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Title II — Duties, Responsibilities, and Structure of the FMIC

S. 1217 · 113th Congress · Jun 25, 2013 · Lineage

II Duties, Responsibilities, and Structure of the FMIC

A Duties and Authorities

Sec. 201 Duties and responsibilities of the FMIC

(a)
Duties— The principal duties of the Corporation shall be to—
(1)
carry out this Act in a manner that—
(A)
minimizes any potential long-term negative cost on the taxpayer; and
(B)
ensures, to the maximum extent possible—
(i)
a liquid and resilient housing finance market; and
(ii)
the availability of mortgage credit;
(2)
develop standard form credit risk-sharing mechanisms, products, structures, contracts, or other security agreements that require private market holders of a covered security insured under this Act to assume the first loss position with respect to losses incurred on such securities;
(3)
provide insurance on any covered security for which private market holders of such security have assumed the first loss position with respect to losses that may be incurred on such security in order to provide a liquid and resilient housing finance market;
(4)
provide leadership to the housing finance market to help ensure that all geographic locations have access to mortgage credit;
(5)
charge and collect fees in exchange for providing such insurance, whereby such fees shall be sufficient to protect the taxpayer from the risk of providing such insurance and to fund the activities and operations of the Corporation;
(6)
establish and maintain a Mortgage Insurance Fund;
(7)
facilitate securitization of eligible mortgages originated by credit unions and community and mid-size banks without securitization capabilities;
(8)
ensure discipline and integrity in the market for covered securities by setting standards for the approval of private mortgage insurers, servicers, issuers, and bond guarantors;
(9)
establish, operate, and maintain a database for the collection, public use, and dissemination of uniform loan level information on eligible mortgages;
(10)
develop, adopt, and publish standard uniform securitization agreements for covered securities;
(11)
establish, operate, and maintain an electronic registry system for eligible mortgages that collateralize covered securities insured under this Act;
(12)
oversee and supervise the common securitization platform developed by the business entity announced by the Federal Housing Finance Agency and established by the enterprises; and
(13)
ensure that credit unions and community and mid-size banks—
(A)
have equal access to any such common securitization platform and any other securitization platforms; and
(B)
are not, in their access or use of such platforms, discriminated against through discounts for volume pricing or other mechanisms.
(b)
Scope of authority— The authority of the Corporation shall include the authority to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Corporation set forth under subsection (a).
(c)
Delegation of authority— The Board of Directors may delegate to officers and employees of the Corporation any of the functions, powers, or duties of the Corporation, as the Board of Directors determines appropriate.

Sec. 202 Standard form credit risk-sharing mechanisms, products, structures, contracts, or other security agreements

(a)
Requirements; share of loss; diversity— Pursuant to section 201(a)(2), the Corporation shall develop standard form credit-risk sharing mechanisms, products, structures, contracts, or other security agreements which shall require that the first loss position of private market holders of a covered security insured under this Act—
(1)
is adequate to cover losses that might be incurred as a result of adverse economic conditions, wherein such conditions are generally consistent with the economic conditions, including national home price declines, observed in the United States during moderate to severe recessions experienced during the last 100 years; and
(2)
is not less than 10 percent of the principal or face value of the covered security.
(b)
Development window for risk-Sharing mechanisms—
(1)
In general— The Corporation shall complete the development and implementation of the mechanisms, products, structures, contracts, or other security agreements required under subsection (a) not later than 5 years after the date of enactment of this Act.
(2)
Examination of various mechanisms— In developing the mechanisms, products, structures, contracts, or other security agreements required under subsection (a), the Corporation shall—
(A)
examine proposals that include a senior-subordinated deal structure, credit-linked structures, and the use of regulated guarantors with sufficient equity capital to absorb losses associated with moderate or severe economic downturns;
(B)
consider any risk-sharing mechanisms, products, structures, contracts, or other security agreements undertaken by the business entity announced by the Federal Housing Finance Agency and established by the enterprises to provide a common securitization platform for issuers in the secondary mortgage market;
(C)
consider how each proposed mechanism, product, structure, contract, or other security agreement—
(i)
minimizes any potential long-term negative cost to the taxpayer;
(ii)
impacts the availability of mortgage credit for—
(I)
small financial institutions, such as credit unions and community and mid-size banks; and
(II)
consumers;
(iii)
influences mortgage affordability;
(iv)
allows for loan modifications and foreclosure prevention alternatives;
(v)
interacts with the To-Be-Announced market; and
(vi)
facilitates market liquidity and resiliency; and
(D)
ensure that lenders of all sizes and from all geographic locations, including rural locations, have equitable access to secondary mortgage market financing.
(3)
Report—
(A)
In general— Not later than 1 year after the date of enactment of this Act, and annually thereafter until the end of the 5-year period provided in paragraph (1), the Corporation shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that—
(i)
details the benefits and drawbacks of each mechanism, product, structure, contract, or other security agreement that the Director considered in carrying out the requirement of this section;
(ii)
describes the operation and execution of any mechanisms, products, structures, contracts, or other security agreements that the Director determines best fulfills the requirements of this section; and
(iii)
explains how the Corporation arrived at the determination made under clause (ii).
(B)
Subsequent reports— After the expiration of the 5-year period provided in paragraph (1) and the submission of the report required under subparagraph (A), each time the Corporation develops an additional standard form credit risk-sharing mechanism, product, structure, contract, or other security agreement that fulfills the requirements of this section, the Corporation shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives addressing the identical concerns set forth under clauses (i) through (iii) of subparagraph (A).

