASSETS AND INCOME.—Section 421 of the Housing and 
Community Development Act of 1987 (12 U.S.C. 1715z– 
4a) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
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(i) by inserting ‘‘or the FHA, as ap-
plicable,’’ after ‘‘Secretary’)’’; 
(ii) by inserting ‘‘or by the FHA pur-
suant to the FHA Reform and Moderniza-
tion Act of 2013’’ after ‘‘National Housing 
Act’’; and 
(iii) in the last sentence, by inserting 
‘‘or the FHA’’ after ‘‘Secretary’’ each 
place such term appears; 
(B) in paragraph (2), by inserting ‘‘or the 
FHA Reform and Modernization Act of 2013’’ 
before the first comma; and 
(2) in subsections (b) through (e)— 
(A) by inserting ‘‘or the FHA, as applica-
ble,’’ after ‘‘Secretary,’’ each place such term 
appears; and 
(B) by inserting ‘‘or the FHA, as applica-
ble,’’ after ‘‘Secretary’’ each place such term 
appears (except the penultimate occurrence in 
subsection (c)). 
(d) SINGLE FAMILY MORTGAGE FORECLOSURE.— 
The Single Family Mortgage Foreclosure Act of 1994 (12 
U.S.C. 3751 et seq.) is amended— 
(1) 
in 
section 
802(b)(1) 
(12 
U.S.C. 
3751(b)(1)), by inserting ‘‘or by the FHA pursuant 
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136 
to the FHA Reform and Modernization Act of 
2013’’ before the semicolon; 
(2) 
in 
section 
803(10)(A) 
(12 
U.S.C. 
3752(10)(A))— 
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) is held by the FHA pursuant to the 
FHA Reform and Modernization Act of 2013; 
or’’; and 
(3) by adding at the end the following new sec-
tion: 
‘‘SEC. 820. AUTHORITY OF FHA. 
‘‘After the expiration of the transition period under 
section 281 of the FHA Reform and Modernization Act 
of 2013, any reference in sections 804 through 819 of this 
Act to the Secretary shall be considered to also refer to 
the FHA (as established pursuant to subtitle A of such 
Act), but only with respect to single family mortgages de-
scribed in section 803(10)(B).’’. 
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(e) MULTIFAMILY MORTGAGE FORECLOSURE.—The 
Multifamily Mortgage Foreclosure Act of 1981 (12 U.S.C. 
3701 et seq.) is amended— 
(1) in section 363(2) (12 U.S.C. 3702(2)), by 
adding after and below subparagraph (E) the fol-
lowing: 
‘‘Such term includes a mortgage on a property consisting 
of 5 or more dwelling units that is held by the FHA pursu-
ant to the FHA Reform and Modernization Act of 2013.’’. 
(2) by adding at the end the following new sec-
tion: 
‘‘AUTHORITY OF FHA 
‘‘SEC. 369J. After the expiration of the transition pe-
riod under section 281 of the FHA Reform and Mod-
ernization Act of 2013, any reference in sections 364 
through 369I of this Act to the Secretary shall be consid-
ered to also refer to the FHA (as established pursuant 
to subtitle A of such Act), but only with respect to multi-
family mortgages described in the last sentence of section 
363(2).’’. 
SEC. 294. RULE OF CONSTRUCTION. 
Notwithstanding any other evidence of the intent of 
the Congress, it is hereby declared to be the intent of Con-
gress that the provisions of this title shall be construed 
broadly to achieve the purposes of the title, and the provi-
sions of any other Act that must be construed with any 
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138 
provision of this title shall similarly be construed to 
achieve the purposes of this title to the extent reasonably 
possible. This section shall take effect on the date of the 
enactment of this Act. 
SEC. 295. EFFECTIVE DATE. 
The amendments made by this subtitle shall be made, 
and shall apply beginning on, the expiration of the transi-
tion period under section 281. 
TITLE III—BUILDING A NEW 
MARKET STRUCTURE 
Subtitle A—National Mortgage 
Market Utility 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘National Mortgage 
Market Utility Act of 2013’’. 
SEC. 302. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the liquidity and efficiency of the national 
housing finance market is enhanced by a robust sec-
ondary market for residential mortgage loans, in-
cluding securities backed by residential mortgage 
loans; 
(2) the financial crisis that began in 2007 re-
vealed weaknesses in the market infrastructure re-
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lated to residential mortgage-backed securities, in-
cluding— 
(A) weaknesses in standards— 
(i) for underwriting and servicing resi-
dential mortgage loans that may be collat-
eral for mortgage-backed securities; and 
(ii) for issuers and trustees of such 
securities; 
(B) weaknesses in the manner of recording 
and registering ownership and security interests 
in residential mortgage loans that backed pools 
of securities; and 
(C) weaknesses in the availability of infor-
mation to assess performance of pools; 
(3) weaknesses revealed in the financial crisis 
created uncertainty and impeded timely and success-
ful resolution of troubled residential mortgage loans, 
and have impeded the return of private capital to 
the market for securities backed by residential mort-
gage loans in the absence of a Federal guarantee of 
timely payment of principal and interest to investors; 
and 
(4) improved standards and information avail-
ability and a national system for registering mort-
gage-related documents, including notes, mortgages 
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and deeds of trust, and ownership and security in-
terests established therein, with standard procedures 
for demonstrating the right to act with regard to 
such notes or other registered data, would assist in 
addressing these weaknesses. 
