To prohibit Fannie Mae, Freddie Mac, and Ginnie Mae from owning or guaranteeing any mortgage that is assigned to the Mortgage Electronic Registration Systems or for which MERS is the mortgagee of record.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Transparency and Security in Mortgage Registration Act of 2013''.
SEC. 2. PROHIBITION ON GUARANTEEING MERS MORTGAGES.
(a) Fannie Mae and Freddie Mac.-- (1) Fannie mae.--Section 302(b) of the National Housing Act (12 U.S.C. 1717(b)) is amended by adding at the end the following new paragraph: ``(7)(A) After the date of the enactment of the Transparency and Security in Mortgage Registration Act of 2013, the corporation may not purchase, acquire, newly lend on the security of, newly invest in securities consisting of, or otherwise newly deal in any MERS mortgage or mortgages. ``(B) After the expiration of the period under subparagraph (C), MERS shall not be the named mortgagee or mortgagee of record on any mortgage owned, guaranteed, or securitized by the corporation. Not later than the expiration of such period, the corporation shall require that all mortgage loans owned, guaranteed, or securitized at such time by the corporation and on which MERS is the named mortgagee or mortgagee of record shall be assigned to the servicer, holder, or creditor, as defined by the guidelines of the corporation. The corporation shall not reimburse the servicer, holder, or...