Sec. 203 Mortgage Insurance Fund

(a)
Establishment— There is established the Mortgage Insurance Fund, which the Corporation shall—
(1)
maintain and administer; and
(2)
use to cover losses incurred on covered securities insured under this Act, when such losses exceed the first position losses absorbed by private market holders of such securities.
(b)
Deposits— The Mortgage Insurance Fund shall be credited with any—
(1)
insurance fee amounts required to be deposited in the Fund under this section;
(2)
guarantee fee amounts collected under section 601; and
(3)
amounts earned on investments pursuant to subsection (h).
(c)
Fiduciary responsibility— The Corporation has the responsibility to ensure that the Mortgage Insurance Fund remains financially sound.
(d)
Use—
(1)
In general— The Mortgage Insurance Fund shall be solely available to the Corporation for use by the Corporation to carry out the functions authorized by this Act and may not be used or otherwise diverted to cover any other expense of the Federal Government.
(2)
Exemption from apportionment— Notwithstanding any other provision of law, amounts received by the Mortgage Insurance Fund pursuant to any fees collected under this section shall not be subject to apportionment for the purposes of chapter 15 of title 31, United States Code, or under any other authority.
(e)
Reserve ratio goals for Mortgage Insurance Fund— The Corporation shall endeavor to ensure that the Mortgage Insurance Fund attains a reserve balance—
(1)
of 1.25 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 5 years of the FMIC certification date, and to strive to maintain such ratio thereafter, subject to subparagraph (B); and
(2)
of 2.50 percent of the sum of the outstanding principal balance of the covered securities for which insurance is being provided under this title within 10 years of the FMIC certification date, and to strive to maintain such ratio at all times thereafter.
(f)
Maintenance of reserve ratio; establishment of fees—
(1)
Establishment of fees— The Corporation shall charge and collect a fee, and may in its discretion increase or decrease such fee, in connection with any insurance provided under this title to—
(A)
achieve and maintain the reserve ratio goals established under subsection (e);
(B)
achieve such reserve ratio goals, if the actual balance of such reserve is below the goal amounts established under subsection (e); and
(C)
fund the operations of the Corporation.
(2)
Fee considerations— In exercising the authority granted under paragraph (1), the Corporation shall consider—
(A)
the expected operating expenses of the Mortgage Insurance Fund;
(B)
the risk of loss to the Mortgage Insurance Fund in carrying out the requirements under this Act;
(C)
the risk presented by, and the loss absorption capacity of, the credit enhancement that is provided on the pool of eligible mortgages collateralizing the covered security to be insured under this title;
(D)
economic conditions generally affecting the mortgage markets;
(E)
the extent to which the reserve ratio of the Mortgage Insurance Fund met—
(i)
the reserve ratio set for the preceding 12-month period; or
(ii)
the reserve ratio goals established in subsection (e); and
(F)
any other factor that the Corporation determines appropriate.
(3)
Fee Uniformity— The fee required under paragraph (1)—
(A)
shall be set at a uniform amount applicable to all institutions purchasing insurance under this title;
(B)
may not vary—
(i)
by geographic location; or
(ii)
by the size of the institution to which the fee is charged; and
(C)
may not be based on the volume of insurance to be purchased by an approved issuer.
(4)
Deposit into Mortgage Insurance Fund— Any fee amounts collected under this subsection shall be deposited in the Mortgage Insurance Fund.
(g)
Full Faith and Credit— The full faith and credit of the United States is pledged to the payment of all amounts from the Mortgage Insurance Fund which may be required to be paid under any insurance provided under this title.
(h)
Investments— Amounts in the Mortgage Insurance Fund that are not otherwise employed—
(1)
shall be invested in obligations of the United States; and
(2)
may not be invested in any covered security insured under this Act.

Sec. 204 Insurance

(a)
Authority— The Corporation shall, upon application and in exchange for a fee in accordance with section 203(f), insure the payment of principal and interest on a covered security with respect to losses that may be incurred on such security.
(b)
Precondition; ensuring placement of first loss capital— The Corporation shall develop standards and processes to ensure that prior to making any commitment to provide insurance under this section that private market holders have taken first loss position in a covered security and that such holders have sufficient capital to cover their risk-sharing obligations.
(c)
Cash payments; continued operations— In the event of a payment default on an eligible mortgage that collateralizes a covered security insured under this section that exceeds the first loss position assumed by a private market holder or that, in the case of an approved bond guarantor, if the guarantor has become insolvent, the Corporation shall—
(1)
pay, in cash when due, any shortfalls in payment of principal and interest under the eligible mortgage; and
(2)
continue to charge and collect any fees for the provision of insurance (in accordance with section 203(f)) relating to the covered security.
(d)
Full faith and credit— The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any insurance provided under this section.
(e)
Prohibition on Federal assistance— Notwithstanding any other provision of law, no Federal funds may be used to purchase or guarantee obligations of, issue lines of credit to, provide direct or indirect access to any financing provided by the United States Government to, or provide direct or indirect grants and aid to any private market holder of the first loss position on a covered security which, on or after the date of enactment of this Act, has defaulted on its obligations, is at risk of defaulting, or is likely to default, absent such assistance from the United States Government.

Sec. 205 Authority to protect taxpayers in unusual and exigent market conditions

(a)
In general— If the Corporation, upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development, determines that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the housing markets that could materially and severely disrupt the functioning of the housing finance system of the United States, the Corporation may, for a period not to exceed 6 months, provide insurance in accord with section 204 to any covered security regardless of whether such security has satisfied the requirements of section 202(a).
(b)
Considerations— In exercising the authority granted under subsection (a), the Corporation shall consider the severity of the conditions present in the housing markets and the risks presented to the Mortgage Insurance Fund in exercising such authority.
(c)
Limitation— The authority granted to the Corporation under subsection (a) may not be exercised more than once in any given 3-year period.