(b) PURPOSES.—The purposes of the national mort-
gage market utility created by this title are— 
(1) to enhance efficiency, liquidity, and security 
in the secondary market for residential mortgages, 
including mortgage-backed securities; 
(2) to establish standards related to originating 
and servicing eligible collateral and for issuers and 
trustees of qualified securities, which would be ex-
empt from the Securities Act of 1933; 
(3) to improve uniformity, quality and accessi-
bility of information related to the performance of 
residential mortgage loans; 
(4) to operate a common securitization platform 
that could be available to issuers of residential mort-
gage-backed securities; 
(5) to foster the use and uniformity of elec-
tronic methods for the creation, authentication, 
transmission, storage, and availability of materials 
relating to mortgages; 
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(6) to provide a central repository for notes, 
mortgages, and other mortgage-related information, 
and address problems that can arise when paper 
notes cannot be produced, due to loss or destruction 
as a result of natural disaster or other causes; and 
(7) to provide a uniform procedure for dem-
onstrating the right to act with regard to such notes 
or other registered data for all actions in any State 
or Federal proceeding, judicial or nonjudicial, involv-
ing such notes or other data. 
SEC. 303. DEFINITIONS. 
For purposes of this subtitle, the following definitions 
shall apply: 
(1) AFFILIATE.—With respect to the Utility, 
the term ‘‘affiliate’’ means any entity that controls, 
is controlled by, or is under common control with, 
the Utility. 
(2) AGENCY.—The term ‘‘Agency’’ means the 
Federal Housing Finance Agency. 
(3) 
DEPOSITOR.—The 
term 
‘‘depositor’’ 
means— 
(A) any person authorized to submit docu-
ments or data for registration with the Reposi-
tory; and 
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142 
(B) any person qualified pursuant to sec-
tion 331 (relating to organization and operation 
of the Repository) to inform the Repository 
of— 
(i) newly identified interest holders, 
whether through creation, assignment, or 
transfer; or 
(ii) changes to interests of existing 
holders, including through modification, 
amendment, or restatement of, or dis-
charge related to, any registered mortgage- 
related document. 
(4) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(5) ELIGIBLE COLLATERAL.—The term ‘‘eligi-
ble collateral’’ means a residential mortgage loan 
that meets any standard for mortgage classification 
established pursuant to section 322 (relating to 
standards for qualified securities). 
(6) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation and any affiliate thereof, and 
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143 
(B) the Federal Home Loan Mortgage 
Corporation and any affiliate thereof. 
(7) 
MORTGAGE-RELATED
DOCUMENT.—The 
term ‘‘mortgage-related document’’ means any docu-
ment or other information or data related to the use 
of residential real estate as security for a loan, in-
cluding documents establishing an obligation to 
repay a loan secured by residential real estate, es-
tablishing a security interest in real estate, estab-
lishing the value of the real estate at the time the 
security interest is created, and insuring clear title 
to residential real estate pledged as security, or as 
the Director by regulation may define. Such docu-
ments may include electronic documents. 
(8) ORGANIZER.—The term ‘‘organizer’’ means 
the person or entity that establishes the Utility. 
(9) PARTICIPANT.—The term ‘‘participant’’ 
means any person authorized to use data maintained 
or created by the Repository that is not otherwise 
available to the public. 
(10) PLATFORM.—The term ‘‘Platform’’ means 
the securitization infrastructure announced by the 
Federal Housing Finance Agency on October 4, 
2012, and as developed by an enterprise or the en-
terprises in conservatorship, under authority of the 
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144 
Federal Housing Finance Agency pursuant to the 
Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992. 
(11) REPOSITORY.—The term ‘‘Repository’’ 
means the national mortgage data repository orga-
nized under section 331. 
(12) UTILITY.—The term ‘‘Utility’’ means the 
national mortgage market utility established under 
section 311. 
(13) UTILITY-AFFILIATED
PARTY.—The term 
‘‘utility-affiliated party’’ means— 
(A) any director, officer, employee or con-
trolling stockholder of, or agent for, the Utility; 
(B) any shareholder, affiliate, consultant, 
or joint venture partner of the Utility, and any 
other person, as determined by the Director (by 
regulation or on a case-by-case basis) that par-
ticipates in the conduct of the affairs of the 
Utility; 
(C) any independent contractor of the Util-
ity (including any attorney, appraiser or ac-
countant) if— 
(i) the independent contractor know-
ingly or recklessly participates in any viola-
tion of law or regulation, any breach of fi-
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145 
duciary duty or any unsafe or unsound 
practice; and 
(ii) such violation, breach or practice 
caused, or is likely to cause, more than a 
minimal financial loss to, or a significant 
adverse effect on, the Utility. 
