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Code · BILL · 114th Congress · S. 495 (Introduced in Senate) — To revoke the charters for the Federal National Mortgage Corporation and the Federal Home Loan Mortgage Corporation u... · Sec. 101

Sec. 101. Receivership of the enterprises

253 words·~1 min read·/bill/114/s/495/is/section-101·

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Effective on the MFA certification date, the FHFA is appointed receiver of the enterprises, and the enterprises shall be placed into irrevocable receivership by the FHFA, in accordance with section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ), except that— paragraphs
(1)through
(5)of subsection
(a)of such section 1367 do not apply with respect to such appointment; and prior to the MFA certification date, the enterprises shall be permitted to engage in the business of guaranteeing the timely payment of principal and interest on qualified mortgage-backed securities and to undertake all functions necessary to carry out such business, to the extent that such guarantees are necessary to provide a dependable, transparent, and liquid market for high quality mortgages for securitization. Immediately upon placement of the enterprises into receivership, the FHFA shall commence liquidation of the enterprises. The charter of the Federal National Mortgage Association, is repealed, effective 90 days after the date on which liquidation thereof is complete, in accordance with this Act. The charter of the Federal Home Loan Mortgage Corporation, is repealed, effective 90 days after the date on which liquidation thereof is complete, in accordance with this Act. For purposes of any provision of Federal law that refers to or relies on a decision by the Director of the FHFA to place an enterprise into receivership, such determination shall be deemed to have been made by operation of the placement of the enterprises into receivership under subsection (a).
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Sec. 101
Receivership of the enterprises
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