Sec. 206 General powers

(a)
Corporate powers— The Federal Mortgage Insurance Corporation shall have power—
(1)
to adopt, alter, and use a corporate seal, which shall be judicially noticed;
(2)
to enter into and perform contracts, leases, cooperative agreements, or other transactions, on such terms as it may deem appropriate, with any agency or instrumentality of the United States, or with any State, Territory, or possession, or the Commonwealth of Puerto Rico, or with any political subdivision thereof, or with any person, firm, association, or corporation;
(3)
to execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;
(4)
in its corporate name, to sue and to be sued, and to complain and to defend, in any court of competent jurisdiction, State or Federal, but no attachment, injunction, or other similar process, mesne or final, shall be issued against the property of the Corporation;
(5)
to conduct its business without regard to any qualification or similar statute in any State of the United States, including the District of Columbia, the Commonwealth of Puerto Rico, and the Territories and possessions of the United States;
(6)
to lease, purchase, or acquire any property, real, personal, or mixed, or any interest therein, to hold, rent, maintain, modernize, renovate, improve, use, and operate such property, and to sell, for cash or credit, lease, or otherwise dispose of the same, at such time and in such manner as and to the extent that it may deem necessary or appropriate;
(7)
to prescribe, repeal, and amend or modify, rules, regulations, or requirements governing the manner in which its general business may be conducted;
(8)
to accept gifts or donations of services, or of property, real, personal, or mixed, tangible, or intangible, in aid of any of its purposes; and
(9)
to do all things as are necessary or incidental to the proper management of its affairs and the proper conduct of its business.
(b)
Expenditures— Except as may be otherwise provided in this title, in chapter 91 of title 31, United States Code, or in other laws specifically applicable to Government corporations, the Corporation shall determine the necessity for, and the character and amount of its obligations and expenditures, and the manner in which they shall be incurred, allowed, paid, and accounted for.
(c)
Exemption from certain taxes— The Corporation, including its franchise, capital, reserves, surplus, mortgages or other security holdings, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority, except that any real property of the Corporation shall be subject to State, territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.
(d)
Exclusive use of name— No individual, association, partnership, or corporation, except the bodies corporate named under section 101, shall hereafter use the words “Federal Mortgage Insurance Corporation” or any combination of such words, as the name or a part thereof under which the individual, association, partnership, or corporation shall do business. Violations of the foregoing sentence may be enjoined by any court of general jurisdiction at the suit of the proper body corporate. In any such suit, the plaintiff may recover any actual damages flowing from such violation, and, in addition, shall be entitled to punitive damages (regardless of the existence or nonexistence of actual damages) of not exceeding $100 for each day during which such violation is committed or repeated.
(e)
Fiscal agents— The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for each of the bodies corporate named in section 101, for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or as fiduciary, and for the account of others.

Sec. 207 Exemptions

(a)
Securities exempt from SEC regulation—
(1)
In general— All covered securities insured or guaranteed by the Corporation shall, to the same extent as securities that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securities within the meaning of the laws administered by the Securities and Exchange Commission.
(2)
Conforming amendment— The first sentence of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended by inserting “or any covered security, as such term is defined under section 2(9) of the Housing Finance Reform and Taxpayer Protection Act of 2013;” after “Federal Reserve bank;”.
(b)
QRM exemption— Section 15G(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–11(e)) is amended—
(1)
in paragraph (3)(B)—
(A)
by striking “Association, the” and inserting “Association and the”; and
(B)
by striking “and the Federal home loan banks”; and
(2)
by adding at the end the following:

“(7) Covered securities insured by the Federal Mortgage Insurance Corporation—Notwithstanding any other provision of this section, the requirements of this section shall not apply to any covered security, as such term is defined under section 2(9) of the Housing Finance Reform and Taxpayer Protection Act of 2013, insured or guaranteed by the Federal Mortgage Insurance Corporation or any institution that is subject to the supervision of the Federal Mortgage Insurance Corporation.”

B Oversight of market participants

Sec. 211 Approval of private mortgage insurers

(a)
Standards for approval of private mortgage insurers—
(1)
In general— The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of private mortgage insurers to provide private mortgage insurance on eligible mortgages.
(2)
Required standards— The standards required under paragraph (1) shall include—
(A)
the financial history and condition of the insurer;
(B)
the adequacy of the insurer's capital structure, including whether the insurer has sufficient capital to cover the first loss insurance obligations it assumes under this Act and that might be incurred in a period of economic stress, including, but not limited to, any period of economic stress that would result in a 30 percent (or greater) national home price decline;
(C)
the general character and fitness of the management of the insurer, including compliance history with Federal and State laws;
(D)
the risk presented by such insurer to the Mortgage Insurance Fund;
(E)
the adequacy of insurance and fidelity coverage of the insurer;
(F)
a requirement that the insurer submit audited financial statements to the Director; and
(G)
any other standard the Corporation determines necessary or appropriate.
(b)
Application and approval—
(1)
Application process— The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of private mortgage insurers under this section.
(2)
Approval— The Corporation may approve any application made pursuant to paragraph (1) provided the private mortgage insurer meets the standards adopted under subsection (a).
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of newly approved private mortgage insurers; and
(B)
maintain an updated list of approved private mortgage insurers on the website of the Corporation.
(c)
Review, suspension, and revocation of approved status—
(1)
In general— The Corporation may review the status of any approved private mortgage insurer if the Corporation is notified of or becomes aware of any violation by the insurer of this Act or the rules promulgated pursuant to this Act.
(2)
Suspension or Revocation—
(A)
Corporation authority— If the Corporation determines, in a review pursuant to paragraph (1), that an approved private mortgage insurer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such insurer.
(B)
Rule of construction— The suspension or revocation of an approved private mortgage insurer's approved status under this paragraph shall have no effect on the status of any covered security.
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of any approved private mortgage insurers who lost their approved status; and
(B)
maintain an updated list of such insurers on the website of the Corporation.
(d)
Appeals—
(1)
In general—
(A)
Appeals of denials of application— A private mortgage insurer who submits an application under subsection (b)(1) to become an approved private mortgage insurer may appeal a decision of the Corporation denying such application.
(B)
Appeals of denials of benefits or suspensions of participation— An approved private mortgage insurer may appeal a decision of the Corporation suspending or revoking the approved status of such insurer.
(2)
Filing of appeal— Any insurer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.
(3)
Final determination— The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).
(e)
Avoidance of conflicts of interest— With respect to any eligible mortgage collateralizing a covered security insured under this Act, an approved private mortgage insurer may not provide insurance both—
(1)
in satisfaction of the credit enhancement required under section 2(11)(C); and
(2)
to cover the first loss position of private market holders of such covered security.

