Secondary Mortgage Market Enhancement Act of 1983

Summary

Secondary Mortgage Market Enhancement Act of 1983 - Title I: Securities Laws Amendments - Amends the Securities Act of 1983 to exempt from the securities registration requirements securities backed by second mortgages, cooperative housing loans, and manufactured home loans. Expands the type of allowable security to include mortgage-related payment bonds. Exempts from the securities registration requirements securities originated by any Department of Housing and Urban Development approved mortgagee (principally mortgage bankers) in addition to financial institutions. Requires that the current minimum transaction amount of $250,000 be applied only to the initial purchase amount. Permits a 120 day time limit on the cash payment for the security (currently 60 days). Defines "mortgage related security" for purposes of such Act. Exempts from borrowing restrictions certain delayed mortgage security delivery agreements. Amends the Home Owner's Loan Act of 1933 and the Federal Credit Union Act to allow federally-chartered financial institutions, including credit unions, to invest in mortgage-related securities subject only to limitations that the appropriate regulating board might impose. Preempts State blue sky and legal investment laws and regulations so that investment grade mortgage-related securities may be purchased by State-chartered and regulated financial institutions, insurance companies, pension funds, trustees or other regulated entities. Permits a State to reassert limitations on investments in mortgage securities within three years of enactment of these provisions if it finds such regulation necessary. Requires the Securities and Exchange Commission to provide a permanent procedure for the delayed or continuous registration of mortgage-backed securities. Title II: Security Mortgage Market Programs - Extends the Emergency Home Purchase Assistance Act of 1974 through October 1, 1984. Amends the Federal National Mortgage Association Charter Act to set FY 1984 mortgage-backed securities guarantee limits at $68,250,000,000. States that participation agreement limitations on maximum principal obligation of conventional mortgages shall apply to an entire mortgage regardless of whether the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) purchase the entire loan or a participation interest therein. Authorizes Freddie Mac and Fannie Mae to purchase residential second mortgages through October 1, 1985. Sets forth loan limits and related provisions. Expands Fannie Mae's Board of Directors from 15 to 18 members. Requires an annual Department of Housing and Urban Development (HUD) report regarding Fannie Mae's activities. Establishes a 45-day (with a 15-day extension) HUD approval period for Fannie Mae requests. Permits Freddie Mac to purchase manufactured home loans where the property securing them is considered by State law as personal or mixed personal and real (presently limited to real property security). Raises the limit on Freddie Mac and Fannie Mae multifamily conventional mortgage purchases. Permits certain Government National Mortgage Association mortgage purchase commitment extensions without the imposition of additional fees. Requires the Secretary to: (1) conduct a study of prepayment penalties and the secondary mortgage market; and (2) report to Congress within 180 days. Removes existing loan-to-value limits on multifamily mortgage purchases.

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Documents

2 official files

• Reported to House amended, Part I

  summary · EN · 6 September 1984

  Open at official source

• Introduced in House

  summary · EN · 18 November 1983

  Open at official source

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