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Code · BILL · 119th Congress · H.R. 3206 (Introduced in House) — To provide additional requirements for the purchase and sale of conventional mortgages by the enterprises, and for ot... · Sec. 2

Sec. 2. Ensuring safe and sound lien and title protection products

240 words·~1 min read·/bill/119/hr/3206/ih/section-2

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Section 1108(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4513b(a) ) is amended by inserting at the end the following: management of risk related to loss or damage suffered by reason of liens, encumbrances upon, or defects in the title to such property, or the invalidity or unenforceability of any liens or encumbrances thereon by utilizing third party products subject to regulation by— a State insurance authority as defined in 15 section 6809(11) of title 15, United States Code; or a State regulator as defined in section 5481(22) of title 12, United States Code. .
In establishing minimum capital level pursuant to section 4612 of title 12, United States Code, the Director shall require the Enterprises to hold an additional 1.00 percent of the unpaid principal balance of any mortgage purchased by the Enterprises that does not meet the requirements of subsection (a). The Director shall, not later than 180 days after the date of enactment of this section, issue such regulations and guidance as necessary to ensure compliance with subsection (a), including requiring the Enterprises to verify that any product meeting the definition in subsection
(a)is appropriately regulated. For purposes of this section— the term Enterprises shall have the same meaning as in section 4502(10) of title 12, United States Code; and the term Director shall have the same meaning as in section 4052(9) of title 12, United States Code.
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Sec. 2
Ensuring safe and sound lien and title protection products
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