Sec. 212 Approval of servicers

(a)
Standards for approval of servicers—
(1)
In general— The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of servicers to administer eligible mortgages, including standards with respect to—
(A)
the collection and forwarding of principal and interest payments;
(B)
the maintenance of escrow accounts;
(C)
the collection and payment of taxes and insurance premiums;
(D)
the maintenance of records on eligible mortgages;
(E)
the establishment of foreclosure loss mitigation programs that seek to enhance investor value and prevent, to greatest extent possible, the need to trigger any claim on insurance offered by the Corporation pursuant to this title;
(F)
the advancement of principal and interest payments to investors in the case of a delinquency by a borrower until such time as the borrower has made all payments in arrears or the property securing the eligible mortgage has been liquidated; and
(G)
implementing the terms of any loss mitigation and foreclosure prevention as required by a uniform securitization agreement developed under section 223.
(2)
Additional required standards— The standards required under paragraph (1) shall also include—
(A)
the financial history and condition of the servicer;
(B)
the general character and fitness of the management of the servicer, including compliance history with Federal and State laws;
(C)
the risk presented by such servicer to the Mortgage Insurance Fund;
(D)
a requirement that the servicer submit audited financial statements to the Corporation; and
(E)
any other standard the Corporation determines necessary or appropriate.
(3)
Coordination with other regulators— In developing the standards required under paragraph (1), the Corporation shall—
(A)
coordinate with the Bureau of Consumer Financial Protection; and
(B)
to the extent the Corporation determines practical and appropriate, shall coordinate with the other Federal banking agencies.
(b)
Application and approval—
(1)
Application process— The Corporation shall establish an application process—
(A)
in such form and manner and requiring such information as the Corporation may require, for the approval of servicers under this section; and
(B)
that does not discriminate against or otherwise disadvantage small servicers.
(2)
Approval— The Corporation may approve any application made pursuant to paragraph (1) provided the servicer meets the standards adopted under subsection (a).
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of newly approved servicers; and
(B)
maintain an updated list of approved servicers on the website of the Corporation.
(c)
Review, suspension, and revocation of approved status—
(1)
In general— The Corporation may review the status of any approved servicer if the Corporation is notified of or becomes aware of any violation by the servicer of this Act or the rules promulgated pursuant to this Act, including any failure by an approved servicer to comply with terms set forth in any uniform securitization agreement developed under section 223.
(2)
Suspension or Revocation—
(A)
Corporation authority— If the Corporation determines, in a review pursuant to paragraph (1), that an approved servicer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such servicer.
(B)
Rule of construction— The suspension or revocation of an approved servicer's approved status under this paragraph shall have no effect on the status of any covered security.
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of any approved servicers who lost their approved status; and
(B)
maintain an updated list of such servicers on the website of the Corporation.
(d)
Appeals—
(1)
In general—
(A)
Appeals of denials of application— A servicer who submits an application under subsection (b)(1) to become an approved servicer may appeal a decision of the Corporation denying such application.
(B)
Appeals of denials of benefits or suspensions of participation— An approved servicer may appeal a decision of the Corporation suspending or revoking the approved status of such servicer.
(2)
Filing of appeal— Any servicer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.
(3)
Final determination— The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).
(e)
Petitions for change of servicer by private market holders— The Corporation shall develop a process by which private market holders of the first loss position in a covered security may petition the Corporation for a change in approved servicers if the private market holders can demonstrate that their current approved servicer has failed to appropriately protect their investment, including by failing to meet any standard identified under subsection (a)(1).

Sec. 213 Approval of issuers

(a)
Standards for approval of issuers—
(1)
In general— The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of issuers to issue covered securities, including standards with respect to an issuer's ability to—
(A)
aggregate eligible mortgage loans into pools;
(B)
securitize eligible mortgage loans for sale to private investors as a covered security;
(C)
transfer investment risk and credit to private market participants in accordance with the risk-sharing mechanisms developed by the Corporation under section 202;
(D)
ensure equitable access to the secondary mortgage market for covered securities for all institutions regardless of size or geographic location;
(E)
create mechanisms for multi-lender pools; and
(F)
ensure that eligible mortgage loans that collateralize a covered security insured under this title are originated in compliance with the requirements of this Act.
(2)
Additional required standards— The standards required under paragraph (1) shall also include—
(A)
the financial history and condition of the issuer;
(B)
the adequacy of the capital structure of the issuer;
(C)
the general character and fitness of the management of the issuer, including compliance history with Federal and State laws;
(D)
the risk presented by such issuer to the Mortgage Insurance Fund;
(E)
the adequacy of insurance and fidelity coverage of the issuer;
(F)
a requirement that the issuer submit audited financial statements to the Corporation;
(G)
the capacity of the issuer to secure first loss credit enhancement; and
(H)
any other standard the Corporation determines necessary or appropriate.
(b)
Application and approval—
(1)
Application process—
(A)
In general— The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of issuers under this section.
(B)
Application process for insured depository institutions— If an insured depository institution seeks to become an approved issuer under this section, such institution may only submit its application via a separately capitalized affiliate or subsidiary.
(2)
Approval— The Corporation—
(A)
may approve—
(i)
any application made pursuant to paragraph (1) provided the issuer meets the standards adopted under subsection (a); and
(ii)
any application to become an approved issuer made by the Federal Home Loan Bank System; and
(B)
shall ensure that at least one issuer approved to issue covered securities under this section is dedicated to serving the securitization needs of credit unions and community and mid-size banks without securitization capabilities.
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of newly approved issuers; and
(B)
maintain an updated list of approved issuers on the website of the Corporation.
(c)
Federal Home Loan Bank System—
(1)
In general— If the Federal Home Loan Bank System is approved by the Corporation to become an approved issuer under this section, the Corporation shall—
(A)
develop a process by which each individual Federal Home Loan Bank may elect not to engage or otherwise contribute to any activity practiced by the Federal Home Loan Bank System as an approved issuer;
(B)
ensure that, notwithstanding section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431), any covered securities issued by the Federal Home Loan Bank System as an approved issuer are not issued as consolidated Federal Home Loan Bank debentures and are explicitly designated or otherwise treated as not being the joint and several obligations of any individual Federal Home Loan Bank that has made an election under subparagraph (A); and
(C)
ensure that in establishing the capital standards set forth under subsection (a)(2)(B) with respect to the Federal Home Loan Bank System, that such standards shall—
(i)
not be applicable to any individual Federal Home Loan Bank that has made an election under subparagraph (A);
(ii)
be based on the volume of eligible mortgage loan originations made by the Federal Home Loan Banks that have not made an election under subparagraph (A); and
(iii)
not adversely impact the traditional liquidity and advance business of the Federal Home Loan Banks or the Federal Home Loan Bank System.
(2)
Federal Home Loan Bank Act—
(A)
Amendment— Section 12 of the Federal Home Loan Bank Act (12 U.S.C. 1432) is amended by adding at the end the following:

“(c) Subject to such regulations as may be prescribed by the Corporation, one or more Federal Home Loan Banks may establish a subsidiary. Any subsidiary established under this subsection shall be subject to supervision by the Office of Federal Home Loan Bank Supervision of the Corporation and shall be restricted to engaging in activities related to being an approved issuer, as that term is defined under section 2(2) of the Housing Finance Reform and Taxpayer Protection Act of 2013.”

