Sec. 103. Regulation of market participants and aggregators
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The Platform shall be available for use only by originators and aggregators of mortgages who meet standards for eligibility for such use, as shall be established by the Director of Ginnie Mae (in this section referred to as the Director ). Pursuant to the authority under subsection (a): All market participants and participating aggregators shall, to the extent provided in this section, be subject to the supervision and regulation of the Director. Ginnie Mae shall have general regulatory authority over each market participant and participating aggregator and shall exercise such general regulatory authority to ensure that the purposes of this section are carried out.
Among the principal duties of the Director pursuant to subsection
(b)shall be— to oversee the prudential operations of each market participant and participating aggregator; and to ensure that— each market participant and participating aggregator operates in a safe and sound manner, including maintenance of adequate capital and internal controls; and each market participant and participating aggregator complies with this section and the rules, regulations, guidelines, and orders issued under this section. The Director shall establish prudential standards, by regulation or guideline, for market participants and participating aggregators to— ensure— the safety and soundness of market participants and participating aggregators; and the maintenance of approval standards by market participants and participating aggregators; and minimize the risk presented to the Fund. In carrying out the requirement under paragraph (1), the Director shall distinguish between prudential standards for market participants and such standards for participating aggregators. The Director may require, by general or specific orders, a market participant or participating aggregator to submit regular reports, including financial statements determined on a fair value basis, on the condition (including financial condition), management, activities, or operations of the market participant or participating aggregator, as the Director considers appropriate. The Director may require, by general or specific orders, a market participant or participating aggregator to submit special reports on any of the topics specified in paragraph
(1)or any other relevant topics, if, in the judgment of the Director, such reports are necessary to carry out the purposes of this Act. The Director may conduct such examinations and audits, including on-site examinations and audits, of market participants and participating aggregators as the Director considers appropriate to ensure compliance with this Act, to determine the condition of market participants and participating aggregators for the purpose of determining and ensuring their financial safety and soundness, and otherwise in any case that the Director determines an examination is necessary or appropriate. The Director shall establish standards, by regulation or guideline, for market participants and participating aggregators as the Director considers appropriate to avoid any conflicts of interest among market participants. The Director, in consultation with the Board of Governors of the Federal Reserve, shall— establish and carry out such risk-based capital tests as appropriate to evaluate whether each market participant and participating aggregator is maintaining a level of capital sufficient to absorb losses and support operations during adverse economic conditions so that they do not pose undue risks to their communities, other institutions, or the broader economy; and establish capital standards for market participants and participating aggregators based on such tests, which shall include the following classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. In establishing capital standards under paragraph (1)(B), the Director shall— ensure that such standards are tailored to each type of entity; and provide that any securities insured by Ginnie Mae under this Act should be given a risk-weight of zero. The Corporation shall have the authority to enforce the provisions of this Act with respect to market participants and participating aggregators, in the same manner and to the same extent as the Federal Deposit Insurance Corporation has with respect to insured depository institutions under the provisions of subsections
(b)through
(n)of section 8 of the Federal Deposit Insurance Act ( 12 U.S.C. 1818 ). If the Director determines that a market participant or a participating aggregator under this section no longer meets the standards for such approval or violates the requirements under this Act, including any standards, regulations, or orders promulgated in accordance with this Act, the Director may— suspend or revoke the status of the market participant or participating aggregator as approved to utilize the Platform; or take any other action with respect to such market participant or a participating aggregator as may be authorized under this Act. The suspension or revocation of the approved status of a market participant or a participating aggregator under this section shall have no effect on the status as an insured security of any security collateralized by eligible mortgages and insured prior to the suspension or revocation. The Director shall— promptly publish a notice in the Federal Register upon suspension or revocation of the approval of any market participant or a participating aggregator; and maintain an updated list of such approved market participants and participating aggregators on the website of Ginnie Mae. In this subsection, the term violate includes any action, taken alone or with others, for or toward causing, bringing about, participating in, counseling, or aiding or abetting, a violation of the requirements under this Act. Notwithstanding any other provision of Federal law, the law of any State, or the constitution of any State, the Director shall— have the authority to act, in the same manner and to the same extent, with respect to a market participant or participating aggregator that the Director determines pursuant to is classified as critically undercapitalized pursuant to subsection (h)(2), as the Federal Deposit Insurance Corporation has with respect to insured depository institutions under subsections
(c)through
(s)of section 11 of the Federal Deposit Insurance Act ( 12 U.S.C. 1821 ), section 12 of the Federal Deposit Insurance Act ( 12 U.S.C. 1822 ), and section 13 of the Federal Deposit Insurance Act ( 12 U.S.C. 1823 ), while tailoring such actions to the specific business model of the market participant or participating aggregator, as the case may be, as may be necessary to properly exercise such authority under this subsection; in carrying out any authority provided under subparagraph (A), act, in the same manner and to the same extent, with respect to the Fund as the Federal Deposit Insurance Corporation may act with respect to the Deposit Insurance Fund under the provisions of the Federal Deposit Insurance Act set forth in subparagraph (A); and consistent with the authorities provided in subparagraph (A), immediately place an insolvent market participant or participating aggregator into receivership. Notwithstanding paragraph (1), if an insolvent participating aggregator is an insured depository institution or an affiliate of an insured depository institution, the Director shall recommend, in writing, to such participating aggregator’s appropriate Federal banking agency or State banking regulator to resolve such participating aggregator pursuant to section 11(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1821(c) ) and other appropriate sections of the Federal Deposit Insurance Act ( 12 U.S.C. 1811 et seq. ) or appropriate Federal or State law, as applicable. The Director may not exercise any authority under paragraph
(1)with respect to any market participant or any participating aggregator that is not an insured depository institution or an affiliate of an insured depository institution, unless— the Director determines that the exercise of such authority is necessary to ensure proper and continued functioning of the secondary mortgage market; and the total amount of the expenditures by the Director and obligations incurred by the Director in connection with the exercise of any such authority with respect to such market participant or participating aggregator is the least costly to the Fund, consistent with the least cost approach specified in the Federal Deposit Insurance Act ( 12 U.S.C. 1811 et seq. ), of all possible methods for meeting Ginnie Mae’s obligations under this Act and expeditiously concluding its resolution activities. The Director, in carrying out any authority provided in this subsection, shall ensure that any amounts owed to the United States, unless the United States agrees or consents otherwise, shall have priority following administrative expenses of the receiver when satisfying unsecured claims against a market participant or participating aggregator, or the receiver therefor, that are proven to the satisfaction of the receiver.
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Sec. 103
Regulation of market participants and aggregators
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