PART 1—ESTABLISHMENT AND AUTHORITY OF 
THE UTILITY 
SEC. 311. ESTABLISHMENT. 
(a) AUTHORITY OF DIRECTOR.—Under such regula-
tions as the Director may prescribe, the Director shall pro-
vide for the organization, incorporation, examination, op-
eration, and regulation of a national mortgage market 
utility (‘‘Utility’’), and issuance of a charter for such Util-
ity. The Utility shall be organized, operated, and managed 
as a not-for-profit entity. 
(b) FORMATION OF UTILITY; APPLICATION.— 
(1) FORMATION.—Subject to the terms of this 
subtitle and any regulations issued by the Director, 
a person or entity may file an application with the 
Director to establish the Utility. The Utility may be 
chartered as a corporation, mutual association, part-
nership, limited liability corporation, cooperative, or 
any other organizational form that the applicant 
may deem appropriate. 
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146 
(2) CONTENTS OF APPLICATION.—An applica-
tion for establishment of the Utility shall include— 
(A) the proposed articles of association; 
(B) a statement of the general object and 
purpose of the Utility, consistent with the provi-
sions of this subtitle; 
(C) the proposed capitalization and busi-
ness plan for the Utility; 
(D) the proposed State whose law would 
govern, by election of the applicant, the oper-
ation of the Utility to the extent not otherwise 
covered by this subtitle; 
(E) information on the financial resources 
of the applicant; 
(F) a statement of the relevant housing fi-
nance experience of the applicant; 
(G) identification of the proposed senior 
managers of the Utility, and the relevant expe-
rience of such individuals; and 
(H) any other information the Director de-
termines to be necessary to evaluate the back-
ground, experience, and integrity of the appli-
cant and the proposed senior managers, or in-
formation otherwise relevant to determine the 
likely success of the proposed Utility. 
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(c) ISSUANCE OF CHARTER AND CHARTERING CRI-
TERIA.— 
(1) CHARTER.—Not later than the end of the 
2-year period following the date of the enactment of 
this Act, the Director shall issue a charter for the 
Utility to the applicant that the Director determines, 
in the Director’s sole discretion, has the managerial, 
financial, and operational resources to succeed, con-
sistent with the purposes of this subtitle. At the dis-
cretion of the Director, the charter may require the 
Utility to obtain specific approval from the Director 
before commencing any business operation, including 
operations related to the Platform or the Repository, 
which approval shall be provided when the Director 
determines, in the Director’s sole discretion, that the 
Utility demonstrates appropriate operational, mana-
gerial, and governance capability with regard to such 
operation, including successful completion of testing 
and transition periods. 
(2) CHARTERING CRITERIA.—In making a de-
termination under paragraph (1), the Director shall 
consider the competence, experience, and integrity of 
the applicant and proposed senior managers of the 
Utility, and the financial and operational resources 
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148 
and future prospects of the Utility. The Director 
may not issue a charter if the applicant fails to— 
(A) comply with all applicable formation 
requirements; 
(B) provide all information requested by 
the Director; 
(C) demonstrate the competence, experi-
ence, and integrity necessary to operate the 
Utility in a safe and sound manner; 
(D) demonstrate sufficient financial re-
sources necessary to operate the Utility in a 
safe and sound manner; 
(E) provide the Director with assurances 
that it will operate and maintain the Platform 
in an open-access manner that does not dis-
criminate against eligible loan originators, 
aggregators, or qualified issuers; or 
(F) provide the Director with assurances 
that the Utility will make available to the Di-
rector, on an on-going basis, such information 
on the operation and activities of the Utility, or 
any affiliate of the Utility, that the Director 
deems necessary to ensure the safe and sound 
operation of the Utility and to enforce compli-
ance with this subtitle. 
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(3) EXPLANATION
FOR
DENIAL.—Within 30 
days of denying any application for the issuance of 
a charter under this section, the Director shall pro-
vide the applicant with a written explanation of the 
basis for the denial. 
(d) AUTHORITY TO SUSPEND.— 
(1) IN GENERAL.—The authority of the Direc-
tor shall include the authority to suspend the charter 
of the Utility, if the Director determines, in the Di-
rector’s discretion, that— 
(A) the organizers have failed to make ade-
quate progress in establishing the Utility or any 
business operation; 
(B) the organizers engaged in waste of ap-
propriated funds made available for establish-
ment of the Repository; or 
(C) such suspension is necessary for any 
other reason related to safe and sound oper-
ation of the Utility. 
(2) RULEMAKING.—The Director shall issue 
regulations to address suspension of the charter, in-
cluding a process for remediation. 