(B)
Effective date— The amendment made by subparagraph (A) shall take effect on the transfer date.
(d)
Review, suspension, and revocation of approved status—
(1)
In general— The Corporation may review the status of any approved issuer if the Corporation is notified of or becomes aware of any violation by the issuer of this Act or the rules promulgated pursuant to this Act.
(2)
Suspension or Revocation—
(A)
Corporation authority— If the Corporation determines, in a review pursuant to paragraph (1), that an approved issuer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such issuer.
(B)
Rule of construction— The suspension or revocation of an approved issuer's approved status under this paragraph shall have no effect on the status of any covered security.
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of any approved issuers who lost their approved status; and
(B)
maintain an updated list of such issuers on the website of the Corporation.
(e)
Appeals—
(1)
In general—
(A)
Appeals of denials of application— An issuer who submits an application under subsection (b)(1) to become an approved issuer may appeal a decision of the Corporation denying such application.
(B)
Appeals of denials of benefits or suspensions of participation— An approved issuer may appeal a decision of the Corporation suspending or revoking the approved status of such issuer.
(2)
Filing of appeal— Any issuer who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.
(3)
Final determination— The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).
(f)
Limitation on market share—
(1)
In general— The Corporation may not enter into any contract, covenant, or other agreement with an approved issuer, if such contract, covenant, or agreement would provide the issuer a share of the covered security issuer market in excess of 15 percent of the total market, as such market is measured by the total outstanding principal balance at origination of eligible mortgages collateralizing covered securities issued in the previous 12-month period.
(2)
Exception— The limitation set forth under paragraph (1) shall not apply to—
(A)
an approved issuer described under subsection (b)(2)(A)(ii);
(B)
the FMIC Mutual Securitization Company;
(C)
any approved issuer which securitizes only eligible mortgage loans originated by the issuer or an affiliate of the issuer; or
(D)
any approved issuer to which the Corporation grants a waiver pursuant to paragraph (3).
(3)
Waiver— The Corporation may, during the 3-year period beginning on the FMIC certification date, grant a waiver from the limitation set forth under paragraph (1) to an approved issuer if the Corporation determines that the number of approved issuers is insufficient, such that imposition of the limitation would adversely affect the availability of mortgage credit.
(g)
Limited authority To hold eligible mortgage loans— An approved issuer may, for a period not to exceed 6-months, hold—
(1)
eligible mortgage loans on the balance sheet of such issuer; and
(2)
the first loss position in a covered security for purposes of obtaining insurance under this title.

Sec. 214 Approval of bond guarantors

(a)
Standards for approval of bond guarantors—
(1)
In general— The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of bond guarantors to guarantee the timely payment of principal and interest on securities collateralized by eligible mortgages and insured by the Corporation.
(2)
Required standards— The standards required under paragraph (1) shall include—
(A)
the financial history and condition of the guarantor;
(B)
that the guarantor maintain a minimum capital level equal to not less than 10 percent of the unpaid principal balance of outstanding mortgage-backed securities for which the guarantor is providing insurance, net of any transactions, including derivative transactions, repurchase agreements, reverse repurchase agreements, securities lending transactions, or securities borrowing transactions, that in the determination of the Corporation are used by the guarantor to hedge or mitigate against credit risk, provided that any such hedging transaction does not diminish the total amount of loss absorption capital in the secondary mortgage market that stands in front of the insurance provided by the Corporation under this title;
(C)
the general character and fitness of the management of the guarantor, including compliance history with Federal and State laws;
(D)
the risk presented by such guarantor to the Mortgage Insurance Fund;
(E)
the adequacy of insurance and fidelity coverage of the guarantor;
(F)
a requirement that the guarantor submit audited financial statements to the Director;
(G)
a requirement that the guarantor meet a minimum tangible common equity level, or other minimum capital threshold as the Corporation determines necessary; and
(H)
any other standard the Corporation determines necessary or appropriate.
(b)
Rule of construction— Any covered security issued by an approved issuer and insured by an approved bond guarantor shall be deemed to have satisfied the credit-risk sharing requirements under section 202(a)(1) with respect to the eligibility of that security to obtain insurance under this title.
(c)
Application and approval—
(1)
Application process—
(A)
In general— The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of bond guarantors under this section.
(B)
Application process by insured depository institutions— If an insured depository institution seeks to become an approved bond guarantor under this section, such institution may only submit its application via a separately capitalized affiliate or subsidiary.
(2)
Approval— The Corporation may approve any application made pursuant to paragraph (1) provided the bond guarantor meets the standards adopted under subsection (a).
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of newly approved bond guarantors; and
(B)
maintain an updated list of approved bond guarantors on the website of the Corporation.
(d)
Review, suspension, and revocation of approved status—
(1)
In general— The Corporation may review the status of any approved bond guarantor if the Corporation is notified of or becomes aware of any violation by the insurer of this Act or the rules promulgated pursuant to this Act.
(2)
Suspension or Revocation—
(A)
Corporation authority— If the Corporation determines, in a review pursuant to paragraph (1), that an approved bond guarantor no longer meets the standards for approval, the Corporation shall revoke the approved status of such guarantor.
(B)
rule of construction— The revocation of an approved bond guarantor's approved status under this paragraph shall have no effect on the status of any covered security.
(3)
Publication— The Corporation shall—
(A)
publish in the Federal Register a list of any approved bond guarantors who lost their approved status; and
(B)
maintain an updated list of such guarantors on the website of the Corporation.
(e)
Appeals—
(1)
In general—
(A)
Appeals of denials of application— A bond guarantor who submits an application under subsection (c)(1) to become an approved bond guarantor may appeal a decision of the Corporation denying such application.
(B)
Appeals of denials of benefits or suspensions of participation— An approved bond guarantor may appeal a decision of the Corporation suspending or revoking the approved status of such guarantor.
(2)
Filing of appeal— Any bond guarantor who files an appeal under paragraph (1) shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed.
(3)
Final determination— The Corporation shall make a final determination with respect to an appeal under paragraph (1) not later than 180 days after the date on which the appeal is filed under paragraph (2).
(f)
Limitations on approved bond guarantors— With respect to any eligible mortgage collateralizing a covered security insured under this Act, an approved bond guarantor may not provide insurance—
(1)
in satisfaction of the credit enhancement required under section 2(11)(C) or as an approved private mortgage insurer pursuant to section 211; and
(2)
as an approved bond guarantor under this section.
(g)
Permission To carry out other activities— Nothing in this Act prohibits an approved bond guarantor from being or controlling an approved issuer, provided that each issuer and bond guarantor, independent of each other, meet the approval standards established by the Corporation under this title.

