12 U.S.C. § 1456 — Immunity of Corporation; audits and re-

Page 351 TITLE 12—BANKS AND BANKING § 1456 clude such purchases and the exercise of any rights in connection with such purchases. Any funds expended for the purchase of, or modi- fications to, obligations and securities, or the exercise of any rights received in connection with such purchases under this subsection shall be deemed appropriated at the time of such purchase, modification, or exercise. (4) Termination of authority The authority under this subsection (l), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009. (5) Authority of the Director with respect to executive compensation The Director shall have the power to ap- prove, disapprove, or modify the executive compensation of the Corporation, as defined under Regulation S-K, 17 C.F.R. 229. (Pub. L. 91–351, title III, § 306, July 24, 1970, 84 Stat. 455; Pub. L. 96–153, title III, § 316(a), Dec. 21, 1979, 93 Stat. 1118; Pub. L. 97–289, § 6, Oct. 6, 1982, 96 Stat. 1232; Pub. L. 98–35, § 5, May 26, 1983, 97 Stat. 198; Pub. L. 98–440, title II, §§ 210, 211, Oct. 3, 1984, 98 Stat. 1697; Pub. L. 100–242, title IV, § 441(b), Feb. 5, 1988, 101 Stat. 1921; Pub. L. 101–73, title VII, § 731(g)–(i), Aug. 9, 1989, 103 Stat. 434; Pub. L. 102–550, title XIII, § 1382(n), Oct. 28, 1992, 106 Stat. 4005; Pub. L. 110–289, div. A, title I, §§ 1117(b), 1161(c)(2), July 30, 2008, 122 Stat. 2684, 2780; Pub. L. 111–203, title XIII, § 1304(b), July 21, 2010, 124 Stat. 2134.) Editorial Notes REFERENCES IN TEXT Section 1452(c) of this title, referred to in subsec. (i), was redesignated section 1452(d) of this title by Pub. L. 101–73, title VII, § 731(c)(1), Aug. 9, 1989, 103 Stat. 431. This chapter, referred to in subsec. (l)(1)(A), was in the original ‘‘this Act’’ and has been translated as read- ing ‘‘this title’’, meaning title III of Pub. L. 91–351, to reflect the probable intent of Congress. AMENDMENTS 2010—Subsec. (l)(2)(C), (D). Pub. L. 111–203 added sub- par. (C) and redesignated former subpar. (C) as (D). 2008—Subsec. (c)(2). Pub. L. 110–289, § 1161(c)(2)(A), in- serted ‘‘the’’ after ‘‘Secretary of’’. Subsec. (i). Pub. L. 110–289, § 1161(c)(2)(B)(ii), made technical amendment to reference in original act which appears in text as reference to section 4516 of this title. Pub. L. 110–289, § 1161(c)(2)(B)(i), made technical amendment to reference in original act which appears in text as reference to section 1455(c) of this title. Amendment was given effect, notwithstanding error in directory language which directed substitution of ‘‘sec- tion 306(c)’’ for ‘‘section 1316(c)’’ in the original. Subsec. (j)(2). Pub. L. 110–289, § 1161(c)(2)(C), sub- stituted ‘‘or substantially’’ for ‘‘of substantially’’. Subsec. (l). Pub. L. 110–289, § 1117(b), added subsec. (l). 1992—Subsec. (h). Pub. L. 102–550, § 1382(n)(1), des- ignated existing provisions as par. (1) and added par. (2). Subsec. (i). Pub. L. 102–550, § 1382(n)(2), substituted ‘‘sections 1452(c) and 1455(c) of this title and assess- ments pursuant to section 4516 of this title’’ for ‘‘sec- tion 1452(c) or 1455(c) of this title’’. 1989—Subsec. (c). Pub. L. 101–73, § 731(g), amended sub- sec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘The Federal home loan banks shall, to such extent as the Board of Directors may prescribe, guar- antee the faithful and timely performance by the Cor- poration of any obligation or undertaking of the Cor- poration on or with respect to any security (which term as used in this sentence shall not include the cap- ital stock referred to in section 1453 of this title).’’ Subsec. (f). Pub. L. 101–73, § 731(h), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as fol- lows: ‘‘The Corporation may have preferred stock on such terms and conditions as the Board of Directors shall prescribe. Any preferred stock shall not affect the status of the capital stock issued under section 1453 of this title as nonvoting common stock, and shall not be entitled to vote with respect to the election of any member of the Board of Directors. Such preferred stock, or any class thereof, may have such terms as would be required for listing of preferred stock on the New York Stock Exchange, except that this sentence does not apply to any preferred stock, or class thereof, the initial sale of which is made directly or indirectly by the Corporation exclusively to any Federal Home Loan Bank or Banks.’’ Subsecs. (j), (k). Pub. L. 101–73, § 731(i), added subsecs. (j) and (k). 1988—Subsec. (i). Pub. L. 100–242 added subsec. (i). 