117 S3040 IS: No GSE Subsidies for Investor Properties Act U.S. Senate 2021-10-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS1st SessionS. 3040IN THE SENATE OF THE UNITED STATESOctober 21, 2021Mr. Toomey introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsA BILLTo prohibit Fannie Mae and Freddie Mac from purchasing or otherwise acquiring investor property loans, and for other purposes.

1.

Short title

This Act may be cited as the No GSE Subsidies for Investor Properties Act.

2.

Definitions

In this Act:(1)

Conventional mortgage

The term conventional mortgage has the meaning given the term in section 302(i) of the Federal Home Loan Mortgage Act (12 U.S.C. 1451(i)).(2)

Enterprise

The term enterprise has the meaning given the term in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502).(3)

Investor property loan

The term investor property loan means a conventional mortgage secured by a property comprising 1-to-4 family dwelling units that is not the principal residence or a second home of the borrower.

3.

Prohibition on purchase or acquisition of investor property loans

(a)

In general

Notwithstanding any other provision of law, including the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) or the Federal Home Loan Mortgage Corporation Act (42 U.S.C. 1451 et seq.), on and after the date that is 18 months after the date of enactment of this Act, an enterprise may not purchase or otherwise acquire an investor property loan.(b)

Transition plans

The Federal Housing Finance Agency shall require each enterprise to develop and implement a plan to gradually reduce the purchase and acquisition of investor property loans by the enterprise to achieve compliance with subsection (a) while mitigating the risk of disruption to the housing finance market in the United States.