H.R. 3206: Protecting America's Property Rights Act

This bill, known as the Protecting America's Property Rights Act, proposes several changes aimed at enhancing the management of risks associated with property liens and title defects for certain mortgage enterprises. Here’s a breakdown of what the bill entails:

1. Title and Purpose

The bill is titled the Protecting America's Property Rights Act and focuses on the purchase and sale of conventional mortgages by specific mortgage enterprises, with an emphasis on safety and soundness regarding lien and title protection.

2. Safe and Sound Lien and Title Protection

The bill seeks to amend existing laws governing the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. It includes the following provisions:

• Management of Risk: It requires mortgage enterprises to manage risks related to losses from liens, encumbrances, or defects in property titles. This risk management must utilize third-party products that are regulated either by a state insurance authority or a state regulator.
• Capital Standards: The bill mandates that the Director of the relevant agency must ensure that mortgage enterprises maintain an additional capital reserve equivalent to 1% of the unpaid principal balance on any mortgage that does not adhere to the aforementioned risk management requirements.
• Implementation and Compliance: It instructs the Director to issue regulations and guidance within 180 days following the bill’s enactment to ensure compliance with the new risk management stipulations.

3. Definitions

For clarity, the bill includes definitions for critical terms such as:

• Enterprises: Defined as those entities outlined in specific sections of existing financial statutes.
• Director: Also defined as per existing legal frameworks governing the relevant financial oversight agencies.

Relevant Companies

None found