Sec. 215 Authority to establish FMIC Mutual Securitization Company

(a)
In general— The Corporation shall establish a mutual corporation to be known as the “FMIC Mutual Securitization Company”.
(b)
Purpose— The purpose of the FMIC Mutual Securitization Company is to—
(1)
develop, securitize, sell, and otherwise meet the issuing needs of credit unions, community and mid-size banks, and non-depository mortgage originators with respect to covered securities; and
(2)
purchase from its member participants for cash, on a single loan basis, eligible mortgage loans to securitize in a covered security.
(c)
Sale of necessary technology— Upon the FMIC certification date, the enterprises shall sell to the FMIC Mutual Securitization Company any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service of an enterprise that the Corporation determines necessary for the FMIC Mutual Securitization Company to carry out its activities and operations.
(d)
Designation as an approved issuer— The FMIC Mutual Securitization Company shall be an approved issuer for purposes of section 213.
(e)
Eligibility— Eligibility to participate as a member in the FMIC Mutual Securitization Company shall be limited to—
(1)
insured depository institutions having less than $15,000,000,000 in total consolidated assets at the time of the institution's initial participation in the Company; or
(2)
any non-depository mortgage originator having a minimum net worth of $2,500,000.
(f)
Governance—
(1)
Recognition of important role of smaller institutions— The Corporation shall take all necessary steps to ensure that the governance provisions of the FMIC Mutual Securitization Company reflect the important role in the mortgage market played by the small and mid-sized member participants of the FMIC Mutual Securitization Company.
(2)
Establishment of position of Director— There is established the position of the Director of the FMIC Mutual Securitization Company who shall be the head of the Company.
(3)
Board of Directors—
(A)
In general— The management of the FMIC Mutual Securitization Company shall be vested in a Board of Directors (hereafter referred to as the “Mutual Board”), which shall include representatives of member participants of the Company, including representatives of—
(i)
mortgage bankers;
(ii)
community banks; and
(iii)
credit unions.
(B)
Initial appointment— The Corporation shall make initial appointments of the members of the Mutual Board. Each such initial appointment shall be for a term 1 year.
(C)
Appointments— Following the initial 1-year appointment of the members of the Mutual Board, member participants in the FMIC Mutual Securitization Company shall elect the members of the Mutual Board from within the membership of the Company.
(D)
Administration— The Mutual Board shall administer the affairs of the FMIC Mutual Securitization Company fairly and impartially and without discrimination.
(4)
No preferences for size— Member participants of the FMIC Mutual Securitization Company shall have equal voting rights on any matters before the Company, regardless of the size of the individual member participant.
(g)
Approval of member participants—
(1)
In general— The Mutual Board shall develop standards and procedures to approve the application of member participants in the FMIC Mutual Securitization Company.
(2)
Content of standards— The standards required under paragraph (1) shall include standards relating to the safety and soundness of prospective member participants, including standards regarding the underwriting practices of such prospective members.
(3)
Coordination with other regulators—
(A)
Consultation— In approving any prospective member to become a member participant in the FMIC Mutual Securitization Company, the Mutual Board may consult and share information with the primary prudential regulator of the prospective member.
(B)
Privilege preserved— Information shared pursuant to subparagraph (A) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that a prospective member may claim with respect to such information under Federal or State law as to any person or entity other than the Mutual Board or its primary prudential regulator.
(C)
Rule of construction— No provision of this subsection may be construed as implying or establishing that—
(i)
any prospective member waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or
(ii)
any prospective would waive any privilege applicable to any information by submitting the information directly to its primary prudential regulator, but for this subsection.
(h)
Funding authority—
(1)
Authority to establish membership fees— The Mutual Board shall have the authority to charge and collect fees, and may in its discretion increase or decrease such fee, on its member participants for membership in the FMIC Mutual Securitization Company, including to cover the costs of—
(A)
the initial capitalization of the Company;
(B)
the purchase of any function, activity, infrastructure, property, including intellectual property, platform, or any other object or service from an enterprise pursuant to subsection (c); and
(C)
the continued operation of the Company.
(2)
Limitation— The fees authorized under paragraph (1)—
(A)
shall be equitably assessed; and
(B)
may be based on the volume of eligible mortgages that the member participant sells to the FMIC Mutual Securitization Company.
(i)
Coordination of servicer approval— The Mutual Board may coordinate with the Corporation to facilitate the application process for its member participants to become approved servicers of the Corporation pursuant to section 212.

Sec. 216 Additional authority relating to oversight of market participants

In carrying out its authorities under this subtitle, the Corporation may, in its discretion, develop, publish, and adopt such other additional standards or requirements as the Corporation determines necessary to ensure—
(1)
competition among approved private mortgage insurers, servicers, issuers, and bond guarantors and other market participants in the secondary mortgage market;
(2)
competitive pricing among approved private mortgage insurers, servicers, issuers, and bond guarantors and other market participants in the secondary mortgage market; and
(3)
liquidity, transparency, and access to mortgage credit in the secondary mortgage market.

