whether there is adequate first loss private capital for up to six months. This authority may not beexercised more than once in any given 3-year period.
Sec.206. General powers.
FMIC will have the general powers of a corporation.
All FMIC covered securities will be exempt securities under the SECinsofar as securities that are a direct obligation of or guaranteed by the U.S. are consideredexempt. Covered securities insured by FMIC are exempt from Qualified Residential Mortgagerequirements.
Oversight of Market ParticipantsSec.211. Approval of private mortgage insurers.
FMIC will establish standards for approving private mortgage insurers to provide private mortgage insurance on eligible mortgages.
Sec.212. Approval of servicers.
FMIC will establish standards approving servicers to administer eligible mortgages.
Sec.213. Approval of issuers.
FMIC will establish standards for approving issuers to issueFMIC-covered securities. FMIC will limit issuers to 15% of the total market as measured by thetotal outstanding principal balance at origination, with the exception of issuers which onlysecuritize loans originated by the issuer or an affiliate.
Sec.214. Approval of bond guarantors.
FMIC will establish standards for approving bondguarantors, who guarantee the timely payment of principal and interest on securities that arecollateralized by eligible mortgages and insured by FMIC.
Sec.215. Authority to establish FMIC Mutual Securitization Company.
The FMIC MutualSecuritization Company is created to meet the needs of credit unions, community and mid-size banks, and non-depository mortgage originators up to $15 billion in total consolidated assetswith respect to issuing covered securities. The Mutual will purchase eligible mortgage loansfrom member participants to securitize in a covered security.
Sec.216. Additional authority relating to oversight of market participants.
FMIC may alsodevelop, publish, and adopt additional standards or requirements to ensure competition,competitive pricing, and liquidity, transparency, and access to mortgage credit in the secondarymarket.
Sec.217. Civil money penalties.
FMIC may impose a civil money penalty on any approved private mortgage insurer, servicer, issuer, or bond guarantor that violates any standard adopted pursuant to this Act.
Sec.218. Protection of privilege and other matters relating to disclosures by marketparticipants.
FMIC may share information with the Federal banking agencies in a consultative process.