(e) STATUS.— 
(1) NOT A FEDERAL GOVERNMENT INSTRUMEN-
TALITY.—The Utility is not, and shall not be 
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(1) not less than two members shall be from 
larger financial institutions; 
(2) not less than two members shall be from 
smaller financial institutions; 
(3) not less than two members shall have exper-
tise in residential mortgage securitizations, 
(4) not less than two members shall have exper-
tise in legal and electronic documentation and sys-
tems; and 
(5) such other members as the Director may 
provide, who shall have such qualifications as the 
Director may establish in the charter or by regula-
tion to meet the requirements for independence and 
any provisions of applicable State law. 
(g) REPORTS TO CONGRESS.—Commencing with the 
first annual report of the Director following the date of 
the enactment of this Act, the annual report of the Direc-
tor under section 1319B of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4521) shall include a description of the Agency’s 
activities with regard to organization, incorporation, ex-
amination, operation, and regulation of the Utility. 
SEC. 312. GENERAL POWERS; AUTHORIZED AND PROHIB-
ITED ACTIVITIES. 
(a) GENERAL POWERS.—The Utility may— 
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(1) adopt and use a corporate seal; 
(2) determine a State whose law will govern the 
corporate business activities of the Utility; 
(3) adopt, amend, and repeal by-laws; 
(4) sue or be sued, subject to section 334 (re-
lating to judicial review); 
(5) make contracts, incur liabilities, borrow 
money, and issue notes, bonds, or other obligations; 
(6) purchase, receive, hold, and use real and 
personal property and other assets necessary for the 
conduct of its operations; 
(7) elect or appoint directors, officers, employ-
ees and agents, subject to section 311(f); and 
(8) upon receipt of the Director’s prior written 
approval, establish subsidiaries or affiliates that 
shall be subject to the same rights, duties and re-
sponsibilities as the Utility. 
(b) AUTHORIZED ACTIVITIES.—In addition to the 
general powers under subsection (a), the Utility shall— 
(1) develop standards related to originating, 
servicing, pooling, and securitizing residential mort-
gage loans in accordance with part 2; 
(2) operate and maintain the Platform and es-
tablish fees for use of the Platform; 
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(3) establish the Repository and establish fees 
for registration of mortgage-related documents and 
maintenance and use of data of the Repository, in 
accordance with part 3; 
(4) perform any other service or engage in any 
other activity that the Director determines, by regu-
lation or order, to be incidental to the activities enu-
merated in this subsection; and 
(5) establish fees for the provision of other re-
lated or incidental services not inconsistent with the 
purposes of this subtitle. 
(c) PROHIBITED
ACTIVITIES.—The Utility shall 
not— 
(1) originate, service, insure, or guarantee any 
residential mortgage or other financial instrument 
that is associated with a residential mortgage; 
(2) guarantee timely payment of principal or in-
terest on any mortgage-related security; 
(3) adopt access rules or fees for the Platform 
the effect of which is to discriminate against eligible 
loan originators, aggregators, or qualified issuers 
based on size, composition, business line, or loan vol-
ume; or 
(4) perform any service or engage in any activ-
ity other than those authorized under this subtitle, 
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unless such activity has been determined by the Di-
rector to be incidental to an authorized activity. 
SEC. 313. TRANSFER OF OWNERSHIP OF PLATFORM. 
(a) VALUATION.—Not later than the end of the 6- 
month period beginning on the date of the enactment of 
this Act, the Director shall determine a method for recov-
ering the cost to each enterprise of developing the Plat-
form, in consultation with Treasury, and agree on a valu-
ation of the Platform upon transfer to the Utility. 
(b) TRANSFER.—Not later than the end of the 1-year 
period beginning on the date of the issuance of the charter 
of the Utility by the Director, the Director shall oversee 
the transfer to the Utility of ownership of the Platform. 
At the time of such transfer, the value of the Platform 
as established in accordance with subsection (a) shall be 
deemed transferred to the Utility, and shall be repaid to 
the Treasury of the United States by the Utility within 
10 years after such transfer. 
(c) AVAILABILITY TO DIRECTOR.—After transfer of 
the Platform to the Utility, to the extent feasible the Plat-
form shall be made available to the Agency on terms and 
conditions applicable to other users, to assist with man-
aging the wind-down of any enterprise for which the Agen-
cy has been appointed conservator or receiver pursuant to 
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section 1367 of the Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 4617). 
SEC. 314. FUNDING. 
(a) INITIAL FUNDING.—There is authorized to be ap-
propriated $150,000,000 for the establishment and initial 
oversight, regulation, and supervision of the Utility and 
its operation. 
(b) REPAYMENT OF INITIAL FUNDING.—The Utility 
shall repay to the Treasury of the United States the 
amount of the initial funding provided in subsection (a) 
within the 10-year period beginning on the date that the 
Utility is chartered. 
(c) ONGOING FUNDING.— 
(1) COLLECTION
OF
FEES.—After establish-
ment, all expenses of the Utility shall be paid for by 
fees collected based on services provided by and op-
erations of the Utility. 
