,i #aacth ,,congress #ast ,session ,h4 ,r4 #ahi ,,in ,,the ,,house ,,of ,,representatives ,january #d1 #bjac ,ms4 ,kaptur introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to prohibit ,fannie ,mae1 ,freddie ,mac1 and ,ginnie ,mae from owning or guaranteeing any mortgage that is assigned to the ,mortgage ,electronic ,registration ,systems or for which ,,mers is the mortgagee of record4 #a4 ,short title ,this ,act may be cited as the ,transparency and ,security in ,mortgage ,registration ,act of #bjac4 #b4 ,prohibition on guaranteeing ,,mers mortgages 7a7 ,fannie ,mae and ,freddie ,mac 7#a7 ,fannie ,mae ,section #cjb7;b7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agag7;b77 is amended by adding at the end the following new paragraph3 7#g7 7,a7 ,after the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac1 the corporation may not purchase1 acquire1 newly lend on the security of1 newly invest in securities consisting of1 or otherwise newly deal in any ,,mers mortgage or mortgages4 7,b7 ,after the expiration of the period under subparagraph 7,c71 ,,mers shall not be the named mortgagee or mortgagee of record on any mortgage owned1 guaranteed1 or securitized by the corporation4 ,not later than the expiration of such period1 the corporation shall require that all mortgage loans owned1 guaranteed1 or securitized at such time by the corporation and on which ,,mers is the named mortgagee or mortgagee of record shall be assigned to the servicer1 holder1 or creditor1 as defined by the guidelines of the corporation4 ,the corporation shall not reimburse the servicer1 holder1 or creditor for any expense incurred in the carrying out or recording such an assignment4 7,c7 7i7 ,except as provided in clause 7ii71 the period under this subparagraph is the #f-month period beginning on the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac4 7ii7 ,in the case of any mortgage owned1 guaranteed1 or securitized by the corporation for which the servicer1 holder1 or creditor has demonstrated to the corporation1 in accordance with standards established by the ,director of the ,federal ,housing ,finance ,agency1 that compliance with subparagraph 7,b7 by the expiration of such #f-month period will cause a severe threat to the continued financial viability of such entity1 the period under this subparagraph shall be the period that begins on such date of enactment and has such duration as determined by the corporation1 in accordance with standards established by the ,director1 but in no case has a duration longer than #ab months4 7,d7 ,not later than the expiration of the #f-month period referred to in subparagraph 7,c77i71 the corporation shall submit a report detailing its compliance with subparagraph 7,b7 to the ,congress1 the ,director of the ,federal ,housing ,finance ,agency1 the ,financial ,stability ,oversight ,council1 and the ,director of the ,bureau of ,consumer ,financial ,protection of the ,federal ,reserve ,system1 which shall describe any extensions of the period for compliance with subparagraph 7,b7 granted pursuant to subparagraph 7,c74 7,e7 ,for purposes of this paragraph1 the following definitions shall apply3 7i7 ,the term ,,mers means the ,mortgage ,electronic ,registration ,systems1 ,inc41 or any successor entity of such corporation4 7ii7 ,the term ,,mers mortgage means any mortgage-- 7,i7 for which the ,,mers is1 or was at any time1 the original or nominal mortgagee or mortgagee of record under the mortgage2 7,,ii7 that is1 or was at any time1 assigned to or recorded in the ,,mers2 or 7,,iii7 for which the ,,mers is1 or was at any time1 acting as nominee in the county land records for the lender or servicer of the mortgage4 4 7#b7 ,freddie ,mac ,section #cje7;a7 of the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77 is amended by adding at the end the following new paragraph3 7#f7 7,a7 ,after the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac1 the ,corporation may not purchase1 acquire1 newly lend on the security of1 newly invest in securities consisting of1 or otherwise newly deal in any ,,mers mortgage or mortgages4 7,b7 ,after the expiration of the period under subparagraph 7,c71 ,,mers shall not be the named mortgagee or mortgagee of record on any mortgage owned1 guaranteed1 or securitized by the ,corporation4 ,not later than the expiration of such period1 the ,corporation shall require that all mortgage loans owned1 guaranteed1 or securitized at such time by the ,corporation and on which ,,mers is the named mortgagee