text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Transparency and Security in 
  Mortgage Registration Act of 2010''.
  
  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:
      ``(6)(A) After the date of the enactment of the Transparency and 
  Security in Mortgage Registration Act of 2010, 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 creditor for 
  any expense incurred in the carrying out or recording such an 
  assignment.
      ``(C)(i) Except as provided in clause (ii), the period under this 
  subparagraph is the 6-month period beginning on the date of the 
  enactment of the Transparency and Security in Mortgage Registration Act 
  of 2010.
      ``(ii) In the case of any mortgage owned, guaranteed, or 
  securitized by the corporation for which the servicer, holder, or 
  creditor has demonstrated to the corporation, in accordance with 
  standards established by the Director of the Federal Housing Finance 
  Agency, that compliance with subparagraph (B) by the expiration of such 
  6-month period will cause a severe threat to the continued financial 
  viability of such entity, the period under this subparagraph shall be 
  the period that begins on such date of enactment and has such duration 
  as determined by the corporation, in accordance with standards 
  established by the Director, but in no case has a duration longer than 
  12 months.
      ``(D) Not later than the expiration of the 6-month period referred 
  to in subparagraph (C)(i), the corporation shall submit a report 
  detailing its compliance with subparagraph (B) to the Congress, the 
  Director of the Federal Housing Finance Agency, the Financial Stability 
  Oversight Council, and the Director of the Bureau of Consumer Financial 
  Protection of the Federal Reserve System, which shall describe any 
  extensions of the period for compliance with subparagraph (B) granted 
  pursuant to subparagraph (C).
      ``(E) For purposes of this paragraph, the following definitions 
  shall apply:
              ``(i) The term `MERS' means the Mortgage Electronic 
          Registration Systems, Inc., or any successor entity of such 
          corporation.
              ``(ii) The term `MERS mortgage' means any mortgage--
                      ``(I) for which the MERS is, or was at any time, 
                  the original or nominal mortgagee or mortgagee of 
                  record under the mortgage;
                      ``(II) that is, or was at any time, assigned to or 
                  recorded in the MERS; or
                      ``(III) for which the MERS is, or was at any time, 
                  acting as nominee in the county land records for the 
                  lender or servicer of the mortgage.''.
              (2) Freddie mac.--Section 305(a) of the Federal Home Loan 
          Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by 
          adding at the end the following new paragraph:
      ``(6)(A) After the date of the enactment of the Transparency and 
  Security in Mortgage Registration Act of 2010, 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 creditor for 
  any expense incurred in the carrying out or recording such an 
  assignment.
      ``(C)(i) Except as provided in clause (ii), the period under this 
  subparagraph is the 6-month period beginning on the date of the 
  enactment of the Transparency and Security in Mortgage Registration Act 
  of 2010.
      ``(ii) In the case of any mortgage owned, guaranteed, or 
  securitized by the Corporation for which the servicer, holder, or 
  creditor has demonstrated to the Corporation, in accordance with 
  standards established by the Director of the Federal Housing Finance 
  Agency, that compliance with subparagraph (B) by the expiration of such 
  6-month period will cause a severe threat to the continued financial 
  viability of such entity, the period under this subparagraph shall be 
  the period that begins on such date of enactment and has such duration 
  as determined by the Corporation, in accordance with standards 
  established by the Director, but in no case has a duration longer than 
  12 months.
      ``(D) Not later than the expiration of the 6-month period referred 
  to in subparagraph (C)(i), the Corporation shall submit a report 
  detailing its compliance with subparagraph (B) to the Congress, the 
  Director of the Federal Housing Finance Agency, the Financial Stability 
  Oversight Council, and the Director of the Bureau of Consumer Financial 
  Protection of the Federal Reserve System, which shall describe any 
  extensions of the period for compliance with subparagraph (B) granted 
  pursuant to subparagraph (C).
      ``(E) For purposes of this paragraph, the following definitions 
  shall apply:
              ``(i) The term `MERS' means the Mortgage Electronic 
          Registration Systems, Inc., or any successor entity of such 
          corporation.
              ``(ii) The term `MERS mortgage' means any mortgage--
                      ``(I) for which the MERS is, or was at any time, 
                  the original or nominal mortgagee or mortgagee of 
                  record under the mortgage;
                      ``(II) that is, or was at any time, assigned to or 
                  recorded in the MERS; or
                      ``(III) for which the MERS is, or was at any time, 
                  acting as nominee in the county land records for the 