Sec. 217 Civil money penalties

(a)
Authority— In addition to any suspension or revocation of the approved status of an approved private mortgage insurer, servicer, issuer, or bond guarantor under this subtitle, the Corporation may, in its discretion, impose a civil money penalty on any such approved private mortgage insurer, servicer, issuer, or bond guarantor that has failed to comply with or otherwise violates—
(1)
any standard adopted by the Corporation pursuant to this subtitle; or
(2)
any other requirement or provision of this Act, or any order, condition, rule, or regulation issued pursuant to this Act, applicable to such private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be.
(b)
Procedures—
(1)
Establishment— The Corporation shall establish standards and procedures governing the imposition of civil money penalties under this section. Such standards and procedures—
(A)
shall provide for the Corporation to notify the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, in writing of the determination of the Corporation to impose the penalty, which shall be made on the record;
(B)
shall provide for the imposition of a penalty only after the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, has been given an opportunity for a hearing on the record; and
(C)
may provide for review by the Corporation of any determination or order, or interlocutory ruling, arising from a hearing.
(2)
Factors determining amount of penalty— In determining the amount of a penalty under this section, the Corporation shall give consideration to factors including—
(A)
the gravity of the offense;
(B)
any history of prior offenses;
(C)
ability to pay the penalty;
(D)
injury to the public;
(E)
benefits received;
(F)
deterrence of future violations; and
(G)
such other factors as the Corporation may determine, by regulation, to be appropriate.
(c)
Action To collect penalty— If the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, fails to comply with an order by the Corporation imposing a civil money penalty under this section, the Corporation may bring an action in the United States District Court for the District of Columbia to obtain a monetary judgment against the approved private mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, and such other relief as may be available. The monetary judgment may, in the court's discretion, include the attorneys' fees and other expenses incurred by the United States in connection with the action. In an action under this subsection, the validity and appropriateness of the order imposing the penalty shall not be subject to review.
(d)
Settlements— The Corporation may compromise, modify, or remit any civil money penalty which may be, or has been, imposed under this section.
(e)
Deposit of Penalties— The Corporation shall use any civil money penalties collected under this section to help fund the Mortgage Insurance Fund established under section 203.

Sec. 218 Protection of privilege and other matters relating to disclosures by market participants

(a)
Information sharing and maintenance of privilege— The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—
(1)
in section 11(t)(2)(A) (12 U.S.C. 1821(t)(2)(A)), by inserting after clause (v) the following:

“(vii) The Federal Mortgage Insurance Corporation.”

(2)
in section 18(x) (12 U.S.C. 1828(x))—
(A)
by inserting “the Federal Mortgage Insurance Corporation,” before “any Federal banking agency” each place that term appears; and
(B)
by striking “such agency” each place that term appears and inserting “Corporation, agency”.
(b)
Permissible consultation with Federal banking agencies—
(1)
In general— Pursuant to its authority under section 103(c), to facilitate the consultive process, the Corporation may share information with the Federal banking agencies, or any individual Federal banking agency, or any State bank supervisor, or foreign banking authority, on a one-time, regular, or periodic basis as determined by the Corporation regarding the capital, asset and liabilities, financial condition, risk management practices or any other practice of any approved private mortgage insurer, servicer, issuer, or bond guarantor.
(2)
Privilege preserved— Information shared by the Corporation pursuant to paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege or confidential status that any approved private mortgage insurer, servicer, issuer, or bond guarantor or any other person may claim with respect to such information under Federal or State law as to any person or entity other than such agencies, agency, supervisor, or authority.
(3)
Rule of construction— No provision of this subsection may be construed as implying or establishing that—
(A)
any person waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply; or
(B)
any person would waive any privilege applicable to any information by submitting the information directly to the Federal banking agencies, or any individual Federal banking agency, or any State bank supervisor, or foreign banking authority, but for this subsection.

C Transparency in market operations

Sec. 221 Review of loan documents; disclosures

(a)
In general— The Corporation shall, by rule—
(1)
require that approved issuers—
(A)
grant access to private market investors seeking to take the first loss position in a covered security to all—
(i)
documents relating to eligible mortgage loans collateralizing that covered security; and
(ii)
servicing reports of the approved servicer relating to such mortgages; and
(B)
disclose any other material information that a reasonable investor would want to know, and make no material omission of such information, relating to eligible mortgage loans collateralizing a covered security; and
(2)
establish the timing, frequency, and manner in which such access and disclosures are made.
(b)
Privacy protections— In prescribing the rules required under this section, the Corporation 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 rules shall expressly prohibit the identification of specific borrowers.

Sec. 222 Investor immunity

Any private market investor that has taken the first loss position in a covered security or that has otherwise invested in any covered security insured under this Act shall have immunity and protection from civil liability under Federal and State law, and no cause of action may be brought under Federal or State law against such investor, with respect to whether or not eligible mortgages that collateralize a covered security insured under this Act have complied with the requirements of this Act, including, but not limited to, with respect to any underwriting requirements applicable to such mortgage, any representations or warranties made by an approved issuer or an approved bond guarantor with respect to such mortgages, or whether or not the terms of any uniform securitization agreement have been met.

Sec. 223 Uniform securitization agreements

(a)
In general— The Corporation shall develop, adopt, and publish standard uniform securitization agreements for covered securities which are insured under this Act.
(b)
Required content— The standard uniform securitization agreements required to be developed under subsection (a) shall include terms relating to—
(1)
pooling and servicing, including the development of uniform standards and practices—
(A)
regarding remittance schedules and payment delays; and
(B)
permitting the transfer of servicing rights, if such transfer is determined to be in the best financial interest of the investor, as such interest is calculated on a net present value basis;
(2)
representations and warranties, including representations and warranties as to compliance or conformity with the requirements of this Act;
(3)
indemnification and remedies, including for the restitution or indemnification of the Corporation with respect to early term delinquencies of eligible mortgages collateralizing a covered security;
(4)
the qualification, responsibilities, and duties of trustees; and
(5)
any other terms or standards the Corporation determines necessary or appropriate.
(c)
Defining representation and warranty violations— In developing the uniform securitization agreements required under subsection (a), the Corporation shall also develop, adopt, and publish clear and uniform standards that define and illustrate what actions, or omissions to act, comprise a violation of the representations and warranties clauses that are made a part of such agreements.
(d)
Consultation— The Corporation shall work with industry groups, including servicers, originators, issuers, and mortgage investors to develop the uniform securitization agreements required under subsection (a).

