Sec. 104. Limitation on enterprise mortgage purchases
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Section 302(b) of the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1717(b) ) is amended by adding at the end the following new paragraph: The corporation may only purchase, make commitments to purchase, service, sell, lend on the security of, or otherwise deal in a mortgage on a property comprising 1- to 4-family dwelling units that— bears interest at a rate that is fixed for the entire term of the mortgage; and is made— to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor’s principal residence; or to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property, which is occupied by the mortgagor as the mortgagor’s principal residence, but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage, as determined in accordance with guidelines issued by the Director. .
Section 305(a) of the Federal Home Loan Mortgage Corporation Act ( 12 U.S.C. 1454(a) ) is amended by adding at the end the following new paragraph: The Corporation may only purchase, make commitments to purchase, service, sell, lend on the security of, or otherwise deal in a mortgage on a property comprising 1- to 4-family dwelling units that— bears interest at a rate that is fixed for the entire term of the mortgage; and is made— to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor’s principal residence; or to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property, which is occupied by the mortgagor as the mortgagor’s principal residence, but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage, as determined in accordance with guidelines issued by the Director. .
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