Sec. 314. Transition period

636 words·~3 min read·/bill/115/hr/6746/ih/section-314

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Prior to the Transfer Date, Common Securitization Solutions shall develop, promulgate, and finalize standards that— develop a uniform contractual and disclosure framework for issuers, including issuers other than the enterprises; specify the requirements for loans that may serve as collateral for mortgage-backed securities issued through the Common Securitization Platform, including securities that will be issued by issuers other than the enterprises; and specify the requirements for operating and maintaining the Common Securitization Platform and the establishment of reasonable fees for use of the Common Securitization Platform.

In establishing the standards described under paragraph (1), Common Securitization Solutions shall use established industry standards as a basis for standardization requirements for the issuance of such securities through the Common Securitization Platform. The standards developed pursuant to paragraph

(1)shall be subject to approval by a 2/3 vote of the CSS Board of Managers and by the Director. Common Securitization Solutions or the Exchange, as applicable, may revise the standards established pursuant to paragraph

(1)from time to time as may be necessary. Material revisions to such standards shall require a 2/3 vote of the CSS Board of Managers or the board of directors of the Exchange, as applicable, and approval of the Director. The Director shall establish a date or dates, not later than 2 years after the date of enactment of this Act, by which Common Securitization Solutions shall facilitate the issuance of securities by issuers other than the enterprises to issue mortgage-backed securities. The Director may delay a date established under subparagraph

(A)for 1 year if the Director, in consultation with the Federal Housing Finance Oversight Board— determines that— facilitation of such securities is not feasible within that period of time and could adversely impact the housing market; or the capabilities of other entities is not feasible within that period of time and could adversely impact facilitating the issuance of securities by the enterprises; and submits to Congress a report describing the justification for the determinations made under clause (i). At a time established by the Director, but not later than the Transfer Date, the Agency shall transfer to Common Securitization Solutions such funds from the enterprises as the Director, after consultation with the CSS Board of Managers, determines may be reasonably necessary for Common Securitization Solutions to begin carrying out the operations and activities of the Common Securitization Platform and the contractual and disclosure framework. Not later than 1 year after the date of enactment of this Act, and every quarter thereafter until the Transfer Date, the Director shall submit to Congress a report on the status of the development of the Common Securitization Platform and the contractual and disclosure framework, which shall include— the projected timelines, including issues and impediments, for— completing development of the Common Securitization Platform to support the securitization needs of the enterprises; and completing development of the Common Securitization Platform and the contractual and disclosure framework to support the securitization needs of issuers other than the enterprises; and the projected budget, including costs incurred by Common Securitization Solutions and the enterprises, for the development of the Common Securitization Platform and the contractual and disclosure framework. Not later than 2 years after the date of enactment of this Act, the Director shall develop a plan, and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on such plan, to transition, by the Transfer Date, the Common Securitization Platform and the contractual and disclosure framework from Common Securitization Solutions into a private, nonprofit entity that best facilitates a deep, liquid, and resilient secondary mortgage market for mortgage-backed securities. The Inspector General of the Agency shall issue an annual report to the Congress on the status of the Common Securitization Platform until the Transfer Date.