No GSE Subsidies for Investor Properties Act

Bill: 117-s-3040
Sponsor: full_name: Sen. Toomey, Patrick [R-PA]
Introduced: 2021-10-21
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-10-21
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-10-21
action_desc: Introduced in Senate
text: <p><strong>No GSE Subsidies for Investor Properties Act </strong></p> <p>This bill prohibits government-sponsored enterprises (i.e., Fannie Mae and Freddie Mac) from purchasing or acquiring a mortgage secured by an investor property loan (i.e., a property comprised of 1-to-4 family dwelling units that is not the principal residence or a second home of the borrower) 18 months after the date of enactment. Further, these enterprises must implement a plan to gradually reduce the purchase and acquisition of such loans.</p>

tv_txt: II 117th CONGRESS 1st Session S. 3040 IN THE SENATE OF THE UNITED STATES October 21, 2021 Mr. Toomey introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prohibit Fannie Mae and Freddie Mac from purchasing or otherwise acquiring investor property loans, and for other purposes.

1. Short title This Act may be cited as the No GSE Subsidies for Investor Properties Act . 2. Definitions In this Act: (1) Conventional mortgage The term conventional mortgage has the meaning given the term in section 302(i) of the Federal Home Loan Mortgage Act ( 12 U.S.C. 1451(i) ). (2) Enterprise The term enterprise has the meaning given the term in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4502 ). (3) Investor property loan The term investor property loan means a conventional mortgage secured by a property comprising 1-to-4 family dwelling units that is not the principal residence or a second home of the borrower. 3. Prohibition on purchase or acquisition of investor property loans (a) In general Notwithstanding any other provision of law, including the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1716 et seq. ) or the Federal Home Loan Mortgage Corporation Act ( 42 U.S.C. 1451 et seq. ), on and after the date that is 18 months after the date of enactment of this Act, an enterprise may not purchase or otherwise acquire an investor property loan. (b) Transition plans The Federal Housing Finance Agency shall require each enterprise to develop and implement a plan to gradually reduce the purchase and acquisition of investor property loans by the enterprise to achieve compliance with subsection (a) while mitigating the risk of disruption to the housing finance market in the United States.