(2) ESTABLISHMENT OF FEE SCHEDULE.—The 
Utility shall— 
(A) establish, subject to the approval of 
the Director, a fee schedule and may differen-
tiate fees based on classes or types of services, 
operations, and users of services or operations, 
and such differentiation shall not be deemed 
discriminatory; and 
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(B) review and publish the fee schedule not 
less frequently than annually, but may review, 
revise, and publish the schedule more frequently 
than annually. 
SEC. 315. REGULATION, SUPERVISION, AND ENFORCEMENT. 
(a) GENERAL OVERSIGHT.—The Director shall exer-
cise, by rule, order, or guidance, oversight of the Utility, 
which shall include the authority to regulate, supervise, 
and examine the Utility and take enforcement actions 
against the Utility or any Utility-affiliated party, con-
sistent with the provisions of the Federal Housing Enter-
prise Financial Safety and Soundness Act of 1992. 
(b) SCOPE OF AUTHORITY.—The authority of the Di-
rector under this section shall include the authority to ex-
ercise such incidental powers as may be necessary or ap-
propriate to fulfill the duties and responsibilities of the 
Director in the oversight, supervision, and regulation of 
the Utility. 
(c) DIVISION OF UTILITY REGULATION.—The Direc-
tor shall establish within the Agency a Division of Utility 
Regulation, which shall— 
(1) be headed by a Deputy Director designated 
by the Director from among individuals who are citi-
zens of the United States who have a demonstrated 
understanding of financial management or oversight 
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and of mortgage securities markets and housing fi-
nance; and 
(2) as requested by the Director, conduct exam-
ination and supervision activities, gather any infor-
mation attendant to such activities, and provide rec-
ommendations to the Director regarding the safe 
and sound operation of the Utility and regarding 
any requests to revise, alter, or amend existing or 
proposed activities. 
(d) CONSULTATION WITH OTHER AGENCIES.—In ex-
ercising authority to regulate and supervise the Utility, the 
Director shall consult with other Federal departments and 
agencies that regulate or supervise entities, institutions, 
or companies that are or may become subject to stand-
ards, rules, processes, or procedures developed by the Util-
ity (including issuers through the Platform and depositors 
or participants in the Repository), including the Bureau 
of Consumer Financial Protection and any appropriate 
Federal banking agency (as defined under section 3 of the 
Federal Deposit Insurance Act). 
(e) ANNUAL ASSESSMENT.—The Director shall es-
tablish and collect from the Utility an annual assessment 
in an amount not exceeding the amount sufficient to pro-
vide for reasonable costs (including administrative costs) 
and expenses of the Agency related to its oversight of the 
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Utility. The amounts received by the Director from assess-
ments under this section shall not be construed to be Gov-
ernment or public funds or appropriated money. Notwith-
standing any other provision of law, the amounts received 
by the Director from assessments under this section shall 
not be subject to apportionment for the purpose of chapter 
15 of title 31, United States Code, or under any other 
authority. 
SEC. 316. CIVIL AND CRIMINAL LIABILITY. 
(a) USE OF NAMES.— 
(1) IN GENERAL.—Except as expressly author-
ized by statute of the United States, no person or 
organization (except the Repository, Utility, and 
Platform) shall use the term ‘‘National Mortgage 
Market Utility’’, ‘‘Common Securitization Platform’’, 
or ‘‘National Mortgage Data Repository’’, or such 
other name as the Director may establish in the 
charter of the Utility or any combination of words 
that appears to indicate that such use of the term 
conflicts with the operation of the Utility or any 
function created herein. No individual or organiza-
tion shall use or display— 
(A) any sign, device, or insignia prescribed 
or approved by the Utility for use of display by 
the Utility; 
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(B) any copy, reproduction or colorable 
imitation of any such sign, device, or insignia; 
or 
(C) any sign, device or insignia reasonably 
calculated to convey the impression that it is a 
sign, device or insignia used by the Utility or 
prescribed by the Utility contrary to policies or 
procedures of the Utility prohibiting, limiting or 
restricting such use by any individual or organi-
zation. 
(2) RELIEF.—The Agency or Utility may seek 
to enjoin or recover damages for any breach of this 
section and refer to the Attorney General any mat-
ters that may constitute criminal activity for a 
breach of this section. 
(b) EXCLUSIVE OPERATION OF THE REPOSITORY.— 
Except as expressly authorized by statute of the United 
States, no person or organization (except the Utility) shall 
operate a national registry or repository of mortgage-re-
lated documents. Any State of the United States may op-
erate a State registry or repository system, subject to the 
laws of that State, provided that any such State registry 
or repository system does not conflict with the Repository 
or the purposes of this subtitle. 
