Sec. 106. Mandatory risk-sharing
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Subpart A of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by adding after section 1327 ( 12 U.S.C. 4547 ) the following new section: The Director shall require each enterprise to develop and undertake transactions involving the guarantee by the enterprises of securities and obligations based on or backed by mortgages on residential real properties designed principally for occupancy of from 1 to 4 families that provide for private market participants to share or assume credit risk associated with such mortgages, as follows:
The Director shall require that not less than 10 percent of the annual business of each enterprise (as measured in such manner as the Director shall determine) in guaranteeing such securities and obligations involve such transactions. The Director shall require that in complying with paragraph (1), each enterprise undertake multiple types of the various transactions and structures described in subsection (b). The risk-sharing transactions referred to in subsection
(a)may include transactions involving increased mortgage insurance requirements, credit-linked notes and securities, senior and subordinated security structures, and such other structures and transactions as the Director considers appropriate to increase private market assumption of credit risk. .
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Sec. 106
Mandatory risk-sharing
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