1984—Subsec. (f). Pub. L. 98–440, § 211, inserted provi- sions that preferred stock shall not be entitled to vote with respect to the election of any member of the Board of Directors and that such preferred stock, or any class thereof, may have such terms as would be re- quired for listing of preferred stock on the New York Stock Exchange, except for any preferred stock, or class thereof, the initial sale of which is made directly or indirectly by the Corporation exclusively to any Federal Home Loan Bank or Banks. Subsec. (h). Pub. L. 98–440, § 210, added subsec. (h). 1983—Subsec. (g). Pub. L. 98–35 added subsec. (g). 1982—Subsec. (f). Pub. L. 97–289 added subsec. (f). 1979—Subsec. (e). Pub. L. 96–153 added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. REPAYMENT OF FEES Pub. L. 111–203, title XIII, § 1304(d), July 21, 2010, 124 Stat. 2134, provided that: ‘‘Any periodic commitment fee or any other fee or assessment paid by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation to the Secretary of the Treasury as a result of any preferred stock purchase agreement, mortgage-backed security purchase program, or any other program or activity authorized or carried out pursuant to the authorities granted to the Secretary of the Treasury under section 1117 of the Housing and Eco- nomic Recovery Act of 2008 (Public Law 110–289; 122 Stat. 2683) [amending this section and sections 1431 and 1719 of this title], including any fee agreed to by con- tract between the Secretary and the Association or Corporation, shall be deposited in the General Fund of the Treasury where such amounts shall be— ‘‘(1) dedicated for the sole purpose of deficit reduc- tion; and ‘‘(2) prohibited from use as an offset for other spending increases or revenue reductions.’’ [For definitions of terms used in section 1304(d) of Pub. L. 111–203, set out above, see section 5301 of this title.] § 1456. Immunity of Corporation; audits and re- porting requirements; data collection; Hous- ing Advisory Council (a) Rights and remedies of Corporation; State qualifications or similar statutes All rights and remedies of the Corporation, in- cluding without limitation on the generality of Page 352 TITLE 12—BANKS AND BANKING § 1456 the foregoing any rights and remedies of the Corporation on, under, or with respect to any mortgage or any obligation secured thereby, shall be immune from impairment, limitation, or restriction by or under (1) any law (except laws enacted by the Congress expressly in limi- tation of this sentence) which becomes effective after the acquisition by the Corporation of the subject or property on, under, or with respect to which such right or remedy arises or exists or would so arise or exist in the absence of such law, or (2) any administrative or other action which becomes effective after such acquisition. The Corporation is authorized to conduct its business without regard to any qualification or similar statute in any State. (b) Government audits; procedure; access to records, etc.; reimbursement of costs (1) The programs, activities, receipts, expendi- tures, and financial transactions of the Corpora- tion shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General. The representatives of the Government Accountability Office shall have ac- cess to all books, accounts, financial records, re- ports, files and all other papers, things, or prop- erty belonging to or in use by the Corporation and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. A report on each such audit shall be made by the Comptroller General to the Congress. The Cor- poration shall reimburse the Government Ac- countability Office for the full cost of any such audit as billed therefor by the Comptroller Gen- eral. (2) To carry out this subsection, the represent- atives of the Government Accountability Office shall have access, upon request to the Corpora- tion or any auditor for an audit of the Corpora- tion under subsection (d), to any books, ac- counts, financial records, reports, files, or other papers, things, or property belonging to or in use by the Corporation and used in any such audit and to any papers, records, files, and re- ports of the auditor used in such an audit. (c) Financial reports; submission to Director; contents (1) The Corporation shall submit to the Direc- tor of the Federal Housing Finance Agency an- nual and quarterly reports of the financial con- dition and operations of the Corporation which shall be in such form, contain such information, and be submitted on such dates as the Director shall require. (2) Each such annual report shall include— (A) financial statements prepared in accord- ance with generally accepted accounting prin- ciples; (B) any supplemental information or alter- native presentation that the Director may re- quire; and (C) an assessment (as of the end of the Cor- poration’s most recent fiscal year), signed by the chief executive officer and chief account- ing or financial officer of the Corporation, of— (i) the effectiveness of the internal control structure and procedures of the Corporation; and (ii) the