
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC4562]

 
                       TITLE 12--BANKS AND BANKING
 
              CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
 
         SUBCHAPTER I--SUPERVISION AND REGULATION OF ENTERPRISES
 
                     Part B--Authority of Secretary
 
                        subpart 2--housing goals
 
Sec. 4562. Low- and moderate-income housing goal


(a) In general

    The Secretary shall establish an annual goal for the purchase by 
each enterprise of mortgages on housing for low- and moderate-income 
families. The Secretary may establish separate specific subgoals within 
the goal under this section and such subgoals shall not be enforceable 
under the provisions of section 4566 of this title, any other provision 
of this chapter, or any provision of the Federal National Mortgage 
Association Charter Act [12 U.S.C. 1716 et seq.] or the Federal Home 
Loan Mortgage Corporation Act [12 U.S.C. 1451 et seq.].

(b) Factors to be applied

    In establishing the goal under this section, the Secretary shall 
consider--
        (1) national housing needs;
        (2) economic, housing, and demographic conditions;
        (3) the performance and effort of the enterprises toward 
    achieving the low- and moderate-income housing goal in previous 
    years;
        (4) the size of the conventional mortgage market serving low- 
    and moderate-income families relative to the size of the overall 
    conventional mortgage market;
        (5) the ability of the enterprises to lead the industry in 
    making mortgage credit available for low- and moderate-income 
    families; and
        (6) the need to maintain the sound financial condition of the 
    enterprises.

(c) Use of borrower and tenant income

                           (1) In general

        The Secretary shall monitor the performance of each enterprise 
    in carrying out this section and shall evaluate such performance 
    (for purposes of section 4566 of this title) based on--
            (A) in the case of an owner-occupied dwelling, the 
        mortgagor's income at the time of origination of the mortgage; 
        or
            (B) in the case of a rental dwelling--
                (i) the income of the prospective or actual tenants of 
            the property, where such data are available; or
                (ii) the rent levels affordable to low- and moderate-
            income families, where the data referred to in clause (i) 
            are not available.

                          (2) Affordability

        For the purpose of paragraph (1)(B)(ii), a rent level shall be 
    considered affordable if it does not exceed 30 percent of the 
    maximum income level of the income categories referred to in this 
    section, with appropriate adjustments for unit size as measured by 
    the number of bedrooms.

(d) Transition

                         (1) Interim target

        Notwithstanding any other provision of this section, during the 
    2-year period beginning on January 1, 1993, the annual target under 
    this section for low- and moderate-income mortgage purchases for 
    each enterprise shall be 30 percent of the total number of dwelling 
    units financed by mortgage purchases of the enterprise.

                          (2) Interim goal

        During such 2-year period, the Secretary shall establish a 
    separate annual goal for each enterprise, the achievement of which 
    shall require--
            (A) an enterprise that is not meeting the target under 
        paragraph (1) upon January 1, 1993, to improve its performance 
        relative to such target annually and, to the maximum extent 
        feasible, to meet such target at the conclusion of such 2-year 
        period; and
            (B) an enterprise that is meeting the target under paragraph 
        (1) upon January 1, 1993, to improve its performance relative to 
        the target.

                         (3) Implementation

        The Secretary shall establish any requirements necessary to 
    implement the transition provisions under this subsection by notice, 
    after providing the enterprises with an opportunity to review and 
    comment not less than 30 days before the issuance of such notice. 
    Such notice shall be issued not later than the expiration of the 90-
    day period beginning upon October 28, 1992, and shall be effective 
    upon issuance.

(Pub. L. 102-550, title XIII, Sec. 1332, Oct. 28, 1992, 106 Stat. 3956.)

                       References in Text

    This chapter, referred to in subsec. (a), was in the original ``this 
title'', meaning title XIII of Pub. L. 102-550, Oct. 28, 1992, 106 Stat. 
3941, which is classified principally to this chapter. For complete 
classification of title XIII to the Code, see Short Title note set out 
under section 4501 of this title and Tables.
    The Federal National Mortgage Association Charter Act, referred to 
in subsec. (a), is title III of act June 27, 1934, ch. 847, 48 Stat. 
1252, as amended, which is classified generally to subchapter III 
(Sec. 1716 et seq.) of chapter 13 of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1716 of this title and Tables.
    The Federal Home Loan Mortgage Corporation Act, referred to in 
subsec. (a), is title III of Pub. L. 91-351, July 24, 1970, 84 Stat. 
451, as amended, which is classified generally to chapter 11A (Sec. 1451 
et seq.) of this title. For complete classification of this Act to the 
Code, see Short Title and Statement of Purpose note set out under 
section 1451 of this title and Tables.


                             Effective Date

    Section 1338 of Pub. L. 102-550 provided that: ``The housing goals 
established under sections 1332(d), 1333(d), and 1334(d) [12 U.S.C. 
4562(d), 4563(d), 4564(d)] shall not become effective until January 1, 
1993.''

                  Section Referred to in Other Sections

    This section is referred to in sections 4544, 4561, 4565, 4566, 
4567, 4589 of this title.
