Sec. 302. Findings and purposes
402 words·~2 min read·
/bill/113/hr/2767/ih/section-302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Congress finds that— the liquidity and efficiency of the national housing finance market is enhanced by a robust secondary market for residential mortgage loans, including securities backed by residential mortgage loans; the financial crisis that began in 2007 revealed weaknesses in the market infrastructure related to residential mortgage-backed securities, including— weaknesses in standards— for underwriting and servicing residential mortgage loans that may be collateral for mortgage-backed securities; and for issuers and trustees of such securities; weaknesses in the manner of recording and registering ownership and security interests in residential mortgage loans that backed pools of securities; and weaknesses in the availability of information to assess performance of pools; weaknesses revealed in the financial crisis created uncertainty and impeded timely and successful resolution of troubled residential mortgage loans, and have impeded the return of private capital to the market for securities backed by residential mortgage loans in the absence of a Federal guarantee of timely payment of principal and interest to investors; and improved standards and information availability and a national system for registering mortgage-related documents, including notes, mortgages and deeds of trust, and ownership and security interests 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.
The purposes of the national mortgage market utility created by this title are— to enhance efficiency, liquidity, and security in the secondary market for residential mortgages, including mortgage-backed securities; to establish standards related to originating and servicing eligible collateral and for issuers and trustees of qualified securities, which would be exempt from the Securities Act of 1933; to improve uniformity, quality and accessibility of information related to the performance of residential mortgage loans; to operate a common securitization platform that could be available to issuers of residential mortgage-backed securities; to foster the use and uniformity of electronic methods for the creation, authentication, transmission, storage, and availability of materials relating to mortgages; 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 to provide a uniform procedure for demonstrating 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, involving such notes or other data.