Protecting America's Property Rights Act
Summary
What This Bill Does
The Protecting America's Property Rights Act targets mortgage title and lien risk in the government-sponsored enterprise market. It directs FHFA to require Fannie Mae and Freddie Mac to use third-party lien and title protection products that are regulated by a state insurance authority or another state regulator. If an enterprise buys a mortgage that does not meet those product-regulation requirements, FHFA must impose additional capital equal to 1.00 percent of the unpaid principal balance. FHFA must issue regulations or guidance within 180 days.
Who Benefits and How
Title insurance providers benefit because the bill favors state-regulated third-party title and lien protection products. State insurance regulators benefit because enterprise mortgage risk management must rely on products under state oversight. Homebuyers benefit if state-regulated title protection reduces unresolved lien or ownership risk in enterprise-backed loans. Fannie Mae risk staff benefit from clearer statutory standards for qualifying title and lien protection.
Who Bears the Burden and How
Fannie Mae enterprise staff must ensure purchased mortgages use qualifying state-regulated lien and title protection. Freddie Mac enterprise staff must apply the same title-risk requirements when buying mortgages. Mortgage lenders using nonregulated products face enterprise capital friction or rejection pressure. FHFA supervisory staff must write guidance and apply the extra 1.00 percent unpaid-principal-balance capital charge.
Key Provisions
- Requires enterprise mortgage purchases to use state-regulated third-party lien and title protection products.
- Adds a 1.00 percent unpaid-principal-balance capital charge for noncompliant mortgages.
- Directs FHFA to issue regulations or guidance within 180 days.
- Protects state insurance oversight in Fannie Mae and Freddie Mac mortgage risk management.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Requires Fannie Mae and Freddie Mac to manage lien and title risk with state-regulated third-party products and adds a 1 percent capital charge to noncompliant enterprise mortgage purchases.
Key Policy Areas
Housing Finance, Insurance, Financial Regulation
Primary Purpose
Requires Fannie Mae and Freddie Mac to manage lien and title risk with state-regulated third-party products and adds a 1 percent capital charge to noncompliant enterprise mortgage purchases.
Policy Domains
Resolution provisions
Identified Gains
- Title insurance providers
- State insurance regulators
- Homebuyers
- Fannie Mae risk staff
Identified Costs
- Fannie Mae enterprise staff
- Freddie Mac enterprise staff
- Mortgage lenders using nonregulated products
- FHFA supervisory staff
Sponsors
Legislative Progress
In CommitteeMr. Garbarino (for himself and Mr. Vicente Gonzalez of Texas) …
Referred to the House Committee on Financial Services.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Mortgage lenders using nonregulated products, Title insurance providers
Positive-direction: Title insurance providers
Negative-direction: Mortgage lenders using nonregulated products
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology