Secondary Mortgage Market Enhancement Act
The Secondary Mortgage Market Enhancement Act of 1984 was an Act of Congress intended to improve the marketability of private label mortgage-backed security passthroughs.
It declared nationally recognized statistical rating organization AA-rated mortgage-backed securities to be legal investments equivalent to Treasury securities and other federal government bonds for federally chartered banks, state-chartered financial institutions unless overridden by state law before October 1991, and Department of Labor-regulated pension funds. It is mentioned as a significant contributing factor in the subprime mortgage crisis.
