S.Amdt. 4625

SA 4625. Mr. SUNUNU submitted an amendment intended to be proposed by
him to the bill H.R. 5441, making appropriations for the Department of
Homeland Security for the fiscal year ending September 30, 2007, and
for other purposes; which was ordered to lie on the table; as follows:

On page 127, between lines 2 and 3, insert the following:

SEC. 540. 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 Affect on Trust Indenture Act of 1939.--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) Treatment of Fees.--Fees collected by the Securities
and Exchange Commission from the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation as
a result of the amendments made by this section shall not be
considered to be offsetting collections to the account
providing appropriations to the Securities and Exchange
Commission for any fiscal year, and shall be deposited in the
general fund of the Treasury.
(e) 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.
(f) Effective Date.--The amendments made by this section
shall become effective 1 year after the date of enactment of
this Act.
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