Protecting America's Property Rights Act

The "Protecting America's Property Rights Act" introduces new requirements for Fannie Mae and Freddie Mac concerning the purchase and sale of conventional mortgages. It mandates that these enterprises manage risks related to liens, encumbrances, or defects in property titles by utilizing third-party products regulated by a State insurance authority or a State regulator. To incentivize compliance, the bill requires enterprises to hold an additional 1.00 percent of the unpaid principal balance as capital for any mortgage purchased that does not adhere to these title protection standards. The Director of the Federal Housing Finance Agency (FHFA) is directed to issue implementing regulations and guidance within 180 days, ensuring verification of the appropriate regulation of these products. This legislation seeks to strengthen consumer protection and financial soundness by standardizing and reinforcing title risk management practices within the secondary mortgage market.