12 U.S.C. § 4562 — Single-family housing goals

Page 1668 TITLE 12—BANKS AND BANKING § 4561 1 So in original. 1454(d) of this title meets the requirements of clauses (i), (ii), and (iii) of section 1717(b)(7)(C) of this title and subparagraphs (A), (B), and (C) of section 1454(d) of this title, respectively. (Pub. L. 102–550, title XIII, § 1328, as added Pub. L. 115–174, title III, § 310(c), May 24, 2018, 132 Stat. 1355.) Editorial Notes PRIOR PROVISIONS A prior section 4548, Pub. L. 102–550, title XIII, § 1328, Oct. 28, 1992, 106 Stat. 3956; Pub. L. 110–289, div. A, title I, § 1122(a)(1), July 30, 2008, 122 Stat. 2689, related to re- quired annual reports, prior to repeal by Pub. L. 110–289, div. A , title I, § 1104(b), July 30, 2008, 122 Stat. 2667. SUBPART 2—HOUSING GOALS § 4561. Establishment of housing goals (a) In general The Director shall, by regulation, establish ef- fective for 2010 and each year thereafter, annual housing goals, with respect to the mortgage pur- chases by the enterprises, as follows: (1) Single-family housing goals Four single-family housing goals under sec- tion 4562 of this title. (2) Multifamily special affordable housing goal One multifamily special affordable housing goal under section 4563 of this title. (b) Timing The Director shall, by regulation, establish an annual deadline by which the Director shall es- tablish the annual housing goals under this sub- part for each year, taking into consideration the need for the enterprises to reasonably and suffi- ciently plan their operations and activities in advance, including operations and activities necessary to meet such annual goals. (c) Transition The annual housing goals effective for 2008 pursuant to this subpart, as in effect before July 30, 2008, shall remain in effect for 2009, except that not later than the expiration of the 270-day period beginning on July 30, 2008, the Director shall review such goals applicable for 2009 to de- termine the feasibility of such goals given the market conditions current at such time and, after seeking public comment for a period not to exceed 30 days, may make appropriate adjust- ments consistent with such market conditions. (d) Eliminating interest rate disparities (1) In general Upon request by the Director, an enterprise shall provide to the Director, in a form deter- mined by the Director, data the Director may review to determine whether there exist dis- parities in interest rates charged on mort- gages to borrowers who are minorities as com- pared with comparable mortgages to bor- rowers of similar creditworthiness who are not minorities. (2) Remedial actions upon preliminary finding Upon a preliminary finding by the Director that a pattern of disparities in interest rates with respect to any lender or lenders exists pursuant to the data provided by an enterprise in paragraph (1), the Director shalll1 (A) refer the preliminary finding to the ap- propriate regulatory or enforcement agency for further review; and (B) require the enterprise to submit addi- tional data with respect to any lender or lenders, as appropriate and to the extent practicable, to the Director who shall sub- mit any such additional data to the regu- latory or enforcement agency for appro- priate action. (3) Annual report to Congress The Director shall submit to the Committee on Financial Services of the House of Rep- resentatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a re- port describing the actions taken, and being taken, by the Director to carry out this sub- section. No such report shall identify any lender or lenders who have not been found to have engaged in discriminatory lending prac- tices pursuant to a final adjudication on the record, and after opportunity for an adminis- trative hearing, in accordance with subchapter II of chapter 5 of title 5. (4) Protection of identity of individuals In carrying out this subsection, the Director shall ensure that no property-related or finan- cial information that would enable a borrower to be identified shall be made public. (Pub. L. 102–550, title XIII, § 1331, as added Pub. L. 110–289, div. A, title I, § 1128(b), July 30, 2008, 122 Stat. 2696.) Editorial Notes PRIOR PROVISIONS A prior section 4561, Pub. L. 102–550, title XIII, § 1331, Oct. 28, 1992, 106 Stat. 3956, related to establishment of housing goals, prior to repeal by Pub. L. 110–289, div. A, title I, § 1128(a), July 30, 2008, 122 Stat. 2696. § 4562. 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 fol- lowing categories of families: (1) Purchase-money mortgages A goal for purchase of conventional, con- forming, single-family, purchase money mort- gages 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, con- forming 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. Page 1669 TITLE 12—BANKS AND BANKING § 4562 (b) Goals as a percentage of total mortgage pur- chases The goals established under paragraphs (1) and (2) of subsection (a) shall be established as a per- centage of the total number of conventional, conforming, single-family, owner-occupied, pur- chase money mortgages purchased by the enter- prise, or as percentage of the total number of conventional, single-family, owner-occupied re- finance 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 af- fordable to low-income families each year which are contained in mortgages purchased by the en- terprise financing 2- to 4-unit single-family, owner-occupied properties and may, by regula- tion, 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, whether each enterprise has complied with each such goal established under sub- section (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 sub- paragraph (A), (B), or (C) of subsection (a)(1) for a year only if, for the type of family de- scribed 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 sub- section (a)(2) for a year only if the percentage of the number of conventional, conforming, single-family, owner-occupied refinance mort- gages purchased by the enterprise in such year that serve low-income families meets or ex- ceeds the target for the year that is estab- lished 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 