
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: 12USC4601]

 
                       TITLE 12--BANKS AND BANKING
 
              CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
 
         SUBCHAPTER I--SUPERVISION AND REGULATION OF ENTERPRISES
 
                    Part C--Miscellaneous Provisions
 
Sec. 4601. Review of underwriting guidelines


(a) Study

    Each of the enterprises shall conduct a study to review the 
underwriting guidelines of the enterprise. The studies shall examine--
        (1) the extent to which the underwriting guidelines prevent or 
    inhibit the purchase or securitization of mortgages for housing 
    located in mixed-use, urban center, and predominantly minority 
    neighborhoods and for housing for low- and moderate-income families;
        (2) the standards employed by private mortgage insurers and the 
    extent to which such standards inhibit the purchase and 
    securitization by the enterprises of mortgages described in 
    paragraph (1); and
        (3) the implications of implementing underwriting standards 
    that--
            (A) establish a downpayment requirement for mortgagors of 5 
        percent or less;
            (B) allow the use of cash on hand as a source for 
        downpayments; and
            (C) approve borrowers who have a credit history of 
        delinquencies if the borrower can demonstrate a satisfactory 
        credit history for at least the 12-month period ending on the 
        date of the application for the mortgage.

(b) Report

    Not later than the expiration of the 1-year period beginning on 
October 28, 1992, each enterprise shall submit to the Secretary, the 
Committee on Banking, Finance and Urban Affairs of the House of 
Representatives, and the Committee on Banking, Housing, and Urban 
Affairs of the Senate a report regarding the study conducted by the 
enterprise under subsection (a) of this section. Each report shall 
include any recommendations of the enterprise for better meeting the 
housing needs of low- and moderate-income families.

(Pub. L. 102-550, title XIII, Sec. 1354, Oct. 28, 1992, 106 Stat. 3970.)

                         Change of Name

    Committee on Banking, Finance and Urban Affairs of House of 
Representatives treated as referring to Committee on Banking and 
Financial Services of House of Representatives by section 1(a) of Pub. 
L. 104-14, set out as a note preceding section 21 of Title 2, The 
Congress. Committee on Banking and Financial Services of House of 
Representatives abolished and replaced by Committee on Financial 
Services of House of Representatives, and jurisdiction over matters 
relating to securities and exchanges and insurance generally transferred 
from Committee on Energy and Commerce of House of Representatives by 
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
