Protecting America's Property Rights Act

This bill sets new rules for the federal mortgage enterprises that buy and sell conventional home loans. When they manage risks tied to property liens and title problems (like mistakes in ownership records or invalid claims on a home), they must use third‑party products that are regulated by a state insurance authority or another state regulator. If they buy a loan that doesn’t meet this rule, they have to hold extra capital equal to 1% of that loan’s unpaid balance, which makes risky loans more costly for them to hold. Within 180 days, the regulator must issue rules to put these changes in place and make sure the enterprises verify that any products they use are properly regulated.

Key points:

• Who is affected: The federal mortgage enterprises that purchase conventional mortgages; indirectly, lenders and homebuyers using those loans.
• What changes: They must use regulated lien/title protection products; otherwise, they must hold an extra 1% in capital on those loans.
• When: The regulator must issue implementing rules within 180 days of the law taking effect.