compliance of the Corporation with designated safety and soundness laws. (3) The Corporation shall also submit to the Director any other reports required by the Di- rector pursuant to section 1314 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 [12 U.S.C. 4514]. (4) Each report of financial condition shall contain a declaration by the president, vice president, treasurer, or any other officer des- ignated by the Board of Directors of the Cor- poration to make such declaration, that the re- port is true and correct to the best of such offi- cer’s knowledge and belief. (d) Independent audits of financial statements (1) The Corporation shall have an annual inde- pendent audit made of its financial statements by an independent public accountant in accord- ance with generally accepted auditing stand- ards. (2) In conducting an audit under this sub- section, the independent public accountant shall determine and report on whether the financial statements of the Corporation (A) are presented fairly in accordance with generally accepted ac- counting principles, and (B) to the extent deter- mined necessary by the Director, comply with any disclosure requirements imposed under sub- section (c)(2)(B). (e) Mortgage data collection and reporting re- quirements (1) The Corporation shall collect, maintain, and provide to the Director of the Federal Hous- ing Finance Agency, in a form determined by the Director, data relating to its mortgages on housing consisting of 1 to 4 dwelling units. Such data shall include— (A) the income, census tract location, race, and gender of mortgagors under such mort- gages; (B) the loan-to-value ratios of purchased mortgages at the time of origination; (C) whether a particular mortgage purchased is newly originated or seasoned; (D) the number of units in the housing sub- ject to the mortgage and whether the units are owner-occupied; and (E) any other characteristics that the Sec- retary considers appropriate, to the extent practicable. (2) The Corporation shall collect, maintain, and provide to the Director of the Federal Hous- ing Finance Agency, in a form determined by the Director, data relating to its mortgages on housing consisting of more than 4 dwelling units. Such data shall include— (A) census tract location of the housing; (B) income levels and characteristics of ten- ants of the housing (to the extent practicable); (C) rent levels for units in the housing; (D) mortgage characteristics (such as the number of units financed per mortgage and the amount of loans); (E) mortgagor characteristics (such as non- profit, for-profit, limited equity cooperatives); (F) use of funds (such as new construction, rehabilitation, refinancing); (G) type of originating institution; and (H) any other information that the Sec- retary considers appropriate, to the extent practicable. Page 353 TITLE 12—BANKS AND BANKING § 1456 (3)(A) Except as provided in subparagraph (B), this subsection shall apply only to mortgages purchased by the Corporation after December 31, 1992. (B) This subsection shall apply to any mort- gage purchased by the Corporation after the date determined under subparagraph (A) if the mortgage was originated before such date, but only to the extent that the data referred in paragraph (1) or (2), as applicable, is available to the Corporation. (f) Report on housing activities; contents; public disclosure (1) The Corporation shall submit to the Com- mittee on Banking, Finance and Urban Affairs of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Director of the Federal Housing Finance Agency a report on its activities under subpart B of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 [12 U.S.C. 4561 et seq.]. (2) The report under this subsection shall— (A) include, in aggregate form and by appro- priate category, statements of the dollar vol- ume and number of mortgages on owner-occu- pied and rental properties purchased which re- late to each of the annual housing goals estab- lished under such subpart; (B) include, in aggregate form and by appro- priate category, statements of the number of families served by the Corporation, the income class, race, and gender of homebuyers served, the income class of tenants of rental housing (to the extent such information is available), the characteristics of the census tracts, and the geographic distribution of the housing fi- nanced; (C) include a statement of the extent to which the mortgages purchased by the Cor- poration have been used in conjunction with public subsidy programs under Federal law; (D) include statements of the proportion of mortgages on housing consisting of 1 to 4 dwelling units purchased by the Corporation that have been made to first-time home- buyers, as soon as providing such data is prac- ticable, and identifying any special programs (or revisions to