                  lender or servicer of the mortgage.''.
              (3) Regulations.--Not later than the expiration of the 90-
          day period beginning on the date of the enactment of this Act, 
          the Director of the Federal Housing Finance Agency shall issue 
          any regulations necessary to carry out the amendments made by 
          paragraphs (1) and (2). In issuing such regulations, the 
          Director shall consult and coordinate with the Secretary of 
          Housing and Urban Development to ensure that the regulations 
          issued by the Director and the regulations issued by the 
          Secretary pursuant to subsection (b)(2) of this section are 
          uniform and consistent to maximum extent possible.
      (b) Ginnie Mae.--
              (1) Prohibition.--Section 302(c) of the National Housing 
          Act (12 U.S.C. 1717(c)) is amended by adding at the end the 
          following new paragraph:
      ``(6)(A) After the date of the enactment of the Transparency and 
  Security in Mortgage Registration Act of 2010, the Association may not 
  newly guarantee the payment of principal of or interest on any trust 
  certificate or other security based or backed by a trust or pool that 
  contains, or purchase or acquire, any MERS mortgage.
      ``(B)(i) After the expiration of the period under subparagraph (C), 
  MERS shall not be the named mortgagee or mortgagee of record on any 
  mortgage owned or held by the Association or on any mortgage contained 
  in a pool backing or on which is based any trust certificate or other 
  security the payment of principal of or interest on which is guaranteed 
  by the Association.
      ``(ii) Not later than the expiration of such period, the 
  Association shall require that all mortgage loans that are owned or 
  held at such time by the Association, or that at such time are 
  contained in a trust or pool backing or on which is based a trust 
  certificate or other security the payment of principal of or interest 
  on which is guaranteed by the Association, 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 
  Association. The Association shall not reimburse the servicer, holder, 
  or creditor for any expense incurred in the carrying out or recording 
  such an assignment.
      ``(C)(i) Except as provided in clause (ii), the period under this 
  subparagraph is the 6-month period beginning on the date of the 
  enactment of the Transparency and Security in Mortgage Registration Act 
  of 2010.
      ``(ii) In the case of any mortgage owned or held by the 
  Association, or contained in a trust or pool backing or on which is 
  based a trust certificate or other security the payment of principal of 
  or interest on which is guaranteed by the Association, for which the 
  servicer, holder, or creditor has demonstrated to the Association, in 
  accordance with standards established by the Secretary, that compliance 
  with subparagraph (B) by the expiration of such 6-month period will 
  cause a severe threat to the continued financial viability of such 
  entity, the period under this subparagraph shall be the period that 
  begins on such date of enactment and has such duration as determined by 
  the Association, in accordance with standards established by the 
  Secretary, but in no case has a duration longer than 12 months.
      ``(D) Not later than the expiration of the 6-month period described 
  in subparagraph (C)(i), the Association submit a report detailing its 
  compliance with subparagraph (B) to the Congress, the Secretary, the 
  Financial Stability Oversight Council, and the Director of the Bureau 
  of Consumer Financial Protection of the Federal Reserve System, which 
  shall describe any extensions of the period for compliance with 
  subparagraph (B) granted pursuant to subparagraph (C).
      ``(E) For purposes of this paragraph, the following definitions 
  shall apply:
              ``(i) The term `MERS' means the Mortgage Electronic 
          Registration Systems, Inc., or any successor entity of such 
          corporation.
              ``(ii) The term `MERS mortgage' means any mortgage--
                      ``(I) for which the MERS is, or was at any time, 
                  the original or nominal mortgagee or mortgagee of 
                  record under the mortgage;
                      ``(II) that is, or was at any time, assigned to or 
                  recorded in the MERS; or
                      ``(III) for which the MERS is, or was at any time, 
                  acting as nominee in the county land records for the 
                  lender or servicer of the mortgage.''.
              (2) Regulations.--Not later than the expiration of the 90-
          day period beginning on the date of the enactment of this Act, 
          the Secretary of Housing and Urban Development shall issue any 
          regulations necessary to carry out the amendments made by 
          paragraphs (1) and (2). In issuing such regulations, the 
          Secretary shall consult and coordinate with the Director of the 
          Federal Housing Finance Agency to ensure that the regulations 
          issued by the Secretary and the regulations issued by the 
          Director pursuant to subsection (a)(3) of this section are 
          uniform and consistent to maximum extent possible
  
