To require Fannie Mae and Freddie Mac to register under the Securities Act of 1933.
What it does: Adds SEC. __. REGISTRATION OF GSE SECURITIES wherever appropriate
Sen. Chuck Hagel (R-NE)Adds SEC. __. REGISTRATION OF GSE SECURITIES wherever appropriate
Adds a sectionInserted: SEC. __. REGISTRATION OF GSE SECURITIES.
Inserted: (a) Fannie Mae.--
Inserted: (1) Mortgage-backed securities.--Section 304(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(d)) is amended by striking the fourth sentence and inserting the following: "Securities issued by the corporation under this subsection shall not be exempt securities for purposes of the Securities Act of 1933.".
Inserted: (2) Subordinate obligations.--Section 304(e) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(e)) is amended by striking the fourth sentence and inserting the following: "Obligations issued by the corporation under this subsection shall not be exempt securities for purposes of the Securities Act of 1933.".
Inserted: (3) Securities.--Section 311 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723c) is amended--
Inserted: (A) in the section heading, by striking "association";
Inserted: (B) by inserting "(a) In General.--" after "sec. 311.";
Inserted: (C) in the second sentence, by inserting "by the Association" after "issued"; and
Inserted: (D) by adding at the end the following:
Inserted: "(b) Treatment of Corporation Securities.--
Inserted: "(1) In general.--Any stock, obligations, securities, participations, or other instruments issued or guaranteed by the corporation pursuant to this title shall not be exempt securities for purposes of the Securities Act of 1933.
Inserted: "(2) Exemption for approved sellers.--Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than an issuer, underwriter, or dealer for purposes of the Securities Act of 1933.
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Inserted: "(3) Definitions.--For purposes of this subsection, the following definitions shall apply:
Inserted: "(A) Approved seller.--The term 'approved seller' means an institution approved by the corporation to sell mortgage loans to the corporation in exchange for pooled certificates.
Inserted: "(B) Pooled certificates.--The term 'pooled certificates' means single class mortgage-backed securities guaranteed by the corporation that have been issued by the corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.
Inserted: "(4) Mortgage related securities.--A single class mortgage-backed security guaranteed by the corporation that has been issued by the corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities or directly by the corporation for cash shall be deemed to be a mortgage related security, as defined in section 3(a) of the Securities Exchange Act of 1934.".
Inserted: (b) Freddie Mac.--Section 306(g) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(g)) is amended to read as follows:
Inserted: "(g) Treatment of Securities.--
Inserted: "(1) In general.--Any securities issued or guaranteed by the Corporation shall not be exempt securities for purposes of the Securities Act of 1933.
Inserted: "(2) Exemption for approved sellers.--Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the Corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than an issuer, underwriter, or dealer for purposes of the Securities Act of 1933.
Inserted: "(3) Definitions.--For purposes of this subsection, the following definitions shall apply:
Inserted: "(A) Approved seller.--The term 'approved seller' means an institution approved by the Corporation to sell mortgage loans to the Corporation in exchange for pooled certificates.
Inserted: "(B) Pooled certificates.--The term 'pooled certificates' means single class mortgage-backed securities guaranteed by the Corporation that have been issued by the Corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.".
Inserted: (c) No Effect on Other Law.--Nothing in this section or the amendments made by this section shall be construed to affect any exemption from the provisions of the Trust Indenture Act of 1939 provided to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
Inserted: (d) Regulations.--The Securities and Exchange Commission may issue such regulations as may be necessary or appropriate to carry out this section and the amendments made by this section.
Inserted: (e) Effective Date.--The amendments made by this section shall become effective 1 year after the date of enactment of this Act.
The amendment doesn't say where this goes; the clerk decides.
Original wording
At the appropriate place, insert the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 2391. Mr. HAGEL (for himself and Mr. Sununu) submitted an amendment intended to be proposed by him to the bill S. 1932, to provide for reconciliation pursuant to section 202(a) of the concurrent resolution on the budget for fiscal year 2006 (H. Con. Res. 95); which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. REGISTRATION OF GSE SECURITIES.