conventional practices) facili- tating homeownership opportunities for first- time homebuyers; (E) include, in aggregate form and by appro- priate category, the data provided to the Di- rector of the Federal Housing Finance Agency under subsection (e)(1)(B); (F) compare the level of securitization versus portfolio activity; (G) assess underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures, that affect the purchase of mortgages for low- and moderate-income families, or that may yield disparate results based on the race of the borrower, including revisions thereto to promote affordable hous- ing or fair lending; (H) describe trends in both the primary and secondary multifamily housing mortgage mar- kets, including a description of the progress made, and any factors impeding progress, to- ward standardization and securitization of mortgage products for multifamily housing; (I) describe trends in the delinquency and de- fault rates of mortgages secured by housing for low- and moderate-income families that have been purchased by the Corporation, in- cluding a comparison of such trends with de- linquency and default information for mort- gage products serving households with in- comes above the median level that have been purchased by the Corporation, and evaluate the impact of such trends on the standards and levels of risk of mortgage products serving low- and moderate-income families; (J) describe in the aggregate the seller and servicer network of the Corporation, including the volume of mortgages purchased from mi- nority-owned, women-owned, and community- oriented lenders, and any efforts to facilitate relationships with such lenders; (K) describe the activities undertaken by the Corporation with nonprofit and for-profit or- ganizations and with State and local govern- ments and housing finance agencies, including how the Corporation’s activities support the objectives of comprehensive housing afford- ability strategies under section 12705 of title 42; and (L) include any other information that the Director of the Federal Housing Finance Agen- cy considers appropriate. (3)(A) The Corporation shall make each report under this subsection available to the public at the principal and regional offices of the Corpora- tion. (B) Before making a report under this sub- section available to the public, the Corporation may exclude from the report information that the Director of the Federal Housing Finance Agency has determined is proprietary informa- tion under section 1326 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 [12 U.S.C. 4546]. (g) Affordable Housing Advisory Council (1) Not later than 4 months after October 28, 1992, the Corporation shall appoint an Affordable Housing Advisory Council to advise the Corpora- tion regarding possible methods for promoting affordable housing for low- and moderate-in- come families. (2) The Affordable Housing Advisory Council shall consist of 15 individuals, who shall include representatives of community-based and other nonprofit and for-profit organizations and State and local government agencies actively engaged in the promotion, development, or financing of housing for low- and moderate-income families. (Pub. L. 91–351, title III, § 307, July 24, 1970, 84 Stat. 456; Pub. L. 101–73, title VII, § 731(j)(1), Aug. 9, 1989, 103 Stat. 435; Pub. L. 102–550, title XIII, § 1382(o)–(t), Oct. 28, 1992, 106 Stat. 4005–4008; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 110–289, div. A, title I, § 1161(c)(1), (3), July 30, 2008, 122 Stat. 2780.) Editorial Notes REFERENCES IN TEXT The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, referred to in subsec. (f)(1), is title XIII of Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3941. Subpart B of part 2 of subtitle A of the Act is clas- Page 354 TITLE 12—BANKS AND BANKING § 1457 sified generally to subpart 2 (§ 4561 et seq.) of part B of subchapter I of chapter 46 of this title. For complete classification of this Act to the Code, see Short Title note under section 4501 of this title and Tables. AMENDMENTS 2008—Subsec. (c)(1). Pub. L. 110–289, § 1161(c)(1), sub- stituted ‘‘Director of the Federal Housing Finance Agency’’ for ‘‘Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development’’. Subsec. (e)(1), (2). Pub. L. 110–289, § 1161(c)(3)(A), sub- stituted ‘‘to the Director of the Federal Housing Fi- nance Agency, in a form determined by the Director’’ for ‘‘to the Secretary, in a form determined by the Sec- retary’’ in introductory provisions. Subsec. (f)(1). Pub. L. 110–289, § 1161(c)(3)(B)(i), sub- stituted ‘‘and the Director of the Federal Housing Fi- nance Agency’’ for ‘‘and the Secretary’’. Subsec. (f)(2)(E), (L). Pub. L. 110–289, § 1161(c)(3)(B)(ii), substituted ‘‘the Director of the Federal Housing Fi- nance Agency’’ for ‘‘the Secretary’’. Subsec. (f)(3)(B). Pub. L. 110–289, § 1161(c)(3)(B)(iii), substituted ‘‘Director of the Federal Housing Finance Agency’’ for ‘‘Secretary’’. 