Secondary Market Facility for Residential Mortgages Act of 2011

[AI summary unavailable — showing source text] Secondary Market Facility for Residential Mortgages Act of 2011 - Establishes a Secondary Market Facility for Residential Mortgages as an instrumentality of the federal government, subject to supervision by the Federal Housing Finance Agency (FHFA) Board, also established by this Act. Requires the Facility to purchase residential mortgages on single-family housing, as well as residential mortgages on multifamily housing, that are originated by approved sellers. Authorizes the Facility to issue mortgage-backed securities. Prohibits the Facility from engaging in mortgage origination. Requires the FHFA Board to limit the residential mortgages that may be purchased by the Facility to safe and sound mortgages within mortgage product types and classifications the FHFA Board has approved in advance. Directs the FHFA Board to require the Facility to obtain its approval before initially offering any product. Prohibits FHFA Board regulations from considering a mortgage on single-family housing safe and sound if the outstanding principal balance at the time of purchase by the Facility exceeds 80% of the sale price, unless the seller: (1) retains at least a 10% participation, (2) the aggregate…