Sec. 201. Issuing Platform
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There is established within Ginnie Mae an entity to be known as the Issuing Platform (the Platform ), which shall issue standardized mortgage-backed securities to increase homogeneity in the eligible securities market. The Platform may— make contracts, incur liabilities, and borrow money; purchase, sell, receive, hold, and use real and personal property; create, execute, and administer trusts; and take such actions as the Platform determines are necessary or incidental to carry out the Platform’s duties under this Act.
A mortgage originator or aggregator that wishes to make use of the Platform and have Ginnie Mae insure the securities issued by the Platform shall deliver to the Platform a pool of eligible mortgage loans. The Platform shall, upon receiving a pool of eligible mortgages— create standardized mortgage-backed securities collateralized by such mortgages; and transfer the standardized mortgage-backed securities to the mortgage originator or aggregator from which the Platform received the pool of eligible mortgages that are collateralizing the securities or the designee of such originator or aggregator.
In issuing securities under this section, the Platform shall establish standardized criteria for such securities, including— uniform loan delivery, servicing, and pooling requirements; remittance requirements; underwriting guidelines and refinance programs; the credit quality of the guarantee provided to each security; servicing standards and loan repurchase policies; disclosure policies; security terms and features; and standards for the appropriate minimum level of diversification for the mortgage loans that collateralize such securities, in order to reduce the credit risk such securities could pose to the Fund.
The Platform shall charge a fee for securitization services provided under this section. Such fee shall be set by the Director and shall be in an amount sufficient to offset the costs to the Platform of carrying out this section. Ginnie Mae shall establish limitations governing the maximum original principal obligation of eligible mortgage loans that may collateralize a security issued under this Act. The limitation set forth under paragraph
(1)shall be calculated with respect to the total original principal obligation of the eligible mortgage loan and not merely with respect to the amount insured by Ginnie Mae. Except as provided in subparagraph (B), the maximum limitation amount under this paragraph shall not exceed $417,000 for a mortgage loan secured by a 1-family residence, for a mortgage loan secured by a 2-family residence the limit shall equal 128 percent of the limit for a mortgage loan secured by a 1-family residence, for a mortgage loan secured by a 3-family residence the limit shall equal 155 percent of the limit for a mortgage loan secured by a 1-family residence, and for a mortgage loan secured by a 4-family residence the limit shall equal 192 percent of the limit for a mortgage loan secured by a 1-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning after the effective date of this Act, subject to the limitations in this subsection. Each adjustment shall be made by adding to each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase, during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment, in the housing price index maintained by the Director of the Federal Housing Finance Agency pursuant to section 1322 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4542 ). If the change in such housing price index during the most recent 12-month or 4-quarter period ending before the time of determining such annual adjustment is a decrease, then no adjustment shall be made for the next year, and the next upward adjustment shall take into account prior declines in the house price index, so that any adjustment shall reflect the net change in the house price index since the last adjustment. Declines in the house price index shall be accumulated and then reduce increases until subsequent increases exceed prior declines. The limitations set forth in subparagraph
(A)may be increased by not more than 50 percent with respect to properties located in Alaska, Guam, Hawaii, and the Virgin Islands. With respect to an eligible mortgage loan that is or will be contained in a pool of mortgages delivered to the Platform, the mortgage originator of such mortgage loan may enter into agreements with market participants to provide loan-level enhancement of such mortgage loan. Ginnie Mae shall, upon a determination that the Platform is able to efficiently carry out the issuance of standardized mortgage-backed securities, that there exists a sufficient number of market participants to serve as insurers and reinsurers under section 202, and that the secondary mortgage market has sufficient liquidity to implement the provisions of this Act (and the amendments made by this Act) that will take effect upon this determination, certify to the Congress that such determination has been made. In carrying out its responsibilities under this title, Ginnie Mae shall facilitate the broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for single-family and multifamily lending across all— regions; localities; institutions; property types, including housing serving renters; and borrowers. Ginnie Mae shall, quarterly during the 5-year period following the certification date and semiannually thereafter, issue a report to the Congress on— how Ginnie Mae is carrying out the duties required under paragraph (1); and the extent to which the provisions of this title and the programs carried out pursuant to this title are benefitting underserved communities. Standardized mortgage-backed securities issued by the Platform shall be exempt from the Federal securities laws (as defined under section 3(a) of the Securities Exchange Act of 1934) and all regulations issued pursuant to such laws. During and after the establishment of the Platform, if Ginnie Mae determines that operational or other problems with the Platform do not permit the Platform to operate in a manner that allows the Platform to achieve the purposes and obligations of the Platform under this section, Ginnie Mae shall have the authority to permit the Platform to use other entities other than the Platform, including the infrastructure of Fannie Mae and Freddie Mac, to perform issuance functions required to be performed by the Platform and that are necessary for the proper functioning of the secondary mortgage market, until Ginnie Mae deems the Platform fully operational.
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