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Code · BILL · 113th Congress · S. 1217 (Reported in Senate) — To provide secondary mortgage market reform, and for other purposes. · Sec. 232

Sec. 232. Office of Securitization

322 words·~1 min read·/bill/113/s/1217/rs/section-232·

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There is established within the Federal Mortgage Insurance Corporation an Office of Securitization which shall be headed by the Deputy Director of Securitization, who shall be appointed by the Board of Directors. The Office of Securitization shall— oversee and supervise the common securitization platform developed by the business entity announced by the Federal Housing Finance Agency and established by the enterprises, including by requiring that the platform have system capabilities to permit the issuance of multi-lender covered securities; ensure that credit unions, community and mid-size banks, and small non-depository lenders have equitable access to any such platform, including through the development and facilitation of options for multi-lender pools of eligible mortgages to be securitized and issued as covered securities through such platform; and coordinate and consult with the Federal Home Loan Bank System to establish a securitization platform that addresses the needs of its members.
The Corporation, acting through the Office of Securitization, may promulgate rules— regarding the use of the common securitization platform described under paragraph (1)(A); and to permit securities other than covered securities to be issued through such platform for reasonable compensation. Any rule that may be promulgated under subparagraph
(A)may include a requirement that any security to be issued through the common securitization platform be subject to a uniform securitization agreement developed under section 223. The Office of Securitization shall establish, operate, and maintain a database that— can be accessed by any holder of a lien on an eligible mortgage; identifies and tracks if a junior lien or any other subordinate lien has been issued on the property securing an eligible mortgage; notifies, to the extent feasible, any senior or first lien holder of the existence of such junior or subordinate lien; and informs— the senior or first lien holder of the monthly performance of the junior or subordinate lien; and the junior or subordinate lien holder of the monthly performance of the senior or first lien.
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