2004—Subsec. (b). Pub. L. 108–271 substituted ‘‘Govern- ment Accountability Office’’ for ‘‘General Accounting Office’’ wherever appearing. 1992—Subsec. (b). Pub. L. 102–550, § 1382(o), designated existing provisions as par. (1), substituted ‘‘The pro- grams, activities, receipts, expenditures, and financial transactions of the Corporation shall be subject to audit by the Comptroller General of the United States under such rules and regulations as may be prescribed by the Comptroller General.’’ for ‘‘The financial trans- actions of the Corporation shall be subject to audit by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions under such rules and regula- tions as may be prescribed by the Comptroller General of the United States.’’, and added par. (2). Subsecs. (c) to (g). Pub. L. 102–550, § 1382(p)–(t), added subsecs. (c) to (g). 1989—Subsec. (a). Pub. L. 101–73 substituted ‘‘The Cor- poration is authorized to conduct its business without regard to any qualification or similar statute in any State.’’ for ‘‘The Corporation shall be entitled to all immunities and priorities, including without limita- tion on the generality of the foregoing all immunities and priorities under any such law or action, to which it would be entitled if it were the United States or if it were an unincorporated agency of the United States.’’ Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee 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 Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–73, title VII, § 731(j)(2), Aug. 9, 1989, 103 Stat. 435, provided that: ‘‘The amendment made by this subsection [amending this section] shall not apply to any assertion of priority by the Federal Home Loan Mortgage Corporation with respect to any cause of ac- tion or claim filed before the date of the enactment of this Act [Aug. 9, 1989].’’ TERMINATION OF ADVISORY COUNCILS Advisory councils established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a council established by the Presi- dent or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by Congress, its duration is other- wise provided by law. See sections 1001(2) and 1013 of Title 5, Government Organization and Employees. § 1457. Prohibited activities; penalties for viola- tions by organizations, officers and members of organizations, and individuals Except as expressly authorized by statute of the United States, no individual or organization (except the Corporation) shall use the term ‘‘Federal Home Loan Mortgage Corporation’’, or any combination of words including the words ‘‘Federal’’, and ‘‘Home Loan’’, and ‘‘Mortgage’’, as a name or part thereof under which any indi- vidual or organization does any business, but this sentence shall not make unlawful the use of any name under which business is being done on July 24, 1970. No individual or organization shall use or display (1) any sign, device, or insigne prescribed or approved by the Corporation for use or display by the Corporation or by members of the Federal home loan banks, (2) any copy, re- production, or colorable imitation of any such sign, device, or insigne, or (3) any sign, device, or insigne reasonably calculated to convey the impression that it is a sign, device, or insigne used by the Corporation or prescribed or ap- proved by the Corporation, contrary to regula- tions of the Corporation prohibiting, or limiting or restricting, such use or display by such indi- vidual or organization. An organization vio- lating this subsection shall for each violation be punished by a fine of not more than $10,000. An officer or member of an organization partici- pating or knowingly acquiescing in any viola- tion of this subsection shall be punished by a fine of not more than $5,000 or imprisonment for not more than one year, or both. An individual violating this subsection shall for each violation be punished as set forth in the sentence next preceding this sentence. (Pub. L. 91–351, title III, § 308, July 24, 1970, 84 Stat. 456; Pub. L. 98–479, title II, § 204(h), Oct. 17, 1984, 98 Stat. 2233; Pub. L. 101–73, title VII, § 731(k), Aug. 9, 1989, 103 Stat. 435.) Editorial Notes AMENDMENTS 1989—Pub. L. 101–73 struck out subsection (a) designa- tion before ‘‘Except as expressly’’, and struck out sub- secs. (b) to (f) relating to applicability of criminal pro- visions of title 18, and defining terms construing such applicability. 1984—Subsec. (f). Pub. L. 98–479 substituted ‘‘United States’’ for ‘‘United States Code’’ before ‘‘, except in a territorial sense’’. § 1458. Territorial applicability Notwithstanding any other law, this chapter shall be applicable to the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.