Title I - Authorizing the Treasury Department to Buy Mortgage-Related Assets
Sec. 5. Rights; management; sale of troubled assets.
EXERCISE OF RIGHTS.The Secretary may, at any time, exercise any rights received in connection with troubled assets purchased under this Act.
MANAGEMENT OF TROUBLED ASSETS.
IN GENERAL.Except as provided in paragraph (2), the Secretary shall have authority to manage troubled assets purchased under this Act, including revenues and portfolio risks there from.
IN GENERAL.The Corporation, shall manage all residential mortgages and residential mortgage-backed securities purchased by the Secretary under this Act.
REIMBURSEMENT OF COSTS.All costs and expenses of the Corporation in carrying out this paragraph shall be reimbursed to the Corporation by the Secretary.
SYSTEMATIC APPROACH.In carrying out this paragraph, the Corporation shall utilize a systematic approach for preventing foreclosures and ensuring long-term, sustainable homeownership through loan modifications and use of the HOPE for Homeowners Program established under section 257 of the National Housing Act and any other programs that may be available for such purposes.
REPORTS TO CONGRESS.The Corporation shall provide to Congress a monthly report on its activities under this paragraph during the reporting period, including specific information on the number and types of loan modifications made and the number of actual foreclosures occurring with respect to such loans during the reporting period.
SALE OF TROUBLED ASSETS.The Corporation may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions, or other financial transactions in regard to any troubled asset managed by the Corporation under this paragraph.
ACQUISITION OF SECURITIZATION POOLS AND MORTGAGELOANS.The Secretary shall, to the extent practicable, acquire
sufficient ownership or control of pooled residential mortgage loans, or a securitization vehicle for such loans so that the Corporation has authority to modify the underlying residential mortgage loans, either directly or through a designee; and
whole residential mortgage loans, so that the Corporation may use its authority to modify the underlying residential mortgage loans, either directly or through a designee.
SALE OF TROUBLED ASSETS.The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions, or other financial transactions in regard to any troubled asset purchased under this Act.
TRANSFER OF A PERCENTAGE OF PROFITS.
DEPOSITS.Not less than 20 percent of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).
USE OF DEPOSITS.Of the amount referred to in paragraph (1)
65 percent shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act of 1992 (12 U.S.C. 4568); and
35 percent shall be deposited into the Capital Magnet Fund established under section 1339 of that Act (12 U.S.C. 4569).
REMAINDER DEPOSITED IN THE TREASURY.All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.