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(c) ACTIONS FOR BREACH.—In any action for breach 
of contract, including breach of representation or war-
ranty, or breach of privacy related to data collected and 
maintained by the Repository, no prevailing party may re-
cover more than an amount established by the Director, 
by regulation. When issuing any such regulation, the Di-
rector shall take into consideration intentional, willful, 
reckless, or negligent actions or omissions. Such regula-
tions shall be reviewed not less frequently than annually, 
and may be revised in the Director’s discretion. 
PART 2—STANDARDS FOR QUALIFIED 
SECURITIES 
SEC. 321. QUALIFIED SECURITIES. 
For purposes of this subtitle, the term ‘‘qualified se-
curity’’ means a security that— 
(1) is collateralized by a class, or multiple class-
es, of residential mortgages established under sec-
tion 322(a); 
(2) is issued in accordance with a standard 
form securitization agreement under section 322(b); 
(3) is issued by a qualified issuer in accordance 
with section 322(g); 
(4) is issued through the Platform; and 
(5) is not guaranteed, in whole or in part, by 
the United States Government. 
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SEC. 322. STANDARDS FOR QUALIFIED SECURITIES. 
(a) STANDARD MORTGAGE CLASSIFICATIONS.— 
(1) ESTABLISHMENT
OF
MORTGAGE
CLASSI-
FICATIONS.—The Utility shall prescribe classifica-
tions for residential mortgages having various de-
grees of credit risk, ranging from a classification of 
mortgages having little to no credit risk to a classi-
fication of mortgages having higher credit risk. In 
prescribing such classifications the Utility shall seek 
to allow for the pricing of credit risk, allow for the 
trading of securities collateralized by each classifica-
tion of mortgages established pursuant to this sub-
section in the forward market, and maintain well- 
functioning liquid markets in securities collateralized 
by each of the classifications of mortgages estab-
lished pursuant to this subsection. 
(2) UNDERWRITING CRITERIA.—For each clas-
sification of mortgages established under paragraph 
(1), the Utility shall establish standards for each of 
the following underwriting criteria: 
(A) DEBT-TO-INCOME
RATIO.—The ratio 
of the amount of the total monthly debt of the 
mortgagor to the amount of the monthly income 
of the mortgagor. 
(B) LOAN-TO-VALUE RATIO.—The ratio of 
the principal obligation under the mortgage to 
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the value of the residence subject to the mort-
gage, at the time of mortgage origination. 
(C) CREDIT HISTORY.—Information on the 
credit history of the mortgagor, including credit 
scores of the mortgagor. 
(D) LOAN DOCUMENTATION.—The extent 
of loan documentation and verification of the fi-
nancial resources of the mortgagor used to 
qualify the mortgagor for the mortgage, includ-
ing any appraisal. 
(E) OCCUPANCY.—Whether the residence 
subject to the mortgage is occupied by the 
mortgagor. 
(F) 
CREDIT
ENHANCEMENT.—Whether 
any mortgage insurance or other type of insur-
ance or credit enhancement was obtained at the 
time of origination. 
(G) LOAN PAYMENT TERMS.— 
(i) IN GENERAL.—The terms of the 
mortgage that determine the magnitude 
and timing of payments due from the 
mortgagor, including the term to maturity 
of the mortgage, the frequency of payment, 
the type of amortization, any prepayment 
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penalties, and whether the interest rate is 
fixed or may vary. 
(ii) INCLUSION OF 30-YEAR FIXED IN-
TEREST
RATE.—Terms established under 
clause (i) shall include a 30-year fixed in-
terest rate mortgage. 
(H) OTHER.—Such other underwriting cri-
teria as the Utility may establish, consistent 
with the goals of this subtitle. 
(3) DEFINITIONS.—The Utility shall, for pur-
poses of this subsection, prescribe definitions for 
each of the following terms: 
(A) MORTGAGE.—The term ‘‘mortgage’’, 
which definition shall include only mortgages on 
residential properties. 
(B) DEFAULT.—The term ‘‘default’’, with 
respect to a mortgage. 
(C) DELINQUENCY.—The term ‘‘delin-
quency’’, with respect to a mortgage. 
(D) LOAN
DOCUMENTATION.—The term 
‘‘loan documentation’’, with respect to a mort-
gage. 
(E) 
ADDITIONAL
TERMS.—Such 
other 
terms as the Utility may establish. 
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(b) STANDARD
FORM
SECURITIZATION
AGREE-
MENTS.— 
(1) IN
GENERAL.—The Utility shall develop, 
adopt, and publish standard form securitization 
agreements for eligible collateral. 
(2) REQUIRED CONTENT.—The standard form 
securitization agreements to be developed under 
paragraph (1) shall include terms relating to— 
(A) pooling and servicing; 
(B) purchase and sale; 
(C) representations and warranties, includ-
ing representations and warranties as to com-
pliance or conformity with standards estab-
lished by the Utility, as appropriate; 
(D) indemnification and remedies, includ-
ing principles of a repurchase program that will 
ensure an appropriate amount of risk retention 
under the representations and warranties set 
forth under subparagraph (C); and 
(E) the qualification, responsibilities, and 
duties of trustees. 
