12 U.S.C. § 4565 — Single-family housing goals

**(a) In general** The Director shall, by regulation, establish annual goals for the purchase by each enterprise of the following types of mortgages for the following categories of families: (1) **Purchase-money mortgages** — A goal for purchase of conventional, conforming, single-family, purchase money mortgages financing owner-occupied housing for each of the following categories of families: (A) Low-income families. (B) Families that reside in low-income areas. (C) Very low-income families. (2) **Refinancing mortgages** — A goal for purchase of conventional, conforming mortgages on owner-occupied, single-family housing for low-income families that are given to pay off or prepay an existing loan secured by the same property. **(b) Goals as a percentage of total mortgage purchases** The goals established under paragraphs (1) and (2) of subsection (a) shall be established as a percentage of the total number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by the enterprise, or as percentage of the total number of conventional, single-family, owner-occupied refinance mortgages purchased by the enterprise, as applicable, that are mortgages for the types of families specified in paragraphs (1) and (2) of subsection (a). **(c) Single-family, owner-occupied rental housing units** The Director shall require each enterprise to report the number of rental housing units affordable to low-income families each year which are contained in mortgages purchased by the enterprise financing 2- to 4-unit single-family, owner-occupied properties and may, by regulation, establish additional requirements relating to such units. **(d) Determination of compliance** (1) **In general** — The Director shall determine, for each year that the housing goals under this section are in effect pursuant to [section 4561(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4561/a&num=0&edition=prelim), whether each enterprise has complied with each such goal established under subsection (a) of this section and any additional requirements which may be established under subsection (c) of this section. (2) **Purchase-money mortgage goals** — An enterprise shall be considered to be in compliance with a housing goal under subparagraph (A), (B), or (C) of subsection (a)(1) for a year only if, for the type of family described in such subparagraph, the percentage of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by the enterprise in such year that serve such families, meets or exceeds the target for the year for such type of family that is established under subsection (e). (3) **Refinance goal** — An enterprise shall be considered to be in compliance with the refinance goal under subsection (a)(2) for a year only if the percentage of the number of conventional, conforming, single-family, owner-occupied refinance mortgages purchased by the enterprise in such year that serve low-income families meets or exceeds the target for the year that is established under subsection (e). **(e) Annual targets** (1) **In general** — The Director shall, by regulation, establish annual targets for each goal and subgoal under this section, provided that the Director shall not set prospective targets longer than three years. In establishing such targets, the Director shall not consider segments of the market determined to be unacceptable or contrary to good lending practices, inconsistent with safety and soundness, or unauthorized for purchase by the enterprises. (2) **Goals targets** (A) *Calculation* — The Director shall calculate, for each of the types of families described in subsection (a), the percentage, for each of the three years that most recently precede such year and for which information under the Home Mortgage Disclosure Act of 1975 [[12 U.S.C. 2801](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2801&num=0&edition=prelim) et seq.] is publicly available— (i) of the number of conventional, conforming, single-family, owner-occupied purchase money mortgages originated in such year that serve such type of family, or (ii) the number of conventional, conforming, single-family, owner-occupied refinance mortgages originated in such year that serve low-income families, as applicable, as determined by the Director using the information obtained and determined pursuant to paragraphs (4) and (5). (B) *Establishment of goal targets* — The Director shall, by regulation, establish targets for each of the goal categories, taking into consideration the calculations under subparagraph (A) and the following factors: (i) National housing needs. (ii) Economic, housing, and demographic conditions, including expected market developments. (iii) The performance and effort of the enterprises toward achieving the housing goals under this section in previous years. (iv) The ability of the enterprise to lead the industry in making mortgage credit available. (v) Such other reliable mortgage data as may be available. (vi) The size of the purchase money conventional mortgage market, or refinance conventional mortgage market, as applicable, serving each of the types of families described in subsection (a), relative to the size of the overall purchase money mortgage market or the overall refinance mortgage market, respectively. (vii) The need to maintain the sound financial condition of the enterprises. (3) **Authority to adjust targets** — The Director may, by regulation, adjust the percentage targets previously established by regulation pursuant to paragraph (2)(B) for any year, to reflect subsequent available data and market developments. (4) **HMDA information** — The Director shall annually obtain information submitted in compliance with the Home Mortgage Disclosure Act of 1975 [[12 U.S.C. 2801](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2801&num=0&edition=prelim) et seq.] regarding conventional, conforming, single-family, owner-occupied, purchase money and refinance mortgages originated and purchased for the previous year. (5) **Conforming mortgages** — In determining whether a mortgage is a conforming mortgage for purposes of this paragraph, the Director shall consider the original principal balance of the mortgage loan to be the principal balance as reported in the information referred to in paragraph (4), as rounded to the nearest thousand dollars. **(f) Notice of determination and enterprise comment** (1) **Notice** — Within 30 days of making a determination under subsection (d) regarding compliance of an enterprise for a year with a housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (e). (2) **Comment period** — The Director shall provide each enterprise an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice. **(g) Use of borrower income** In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of [section 4566 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section4566&num=0&edition=prelim)), the Director shall consider a mortgagor’s income to be such income at the time of origination of the mortgage. **(h) Consideration of properties with rental units** Mortgages financing two- to four-unit owner-occupied properties shall count toward the achievement of the single-family housing goals under this section, if such properties otherwise meet the requirements under this section, notwithstanding the use of one or more units for rental purposes. **(i) Goals credit** The Director shall determine whether an enterprise shall receive full, partial, or no credit for a transaction toward achievement of any of the housing goals established pursuant to section 4562 and 4563 of this title. In making any such determination, the Director shall consider whether a transaction or activity of an enterprise is substantially equivalent to a mortgage purchase and either (1) creates a new market, or (2) adds liquidity to an existing market. No credit toward the achievement of the housing goals and subgoals established under this section may be given to the purchase of mortgages, including any transaction or activity of an enterprise determined to be substantially equivalent to a mortgage purchase, that is determined to be unacceptable or contrary to good lending practices, inconsistent with safety and soundness, or unauthorized for purchase by the enterprises, pursuant to regulations issued by the Director.