Direc- tor shall not consider segments of the market determined to be unacceptable or contrary to good lending practices, inconsistent with safe- ty and soundness, or unauthorized for pur- chase 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 et seq.] is publicly available— (i) of the number of conventional, con- forming, single-family, owner-occupied purchase money mortgages originated in such year that serve such type of family, or (ii) the number of conventional, con- forming, single-family, owner-occupied re- finance mortgages originated in such year that serve low-income families, as applicable, as determined by the Director using the information obtained and deter- mined pursuant to paragraphs (4) and (5). (B) Establishment of goal targets The Director shall, by regulation, estab- lish 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 de- velopments. (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 con- ventional mortgage market, or refinance conventional mortgage market, as applica- ble, serving each of the types of families described in subsection (a), relative to the size of the overall purchase money mort- gage market or the overall refinance mort- gage market, respectively. (vii) The need to maintain the sound fi- nancial 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 informa- tion submitted in compliance with the Home Mortgage Disclosure Act of 1975 [12 U.S.C. 2801 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 con- forming mortgage for purposes of this para- graph, the Director shall consider the original Page 1670 TITLE 12—BANKS AND BANKING § 4563 1 So in original. principal balance of the mortgage loan to be the principal balance as reported in the infor- mation referred to in paragraph (4), as rounded to the nearest thousand dollars. (f) Notice of determination and enterprise com- ment (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 en- terprise, which shall include an analysis and comparison, by the Director, of the perform- ance of the enterprise for the year and the tar- gets for the year under subsection (e). (2) Comment period The Director shall provide each enterprise an opportunity to comment on the determina- tion 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 enter- prise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 4566 of this title), the Direc- tor 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, not- withstanding the use of one or more units for rental purposes. (i) Goals credit The Director shall determine whether an en- terprise shall receive full, partial, or no credit for a transaction toward achievement of any of the housing goals established pursuant to sec- tion 4562 and 4563 of this title. In making any such determination, the Director shall consider whether a transaction or activity of an enter- prise 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 sec- tion may be given to the purchase of mortgages, including any transaction or activity of an en- terprise determined to be substantially equiva- lent to a mortgage purchase, that is determined to be unacceptable or contrary to good lending practices, inconsistent with safety and sound- ness, or unauthorized for purchase by the enter- prises, pursuant to regulations issued by the Di- rector. (Pub. L. 102–550, title XIII, § 1332, as added Pub. L. 110–289, div. A, title I, § 1128(b), July 30, 2008, 122 Stat. 2697.) Editorial Notes REFERENCES IN TEXT The Home Mortgage Disclosure Act of 1975, referred to in subsec. (e)(2)(A), (4), is title III of Pub. L. 94–200, Dec. 31, 1975, 89 Stat. 1125, which is classified prin- cipally to chapter 29 (§ 2801 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2801 of this title and Tables. PRIOR PROVISIONS A prior section 4562, Pub. L. 102–550, title XIII, § 1332, Oct. 28, 1992, 106 Stat. 3956, related to low- and mod- erate-income housing goal, prior to repeal by Pub. L. 110–289, div. A, title I, § 1128(a), July 30, 2008, 122 Stat. 2696. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 102–550, title XIII, § 1338, Oct. 28, 1992, 106 Stat. 3964, which provided the effective date for housing goals established under former sections 4562(d), 4563(d), and 4564(d) of this title, was repealed by Pub. L. 110–289, div. A, title I, § 1122(a)(2), July 30, 2008, 122 Stat. 2689. § 4563. Multifamily special affordable housing goal (a) Establishment of goal (1) In general The Director shall, by regulation, establish a single annual goal, by either unit or dollar volume, of purchases by each enterprise of mortgages on multifamily housing that fi- nance dwelling units affordable to low-income families. (2) Additional requirements for units afford- able to very low-income families When establishing the goal under this sec- tion, the Director shall establish additional requirements for the purchase by each enter- prise of mortgages on multifamily housing that finance dwelling units affordable to very low-income families. (3) Reporting on smaller properties The Director shall require each enterprise to report on the purchase by each enterprise of multifamily housing of a smaller or limited size that is affordable to low-income families, which may be based on multifamily projects of 5 to 50 units (as such numbers may be adjusted by the Director) or on mortgages of up to $5,000,000 (as such amount may be adjusted by the Director), and may, by regulation, estab- lish such aditional 1 requirements related to such units. (4) Factors In establishing the goal and additional re- quirements under this section, the Director shall not consider segments of the market de- termined to be inconsistent with safety and soundness or unauthorized for purchase by the enterprises, and shall take into consider- ation— (A) national multifamily mortgage credit needs and the ability of the enterprise to provide additional liquidity and stability for the multifamily mortgage market; (B) the performance and effort of the en- terprise in making mortgage credit available for multifamily housing in previous years; (C) the size of the multifamily mortgage market for housing affordable to low-income