(c) REGISTRATION WITH
THE REPOSITORY.—The 
Utility shall require that any mortgage-related document 
associated with eligible collateral for qualified securities be 
registered with the Repository. 
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(d) STANDARDS FOR SERVICING.—The Utility shall 
develop, adopt, and publish— 
(1) servicing standards, including for the modi-
fication, restructuring, or work-out of any mortgage 
that serves as collateral for a qualified security; and 
(2) a servicer succession plan, which may in-
clude provisions for— 
(A) a specialty servicer that can replace 
the existing servicer if the performance of the 
mortgage pool deteriorates to specified levels; 
and 
(B) a plan to achieve consistency in serv-
icing systems related to systematic note-taking, 
consistent mailing addresses, and other points 
of contact for borrowers to use, among other 
items. 
(e) STANDARDS FOR SERVICER REPORTING.—The 
Utility shall develop, adopt, and publish standards for the 
reporting obligations of servicers of any mortgage that 
serves as collateral for a qualified security. 
(f) STANDARDS
FOR AGGREGATORS.—The Utility 
may develop, adopt, and publish standards for aggregation 
of eligible collateral by entities, institutions, or companies 
other than an issuer. Notwithstanding any such standards 
developed by the Utility, any Federal Home Loan Bank 
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may act as an aggregator and offer the service of aggrega-
tion to any member of such Bank, subject to regulations 
prescribed by the Director. 
(g) STANDARDS FOR QUALIFIED ISSUERS.— 
(1) IN
GENERAL.—The Utility shall develop, 
adopt, and publish standards for an issuer to qualify 
as a qualified issuer. Such standards shall only in-
clude— 
(A) the experience, financial resources, and 
integrity of the issuer and its principals, includ-
ing compliance history with Federal and State 
laws; 
(B) the adequacy of insurance and fidelity 
coverage of the issuer with respect to errors 
and omissions; and 
(C) a requirement that the issuer submit 
audited financial statements to the Utility, who 
shall make such statements publicly available 
through the Utility’s Web site. 
(2) APPLICATION PROCESS.— 
(A) IN GENERAL.—The Utility shall estab-
lish an application process for the qualification 
of issuers, in such form and manner and requir-
ing such information as the Utility may pre-
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scribe, in accordance with standards adopted 
under paragraph (1). 
(B) APPROVAL.—The Utility shall approve 
any application made pursuant to subparagraph 
(A) unless the issuer does not meet the stand-
ards adopted under paragraph (1). 
(C) PUBLICATION.—The Agency shall pub-
lish a list of newly qualified issuers in the Fed-
eral Register and the Utility shall maintain an 
updated list of qualified issuers on the Utility’s 
Web site. 
(3) REVIEW AND REVOCATION OF QUALIFIED 
STATUS.— 
(A) IN GENERAL.—The Utility may review 
the status of a qualified issuer if the Utility is 
notified that a claim has been made against the 
issuer by a trustee with respect to a violation 
of a contractual term in a securitization docu-
ment of the issuer. 
(B) REVOCATION.— 
(i) IN GENERAL.—Subject to subpara-
graph (C), if the Utility determines, sub-
ject to the approval of the Director, in a 
review pursuant to subparagraph (A), that 
an issuer no longer meets the standards 
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(h) STANDARDS FOR TRUSTEES.— 
(1) IN GENERAL.—There shall at all times be 
one or more trustee for each pool of mortgages that 
acts as collateral for a qualified security. 
(2) RULEMAKING.—The Director shall issue 
regulations regarding the qualifications of trustees 
under paragraph (1) that shall, to the extent prac-
ticable, be consistent with the qualification provi-
sions applicable to trustees under section 310(a) of 
the Trust Indenture Act of 1934 (15 U.S.C. 
77jjj(a)). 
(3) CONFLICTS
OF
INTEREST.—The Director 
shall issue conflict of interest regulations that apply 
to a qualified trustee. Such regulations shall, to the 
extent practicable, be consistent with those conflict 
of interest provisions applicable to an indenture 
trustee under section 310(b) of the Trust Indenture 
Act of 1934 (15 U.S.C. 77jjj(b)). 
(4) REPORTING OF CLAIMS.—Any time a trust-
ee brings a claim against a qualified issuer on behalf 
of investors with respect to a standard form 
securitization agreement, the trustee shall notify the 
Director of such claim. 
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(5) PROTECTION OF INVESTOR RIGHTS.—For 
the purpose of protecting investor rights, each trust-
ee shall— 
(A) maintain a list of all investors (bene-
ficial owners) in a qualified security; 
(B) update such list from time to time; 
(C) not make such list available to inves-
tors (beneficial owners); and 
(D) act as a means to communicate infor-
mation about the qualified security to investors 
(beneficial owners) and act as a means for in-
vestors (beneficial owners) to communicate with 
each other. 
