Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans
576 words·~3 min read·
/bill/114/hr/1491/ih/section-405·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Paragraph
(8)of section 542(b) of the Housing and Community Development Act of 1992 ( 12 U.S.C. 1715z–22(b)(8) ) is amended to read as follows: The Government National Mortgage Association shall not securitize any multifamily loans insured or reinsured under this subsection, except as provided in subparagraph (B). The Government National Mortgage Association may, at the discretion of the Director of Ginnie Mae, securitize any multifamily loan, provided that— the Federal Housing Administration provides mortgage insurance based on the unpaid principal balance of the loan, as shall be described in the risk-sharing agreement; the Federal Housing Administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages; and any successors and assigns of the risk-sharing partner (including the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee therein named) shall not assume any obligation under the risk-sharing agreement and may assign any defaulted loan to the Federal Housing Administration in exchange for payment of the mortgage insurance claim. The risk-sharing agreement shall provide for reimbursement to Ginnie Mae by the risk-sharing partner or partners for either all or a portion of the losses incurred on the loans insured. . Paragraph
(6)of section 542(c) of the Housing and Community Development Act of 1992 ( 12 U.S.C. 1715z–22(c) ) is amended to read as follows: The Government National Mortgage Association may, at the discretion of the Director of Ginnie Mae, securitize any multifamily loan insured under this subsection, provided that— the Federal Housing Administration provides mortgage insurance based on the unpaid principal balance of the loan, as shall be described by regulation; the Federal Housing Administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages; and any successors and assigns of the risk-sharing partner (including the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee therein named) shall not assume any obligation under the risk-sharing agreement and may assign any defaulted loan to the Federal Housing Administration in exchange for payment of the mortgage insurance claim. The risk-sharing agreement shall provide for reimbursement to Ginnie Mae by the risk-sharing partner or partners for either all or a portion of the losses incurred on the loans insured. . Clause
(ii)of the first sentence of section 306(g)(1) of the National Housing Act ( 12 U.S.C. 1721(g)(1) ) is amended— by striking the semicolon and inserting a comma; and by inserting before the period at the end the following: , or which are insured under subsection
(b)or
(c)of section 542 of the Housing and Community Development Act of 1992 ( . 12 U.S.C. 1715z–22 ), subject to the terms of paragraph
(8)or (6), respectively, of such subsection The amendments made by this section shall be implemented in a manner that— ensures that participants in the programs under subsections
(b)and
(c)of section 542 of the Housing and Community Development Act of 1992 are subject to standards consistent with those applicable to private sector lenders approved by the Department of Housing and Urban Development, and does not restrict participation, and provides equal opportunities for participation, in the programs under subsections
(b)and
(c)of section 542 of the Housing and Community Development Act of 1992, of private sector lenders meeting the standards for such participation.
Connectionstraces to 1
Traces to 1 document
3 references not yet in our index
- 12 USC 1715z–22(b)(8)
- 12 USC 1715z–22(c)
- 12 USC 1715z–22
Citation graph
cites case law
Sec. 405
Ginnie Mae securitization of FHA risk-sharing loans
Cite12 USC 1715z–22(b)(8)
Cite12 USC 1715z–22(c)
Cite12 USC 1715z–22
Cites 4Cited by 0 across 0 sources