An act to amend the Securities Exchange Act of 1934 with respect to the treatment of mortgage backed securities, to increase the authority of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and for other purposes.

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). 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: Federal Home Loan Mortgage Corporation and Federal National Mortgage Association Amendments - Amends the Federal Home Loan Mortgage Corporation Act and the National Housing Act to require that preferred stock issued by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), other than preferred Freddie Mac stock sold to the Federal Home Loan Banks, include terms that would be required for New York Stock Exchange listing. States that participation agreement limitations on maximum principal obligation of conventional mortgages shall apply to an entire mortgage regardless of whether Freddie Mac and Fannie Mae purchase the entire loan or a participation interest therein. 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). Establishes a 45-day (with a 15-day extension) Department of Housing and Urban Development (HUD) approval period for Fannie Mae requests. Removes existing loan-to-value limits on multifamily mortgage purchases. Expands Fannie Mae's Board of Directors from 15 to 18 members. Raises the limit on Freddie Mac and Fannie Mae multifamily conventional mortgage purchases. Requires an annual HUD report regarding Fannie Mae's activities. Authorizes Freddie Mac and Fannie Mae to purchase residential second mortgages through October 1, 1985. Sets forth loan limits and related provisions.

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Documents

3 official files

• Public Law (PDF)

  Public Law · EN · 4 October 1984

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• Passed House amended

  summary · EN · 11 September 1984

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• Introduced in Senate

  summary · EN · 2 November 1983

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