Sec. 302. MFA Guarantee business
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The MFA shall guarantee the timely payment of principal and interest to holders of qualified mortgage-backed securities. In the event of a payment default on a mortgage that collateralizes a qualified mortgage-backed security, the MFA guarantee shall cover any shortfalls to security holders after giving effect to proceeds, if any, from liquidation of the property securing the mortgage and from claims paid pursuant to any private mortgage insurance coverage (including supplemental insurance coverage, if any).
The MFA guarantee of timely payment of principal and interest on qualified mortgage-backed securities shall be backed by the full faith and credit of the United States Government. The MFA shall charge a fee for such guarantee in accordance with section 303. The MFA shall issue guidelines consistent with this Act specifying the terms and conditions of mortgages that satisfy— the definition of a qualified residential mortgage, not later than 6 months after the date of confirmation of the Director; and the definition of a qualified multifamily mortgage, not later than 1 year after the date of confirmation of the Director.
Not later than 12 months after the date of confirmation of the Director, the MFA shall issue guidelines designed to oversee the financial condition and origination and servicing standards of qualified issuers and servicers of qualified residential mortgages and qualified multifamily mortgages that collateralize qualified mortgage-backed securities. Guidelines issued under this subsection shall— include specific financial and operational standards for such qualified issuers and such servicers; and ensure— broad participation in the issuance of qualified mortgage-backed securities by community banks, credit unions, national banks, and State-licensed mortgage lenders; that qualified issuers bear the risk of noncompliance with representations and warranties made in connection with the issuance of qualified mortgage-backed securities; and that qualified issuers have the financial resources to support any obligations arising from any violations of representations and warranties made in connection with the issuance of qualified mortgage-backed securities.
The MFA shall set loan limits for qualified residential mortgages that secure qualified mortgage-backed securities. Such loan limits shall be calculated and set annually, on a county-by-county basis, at an amount equal to not more than 150 percent of the area median home price for the preceding year, and not less than the national median home price for such year, in each case calculated using home price data compiled by the FHFA or, if the FHFA no longer compiles such data, by the MFA.
In no event shall the loan limits in effect under this section in any county be lower than amounts applicable to single family mortgages insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.) in such county. The MFA, in consultation with the Board of Directors, shall consider setting loan limits for qualified multifamily mortgages that secure qualified mortgage-backed securities, if such limits would foster competition between the MFA and private issuers in advance of the privatization of the MFA.
The MFA shall not invest in mortgage-backed securities or otherwise maintain an investment portfolio, other than to the extent necessary for the MFA to carry out its responsibilities as guarantor of qualified mortgage-backed securities.
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Sec. 302
MFA Guarantee business
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