(6) NO LIABILITY FOR CERTAIN COMMUNICA-
TIONS.—A trustee shall not be liable for the content 
of any information provided to the trustee by an in-
vestor (beneficial owner) that the trustee commu-
nicates to another investor (beneficial owner). 
(7) INVESTOR (BENEFICIAL OWNER) NOTIFICA-
TION OF TRUSTEE.—A person who becomes an in-
vestor (beneficial owner) in a qualified security shall 
promptly notify the trustee of such security of the 
change in ownership. 
(i) INDEPENDENT THIRD PARTY.—If the majority of 
investors (beneficial owners) in a pool of qualified securi-
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ties chooses to hire an independent third party to act on 
behalf of the best interests of the investors (beneficial own-
ers), such party shall— 
(1) be granted access to the loan documents for 
the mortgage loans backing such security and all 
servicing reports the servicer provides to investors 
(beneficial owners) or the trustee; 
(2) be granted access to the list of investors 
(beneficial owners) maintained by the trustee, on the 
condition that the independent third party will not 
make the list available to the investors (beneficial 
owners); and 
(3) have the right, on behalf of the investors 
(beneficial owners), to inform the trustee of such se-
curities of any breach of the securitization agree-
ment identified by the third party. 
(j) MANDATORY ARBITRATION.— 
(1) IN
GENERAL.—All disputes between an 
owner of a qualified security and the qualified issuer 
of such security relating to representations and war-
ranties shall be subject to mandatory arbitration 
procedures established by the Utility, in accordance 
with current market practices. 
(2) SELECTION
OF
ARBITRATOR.—Investors 
(beneficial owners) and issuers subject to a dispute 
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described under paragraph (1) shall have the right 
to agree on an independent arbitrator. If the parties 
cannot agree on an independent arbitrator, the Util-
ity shall select an independent arbitrator for the par-
ties. 
(3) REPORTING DUTY OF ARBITRATOR.— 
(A) UPON
COMMENCEMENT.—The arbi-
trator shall provide the Utility with notice upon 
commencement of any arbitration under this 
subsection. 
(B) UPON CONCLUSION.—Upon conclusion 
of any arbitration under this subsection, the ar-
bitrator shall provide the Utility with— 
(i) the decision reached by the arbi-
trator; and 
(ii) the basis for the arbitrator’s deci-
sion, including any evidence or testimony 
received during the arbitration process. 
(k) DATA STANDARDS; DISCLOSURE STANDARDS.— 
(1) DATA STANDARDS.—The Utility shall de-
velop, adopt, and publish standard data definitions 
for all aspects of loan origination, appraisals, and 
servicing. In developing such definitions, the Utility 
shall consider the data standard-setting work under-
taken by the Mortgage Industry Standards Mainte-
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nance Organization through the enterprises’ Uni-
form Mortgage Data Program announced by the 
Agency on May 24, 2010. 
(2) DISCLOSURE
STANDARDS.—The Utility 
shall develop, adopt, and publish standards for dis-
closure of loan origination, appraisal, and servicing 
data, including data required in subsection (a)(2) 
(relating to underwriting criteria) for residential 
mortgage loans that comprise qualified securities, 
and that allow for trading of qualified securities 
under this subtitle in a forward market. 
(3) COORDINATION.—In developing the data 
and disclosure standards required by this subsection, 
the Utility shall ensure that such standards are co-
ordinated. 
(4) PRIVACY PROTECTIONS.—In prescribing the 
definitions and standards required under this sub-
section, the Utility shall take into consideration 
issues of consumer privacy and all statutes, rules, 
and regulations related to privacy of consumer credit 
information and personally identifiable information. 
Such standards shall expressly prohibit the identi-
fication of specific borrowers. 
(5) CONSULTATION.—When reviewing any dis-
closure standards established under this subsection, 
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the Director shall consult with the Securities and 
Exchange Commission. 
(l) TIMING OF ISSUANCE; AGENCY REVIEW; AUTHOR-
ITY TO REVISE STANDARDS.— 
(1) TIMING.—The Director shall issue any reg-
ulations required by this section not later than the 
end of the 12-month period beginning on the date of 
the enactment of this Act. The Utility shall issue 
any definitions, standards, rules, processes, or proce-
dures required by this section not later than the end 
of the 12-month period beginning on the date of 
issuance of the charter by the Director. 
(2) AGENCY
REVIEW.—Any definition, stand-
ard, rule, process or procedure established by the 
Utility shall be submitted to the Director for review 
and approval prior to its implementation if, in the 
Director’s discretion, the Director requires such sub-
mission. Any definition, standard, rule, process or 
procedure that the Director requires be submitted to 
the Agency for review and approval shall be reviewed 
within three months of submission. 
(3) AUTHORITY TO REVISE.— 
(A) IN GENERAL.—The Utility may review, 
revise, and, if revised, re-publish any standard 
form securitization agreement or other defini-
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