or mortgagee of record shall be assigned to the servicer1 holder1 or creditor1 as defined by the guidelines of the ,corporation4 ,the ,corporation shall not reimburse the servicer1 holder1 or creditor for any expense incurred in the carrying out or recording such an assignment4 7,c7 7i7 ,except as provided in clause 7ii71 the period under this subparagraph is the #f-month period beginning on the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac4 7ii7 ,in the case of any mortgage owned1 guaranteed1 or securitized by the ,corporation for which the servicer1 holder1 or creditor has demonstrated to the ,corporation1 in accordance with standards established by the ,director of the ,federal ,housing ,finance ,agency1 that compliance with subparagraph 7,b7 by the expiration of such #f-month period will cause a severe threat to the continued financial viability of such entity1 the period under this subparagraph shall be the period that begins on such date of enactment and has such duration as determined by the ,corporation1 in accordance with standards established by the ,director1 but in no case has a duration longer than #ab months4 7,d7 ,not later than the expiration of the #f-month period referred to in subparagraph 7,c77i71 the ,corporation shall submit a report detailing its compliance with subparagraph 7,b7 to the ,congress1 the ,director of the ,federal ,housing ,finance ,agency1 the ,financial ,stability ,oversight ,council1 and the ,director of the ,bureau of ,consumer ,financial ,protection of the ,federal ,reserve ,system1 which shall describe any extensions of the period for compliance with subparagraph 7,b7 granted pursuant to subparagraph 7,c74 7,e7 ,for purposes of this paragraph1 the following definitions shall apply3 7i7 ,the term ,,mers means the ,mortgage ,electronic ,registration ,systems1 ,inc41 or any successor entity of such corporation4 7ii7 ,the term ,,mers mortgage means any mortgage-- 7,i7 for which the ,,mers is1 or was at any time1 the original or nominal mortgagee or mortgagee of record under the mortgage2 7,,ii7 that is1 or was at any time1 assigned to or recorded in the ,,mers2 or 7,,iii7 for which the ,,mers is1 or was at any time1 acting as nominee in the county land records for the lender or servicer of the mortgage4 4 7#c7 ,regulations ,not later than the expiration of the #ij-;day period beginning on the date of the enactment of this ,act1 the ,director of the ,federal ,housing ,finance ,agency shall issue any regulations necessary to carry out the amendments made by paragraphs 7#a7 and 7#b74 ,in issuing such regulations1 the ,director shall consult and coordinate with the ,secretary of ,housing and ,urban ,development to ensure that the regulations issued by the ,director and the regulations issued by the ,secretary pursuant to subsection 7b77#b7 of this section are uniform and consistent to maximum extent possible4 7b7 ,ginnie ,mae 7#a7 ,prohibition ,section #cjb7;c7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agag7;c77 is amended by adding at the end the following new paragraph3 7#f7 7,a7 ,after the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac1 the ,association may not newly guarantee the payment of principal of or interest on any trust certificate or other security based or backed by a trust or pool that contains1 or purchase or acquire1 any ,,mers mortgage4 7,b7 7i7 ,after the expiration of the period under subparagraph 7,c71 ,,mers shall not be the named mortgagee or mortgagee of record on any mortgage owned or held by the ,association or on any mortgage contained in a pool backing or on which is based any trust certificate or other security the payment of principal of or interest on which is guaranteed by the ,association4 7ii7 ,not later than the expiration of such period1 the ,association shall require that all mortgage loans that are owned or held at such time by the ,association1 or that at such time are contained in a trust or pool backing or on which is based a trust certificate or other security the payment of principal of or interest on which is guaranteed by the ,association1 and on which ,,mers is the named mortgagee or mortgagee of record1 shall be assigned to the servicer1 holder1 or creditor1 as defined by the guidelines of the ,association4 ,the ,association shall not reimburse the servicer1 holder1 or creditor for any expense incurred in the carrying out or recording such an assignment4 7,c7 7i7 ,except as provided in clause 7ii71 the period under this subparagraph is the #f-month period beginning on the date of the enactment of the ,transparency and ,security in ,mortgage ,registration ,act of #bjac4 7ii7 ,in the case of any mortgage owned or held by the ,association1 or contained in a trust or pool backing or on which is based a trust certificate or other security the payment of principal of or interest on which is guaranteed by the ,association1 for which the servicer1 holder1 or creditor has demonstrated to the ,association1 in accordance with standards established by the ,secretary1 that compliance with subparagraph 7,b7 by the expiration of such #f-month period will cause a severe threat to the continued financial viability of such entity1 the period under this subparagraph shall be the period that begins on such date of enactment and has such duration as determined by the ,association1 in accordance with standards established by the ,secretary1 but in no case has a duration longer than #ab months4 7,d7 ,not later than the expiration of the #f-month period described in subparagraph 7,c77i71 the ,association shall submit a report detailing its compliance with subparagraph 7,b7 to the ,congress1 the ,secretary1 the ,financial ,stability ,oversight ,council1 and the ,director of the ,bureau of ,consumer ,financial ,protection of the ,federal ,reserve ,system1 which shall describe any extensions of the period for compliance with subparagraph 7,b7 granted pursuant to subparagraph 7,c74 7,e7 ,for purposes of this paragraph1 the following definitions shall apply3 7i7 ,the term ,,mers means the ,mortgage ,electronic ,registration ,systems1 ,inc41 or any successor entity of such corporation4 7ii7 ,the term ,,mers mortgage means any mortgage-- 7,i7 for which the ,,mers is1 or was at any time1 the original or nominal mortgagee or mortgagee of record under the mortgage2 7,,ii7 that is1 or was at any time1 assigned to or recorded in the ,,mers2 or 7,,iii7 for which the ,,mers is1 or was at any time1 acting as nominee in the county land records for the lender or servicer of the mortgage4 4 7#b7 ,regulations ,not later than the expiration of the #ij-;day period beginning on the date of the enactment of this ,act1 the ,secretary of ,housing and ,urban ,development shall issue any regulations necessary to carry out the amendments made by paragraphs 7#a7 and 7#b74 ,in issuing such regulations1 the ,secretary shall consult and coordinate with the ,director of the ,federal ,housing ,finance ,agency to ensure that the regulations issued by the ,secretary and the regulations issued by the ,director pursuant to subsection 7a77#c7 of this section are uniform and consistent to maximum extent possible4 #c4 ,,hud study 7a7 ,study ,the ,secretary of ,housing and ,urban ,development1 in consultation with the ,comptroller ,general of the ,united ,states1 shall conduct a study to analyze and determine-- 7#a7 the impacts of the lack of electronic records and uniform standards found in local land title recordation systems currently used in the various ,states2 7#b7 any progress ,states have made in developing electronic land title recordation systems for their localities that contain uniform standards1 and any findings and conclusions and best practices resulting from such development2 7#c7 the current oversight role of the ,federal ,government in the transfer and recordation of land titles2 7#d7 opportunities1 and the feasibility of such opportunities1 that may be present to leverage progress made by some ,states and localities to create an electronic land title recordation system1 including through-- 7,a7 a system that would maintain all previous records of the land-property without invalidating1 interfering with1 or preempting ,state real property law governing the transfer and perfection of land title2 and 7,b7 further actions by the ,states or by the ,federal ,government1 or coordinated actions of both2 and 7#e7 the feasibility of creating a ,federal land title recordation system for property transfers that would maintain all previous records of the land-property without invalidating1 interfering with1 or preempting ,state real property law governing the transfer and perfection of land title4 7b7 ,report ,not later than the expiration of the #ab-month period beginning on the date of the enactment of this ,act1 the ,secretary of ,housing and ,urban ,development1 in consultation with the ,comptroller ,general of the ,united ,states1 shall submit to the ,congress a report on the results and findings of the study conducted under this section4