(a) Fannie Mae.--
(1) Mortgage-backed securities.--Section 304(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(d)) is amended by striking the fourth sentence and inserting the following: “Securities issued by the corporation under this subsection shall not be exempt securities for purposes of the Securities Act of 1933.”.
(2) Subordinate obligations.--Section 304(e) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(e)) is amended by striking the fourth sentence and inserting the following: “Obligations issued by the corporation under this subsection shall not be exempt securities for purposes of the Securities Act of 1933.”.
(3) Securities.--Section 311 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723c) is amended--
(A) in the section heading, by striking “association”;
(B) by inserting “(a) In General.--” after “sec. 311.”;
(C) in the second sentence, by inserting “by the Association” after “issued”; and
(D) by adding at the end the following:
“(b) Treatment of Corporation Securities.--
“(1) In general.--Any stock, obligations, securities, participations, or other instruments issued or guaranteed by the corporation pursuant to this title shall not be exempt securities for purposes of the Securities Act of 1933.
“(2) Exemption for approved sellers.--Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than an issuer, underwriter, or dealer for purposes of the Securities Act of 1933.
“(3) Definitions.--For purposes of this subsection, the following definitions shall apply:
“(A) Approved seller.--The term ‘approved seller' means an institution approved by the corporation to sell mortgage loans to the corporation in exchange for pooled certificates.
“(B) Pooled certificates.--The term ‘pooled certificates' means single class mortgage-backed securities guaranteed by the corporation that have been issued by the corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.
“(4) Mortgage related securities.--A single class mortgage-backed security guaranteed by the corporation that has been issued by the corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities or directly by the corporation for cash shall be deemed to be a mortgage related security, as defined in section 3(a) of the Securities Exchange Act of 1934.”.
(b) Freddie Mac.--Section 306(g) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(g)) is amended to read as follows:
“(g) Treatment of Securities.--
“(1) In general.--Any securities issued or guaranteed by the Corporation shall not be exempt securities for purposes of the Securities Act of 1933.
“(2) Exemption for approved sellers.--Notwithstanding any other provision of this title or the Securities Act of 1933, transactions involving the initial disposition by an approved seller of pooled certificates that are acquired by that seller from the Corporation upon the initial issuance of the pooled certificates shall be deemed to be transactions by a person other than an issuer, underwriter, or dealer for purposes of the Securities Act of 1933.
“(3) Definitions.--For purposes of this subsection, the following definitions shall apply:
“(A) Approved seller.--The term ‘approved seller' means an institution approved by the Corporation to sell mortgage loans to the Corporation in exchange for pooled certificates.
“(B) Pooled certificates.--The term ‘pooled certificates' means single class mortgage-backed securities guaranteed by the Corporation that have been issued by the Corporation directly to the approved seller in exchange for the mortgage loans underlying such mortgage-backed securities.”.
(c) No Effect on Other Law.--Nothing in this section or the amendments made by this section shall be construed to affect any exemption from the provisions of the Trust Indenture Act of 1939 provided to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
(d) Regulations.--The Securities and Exchange Commission may issue such regulations as may be necessary or appropriate to carry out this section and the amendments made by this section.
(e) Effective Date.--The amendments made by this section shall become effective 1 year after the date of enactment of this Act.
Legislative Activity
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Senate amendment proposed (on the floor): Amendment SA 2391 proposed by Senator Hagel.(consideration: CR S12319-12320; text: CR S12319-12320)
November 3, 2005
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Senate amendment proposed (on the floor): Amendment SA 2391 proposed by Senator Hagel.(consideration: CR S12319-12320; text: CR S12319-12320)
November 3, 2005
Amendment SA 2391 proposed by Senator Hagel. (consideration: CR S12319-12320; text: CR S12319-12320) To require Fannie Mae and Freddie Mac to register under the Securities Act of 1933.
November 3, 2005
Proposed amendment SA 2391 withdrawn in Senate.
November 3, 2005
Senate amendment submitted
November 2, 2005