Sec. 224 Uniform mortgage database

(a)
Uniform Mortgage Database— The Corporation shall establish, operate, and maintain a database for the collection, public use, and dissemination of uniform loan level information on eligible mortgages relating to—
(1)
loan characteristics;
(2)
borrower information;
(3)
the property securing the eligible mortgages;
(4)
loan data required at the time of application for insurance from the Corporation under this title;
(5)
the quality and consistency of appraisal and collateral data on eligible mortgages;
(6)
industry-wide servicing data standards; and
(7)
such other data, datasets, information, facts, or measurements as the Corporation determines appropriate to improve and enhance loan quality and operational efficiencies within the secondary mortgage market.
(b)
Considerations— In establishing the database required under subsection (a), the Corporation shall take into consideration, build upon, and adopt to the extent the Corporation determines appropriate, the existing data standards set forth under the Uniform Mortgage Data Program initiative established by the Federal Housing Finance Agency.
(c)
Regulations— The Corporation shall, by regulation—
(1)
establish the manner and form by which any loan level information collected under subsection (a) may be accessed by the public, including whether or not to establish a fee for such access;
(2)
require that such loan level information be made available to the public in a uniform manner, in a form designed for ease and speed of access, ease and speed of downloading, and ease and speed of use; and
(3)
ensure the protection of any personally identifiable information contained in any information, or mix of information, collected and made available for public access.
(d)
Monthly update— The database required under subsection (a) shall be updated not less frequently than once a month.

Sec. 225 Electronic registration of eligible mortgages

(a)
Establishment of electronic registration system— The Corporation shall establish, operate, and maintain an electronic registry system for eligible mortgages that collateralize a covered security insured under this Act in order to automate, centralize, standardize, and improve the process of tracking changes in servicing rights and beneficial ownership interests in such eligible mortgages.
(b)
Considerations— In establishing the electronic registry system required under subsection (a), the Corporation shall take into consideration, build upon, and adopt to the extent the Corporation determines appropriate, any existing efforts of the Federal Housing Finance Agency or expertise among the private sector to develop a sound, efficient system for document custody and electronic registration of mortgages, notes, titles, and liens.

D FMIC Structure

Sec. 231 Office of Underwriting

(a)
Establishment— There is established within the Federal Mortgage Insurance Corporation an Office of Underwriting which shall be headed by the Deputy Director of Underwriting, who shall be appointed by the Board of Directors.
(b)
Responsibilities— The Office of Underwriting shall ensure, through oversight, analysis, and examination, that eligible mortgages that collateralize a covered security insured under this Act comply with the requirements of this Act, including with respect to—
(1)
the submission of complete and accurate loan data on eligible mortgages;
(2)
the identification of ineligible mortgage loans;
(3)
assisting lenders with originating high-quality, lower-risk eligible mortgages; and
(4)
any other activity that the Director determines appropriate.

Sec. 232 Office of Securitization

(a)
Establishment— There is established within the Federal Mortgage Insurance Corporation an Office of Securitization which shall be headed by the Deputy Director of Securitization, who shall be appointed by the Board of Directors.
(b)
Responsibilities—
(1)
In general— The Office of Securitization shall—
(A)
oversee and supervise the common securitization platform developed by the business entity announced by the Federal Housing Finance Agency and established by the enterprises, including by requiring that the platform have system capabilities to permit the issuance of multi-lender covered securities;
(B)
ensure that credit unions, community and mid-size banks, and small non-depository lenders have equitable access to any such platform, including through the development and facilitation of options for multi-lender pools of eligible mortgages to be securitized and issued as covered securities through such platform; and
(C)
coordinate and consult with the Federal Home Loan Bank System to establish a securitization platform that addresses the needs of its members.
(2)
Rules for use of common securitization platform—
(A)
In general— The Corporation, acting through the Office of Securitization, may promulgate rules—
(i)
regarding the use of the common securitization platform described under paragraph (1)(A); and
(ii)
to permit securities other than covered securities to be issued through such platform for reasonable compensation.
(B)
Content of rules— Any rule that may be promulgated under subparagraph (A) may include a requirement that any security to be issued through the common securitization platform be subject to a uniform securitization agreement developed under section 223.
(c)
Establishment of database To provide notice to different classes of lien holders— The Office of Securitization shall establish, operate, and maintain a database that—
(1)
can be accessed by any holder of a lien on an eligible mortgage;
(2)
identifies and tracks if a junior lien or any other subordinate lien has been issued on the property securing an eligible mortgage;
(3)
notifies, to the extent feasible, any senior or first lien holder of the existence of such junior or subordinate lien; and
(4)
informs—
(A)
the senior or first lien holder of the monthly performance of the junior or subordinate lien; and
(B)
the junior or subordinate lien holder of the monthly performance of the senior or first lien.

Sec. 233 Office of Federal Home Loan Bank Supervision

(a)
Establishment— There is established within the Federal Mortgage Insurance Corporation an Office of Federal Home Loan Bank Supervision which shall be headed by the Deputy Director of Federal Home Loan Bank Supervision, who shall be appointed by the Board of Directors.
(b)
Responsibilities— The Office of Federal Home Loan Bank Supervision shall—
(1)
oversee, coordinate, and supervise the Federal Home Loan Banks and the Federal Home Loan Bank System, including the transition of all activities transferred to the Corporation pursuant to section 301; and
(2)
supervise any authorized subsidiary of one or more Federal Home Loan Banks that is approved as an approved issuer pursuant to section 213(b)(2)(A)(ii), including with respect to the initial capitalization of any such subsidiary.