
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: 12USC4563]

 
                       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. 4563. Special affordable housing goal


(a) Establishment

                           (1) In general

        The Secretary shall establish a special annual goal designed to 
    adjust the purchase by each enterprise of mortgages on rental and 
    owner-occupied housing to meet the then-existing unaddressed needs 
    of, and affordable to, low-income families in low-income areas and 
    very low-income families. The special affordable housing goal 
    established under this section for an enterprise shall not be less 
    than 1 percent of the dollar amount of the mortgage purchases by the 
    enterprise for the previous year.

                            (2) Standards

        In establishing the special affordable housing goal for an 
    enterprise, the Secretary shall consider--
            (A) data submitted to the Secretary in connection with the 
        special affordable housing goal for previous years;
            (B) the performance and efforts of the enterprise toward 
        achieving the special affordable housing goal in previous years;
            (C) national housing needs within the categories set forth 
        in this section;
            (D) the ability of the enterprise to lead the industry in 
        making mortgage credit available for low-income and very low-
        income families; and
            (E) the need to maintain the sound financial condition of 
        the enterprise.

(b) Full credit activities

                           (1) In general

        The Secretary shall give full credit toward achievement of the 
    special affordable housing goal under this section (for purposes of 
    section 4566 of this title) to the following activities:

        (A) Federally related mortgages

            The purchase or securitization of federally insured or 
        guaranteed mortgages, if--
                (i) such mortgages cannot be readily securitized through 
            the Government National Mortgage Association or any other 
            Federal agency;
                (ii) participation of the enterprise substantially 
            enhances the affordability of the housing subject to such 
            mortgages; and
                (iii) the mortgages involved are on housing that 
            otherwise qualifies under such goal to be considered for 
            purposes of such goal.

        (B) Portfolios

            The purchase or refinancing of existing, seasoned portfolios 
        of loans, if--
                (i) the seller is engaged in a specific program to use 
            the proceeds of such sales to originate additional loans 
            that meet such goal; and
                (ii) such purchases or refinancings support additional 
            lending for housing that otherwise qualifies under such goal 
            to be considered for purposes of such goal.

        (C) RTC and FDIC loans

            The purchase of direct loans made by the Resolution Trust 
        Corporation or the Federal Deposit Insurance Corporation, if 
        such loans--
                (i) are not guaranteed by such agencies themselves or 
            other Federal agencies;
                (ii) are made with recourse provisions similar to those 
            offered through private mortgage insurance or other 
            conventional sellers; and
                (iii) are made for the purchase of housing that 
            otherwise qualifies under such goal to be considered for 
            purposes of such goal.

                            (2) Exclusion

        No credit toward the achievement of the special affordable 
    housing goal may be given to the purchase or securitization of 
    mortgages associated with the refinancing of the existing enterprise 
    portfolios.

(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-income and very 
            low-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) FNMA mortgage purchases

        Notwithstanding any other provision of this section, during the 
    2-year period beginning on January 1, 1993, the special affordable 
    housing goal for the Federal National Mortgage Association shall 
    include mortgage purchases of not less than $2,000,000,000 (for such 
    2-year period), with one-half of such purchases consisting of 
    mortgages on single family housing and one-half consisting of 
    mortgages on multifamily housing.

                    (2) FHLMC mortgage purchases

        Notwithstanding any other provision of this section, during the 
    2-year period beginning on January 1, 1993, the special affordable 
    housing goal for the Federal Home Loan Mortgage Corporation shall 
    include mortgage purchases of not less than $1,500,000,000 (for such 
    2-year period), with one-half of such purchases consisting of 
    mortgages on single family housing and one-half consisting of 
    mortgages on multifamily housing.

          (3) Income characteristics for mortgage purchases

        (A) Multifamily mortgages

            The special affordable housing goals established under 
        paragraphs (1) and (2) shall provide that, of mortgages on 
        multifamily housing that are purchased and contribute to the 
        achievement of such goals--
                (i) 45 percent shall be mortgages on multifamily housing 
            affordable to low-income families; and
                (ii) 55 percent shall be mortgages on multifamily 
            housing in which--
                    (I) at least 20 percent of the units are affordable 
                to families whose incomes do not exceed 50 percent of 
                the median income for the area; or
                    (II) at least 40 percent of the units are affordable 
                to very low-income families.

        (B) Single family mortgages

            The special affordable housing goals established under 
        paragraphs (1) and (2) shall provide that, of mortgages on 
        single family housing that are purchased and contribute to the 
        achievement of such goals--
                (i) 45 percent shall be mortgages of low-income families 
            who live in census tracts in which the median income does 
            not exceed 80 percent of the area median income; and
                (ii) 55 percent shall be mortgages of very low-income 
            families.

        (C) Compliance with special affordable housing goals

            Only the portion of mortgages on multifamily housing 
        purchased by an enterprise that are attributable to units 
        affordable to low-income families shall contribute to the 
        achievement of the special affordable housing goals under 
        subparagraph (A)(ii).

                         (4) 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. 1333, Oct. 28, 1992, 106 Stat. 3958.)


                             Effective Date

    Housing goals established under subsec. (d) of this section 
effective Jan. 1, 1993, see section 1338 of Pub. L. 102-550, set out as 
a note under section 4562 of this title.

                  Section Referred to in Other Sections

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