  SEC. 3. HUD STUDY.
  
      (a) Study.--The Secretary of Housing and Urban Development, in 
  consultation with the Comptroller General of the United States, shall 
  conduct a study to analyze and determine--
              (1) the impacts of the lack of electronic records and 
          uniform standards found in local land title recordation systems 
          currently used in the various States;
              (2) any progress States have made in developing electronic 
          land title recordation systems for their localities that 
          contain uniform standards, and any findings and conclusions and 
          best practices resulting from such development;
              (3) the current oversight role of the Federal Government in 
          the transfer and recordation of land titles;
              (4) opportunities, and the feasibility of such 
          opportunities, that may be present to leverage progress made by 
          some States and localities to create an electronic land title 
          recordation system, including through--
                      (A) a system that would maintain all previous 
                  records of the land-property without invalidating, 
                  interfering with, or preempting State real property law 
                  governing the transfer and perfection of land title; 
                  and
                      (B) further actions by the States or by the Federal 
                  Government, or coordinated actions of both; and
              (5) the feasibility of creating a Federal land title 
          recordation system for property transfers that would maintain 
          all previous records of the land-property without invalidating, 
          interfering with, or preempting State real property law 
          governing the transfer and perfection of land title.
      (b) Report.--Not later than the expiration of the 12-month period 
  beginning on the date of the enactment of this Act, the Secretary of 
  Housing and Urban Development, in consultation with the Comptroller 
  General of the United States, shall submit to the Congress a report on 
  the results and findings of the study conducted under this section.
target: Transparency and Security in Mortgage Registration Act of 2010 - Amends the National Housing Act to prohibit the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) from purchasing, acquiring, newly lending on the security of, newly investing in securities consisting of, or otherwise newly dealing in any Mortgage Electronic Registration System, Inc. (MERS) mortgage or mortgages.
  
  Prohibits the Government National Mortgage Association (Ginnie Mae) from newly guaranteeing the payment of principal of or interest on any trust certificate or other security based or backed by a trust or pool that contains, or purchase or acquire, any MERS mortgage.
  
  Directs Fannie Mae, Freddie Mac, and Ginnie Mae to require all their current MERS mortgages to be assigned to the proper servicer, holder, or creditor.
  
  Directs the Secretary of Housing and Urban Development (HUD) to study and report to Congress to analyze and determine: (1) the impacts of the lack of electronic records and uniform standards found in local land title recordation systems currently used in the various states; (2) any progress states have made in developing electronic land title recordation systems containing uniform standards; (3) the current oversight role of the federal government in the transfer and recordation of land titles; and (4) the feasibility of creating a federal land title recordation system for property transfers that would maintain all previous records of the land-property without invalidating, interfering with, or preempting state real property law governing the transfer and perfection of land title.
feat_title: 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.