§ 4565. Duty to serve underserved markets and other requirements

Footnotes

1. 1 So in original. No par. (2) has been enacted.
2. 2 So in original.
3. 3 So in original. Probably should be capitalized.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1992

   Federal Housing Enterprises Financial Safety and Soundness Act of 1992

   Pub. L. 102–550 title XIII § 1335 · 106 Stat. 3672

   Enacted · 12 U.S.C. § 4565

   Pub. L. 102–550, title XIII, § 1335, Oct. 28, 1992, 106 Stat. 3961

   Source evidence

   Code source credit
   Pub. L. 102–550, title XIII, § 1335, Oct. 28, 1992, 106 Stat. 3961

   Enacted provision · exact public law section
   SEC. 1335. OTHER REQUIREMENTS. To meet the low- and moderate-income housing goal under section 1332, the special affordable housing goal under section 1333, and the central cities, rural areas, and other under-served areas housing goal under section 1334, each enterprise shall— (1) design programs and products that facilitate the use of assistance provided by the Federal Government and State and local governments; (2) develop relationships with nonprofit and for-profit organizations that develop and finance housing and with State and local governments, including housing finance agencies; (3) take affirmative steps to— (A) assist primary lenders to make housing credit avail-able in areas with concentrations of low-income and minority families, and (B) assist insured depository institutions to meet then- obligations under the Community Reinvestment Act of 1977, which shall include developing appropriate and prudent under-writing standards, business practices, repurchase requirements, pricing, fees, and procedures; and (4) develop the institutional capacity to help finance low- and moderate-income housing, including housing for first-time homebuyers.

2. 1997

   Pub. L. 105–65 § 517(c)(3) · 111 Stat. 1344

   1. Amended · 12 U.S.C. § 4565(a)

      Pub. L. 105–65, § 517(c)(3), designated existing provisions as subsec. (a)

   2. Inserted · 12 U.S.C. § 4565(a)

      Pub. L. 105–65, § 517(c)(3), inserted heading

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 105–65, § 517(c)(3), designated existing provisions as subsec. (a) and inserted heading.

   Enacted provision · exact public law section
   (3) by striking “To meet” and inserting the following: “(a) In General.— To meet”; and

3. 1997

   Pub. L. 105–65 § 517(c)(1) · 111 Stat. 1344

   Added · 12 U.S.C. § 4565(a)(5)

   Pub. L. 105–65, § 517(c)(1), (2), (4), added par. (5)

   Source evidence

   Code amendment note
   Subsec. (a)(5). Pub. L. 105–65, § 517(c)(1), (2), (4), added par. (5).

   Enacted provision · exact public law section
   (1) in paragraph (3), by striking “and” at the end;

4. 1997

   Pub. L. 105–65 § 517(c)(4) · 111 Stat. 1344

   Added · 12 U.S.C. § 4565(b)

   Pub. L. 105–65, § 517(c)(4), added subsec. (b)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 105–65, § 517(c)(4), added subsec. (b).

   Enacted provision · exact public law section
   (4) by adding at the end the following: “(5) assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997. “(b) Affordable Housing Goals.— Actions taken under subsection (a)(5) shall constitute part of the contribution of each entity in meeting its affordable housing goals under sections 1332, 1333, and 1334 for any fiscal year, as determined by the Secretary.”.

5. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1129(a)(1) · 122 Stat. 2654

   Inserted · 12 U.S.C. § 4565

   Pub. L. 110–289, § 1129(a)(1), inserted “Duty to serve underserved markets and” before “other” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1129(a)(1), inserted “Duty to serve underserved markets and” before “other” in section catchline.

   Enacted provision · exact public law section
   (1) in the section heading, by inserting “duty to serve underserved markets and” before “other”;

6. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1129(a)(4) · 122 Stat. 2654

   Redesignated · 12 U.S.C. § 4565(a)

   Pub. L. 110–289, § 1129(a)(4), added subsec. (a). Former subsec. (a) redesignated (b)

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 110–289, § 1129(a)(4), added subsec. (a). Former subsec. (a) redesignated (b).

   Enacted provision · exact public law section
   (4) by inserting before subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the following new subsection: “(a) Duty to Serve Underserved Markets.— “(1) Duty.— To increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets, each enterprise shall provide leadership to the market in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages for very low-, low-, and moderate-income families with respect to the following underserved markets: “(A) Manufactured housing.— The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families. “(B) Affordable housing preservation.— The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized under_ “(i) the project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937; “(ii) the program under section 236 of the National Housing Act; “(iii) the below-market interest rate mortgage program under section 221(d)(4) of the National Housing Act; “(iv) the supportive housing for the elderly program under section 202 of the Housing Act of 1959; “(v) the supportive housing program for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act; “(vi) the programs under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.), but only permanent supportive housing projects subsidized under such programs; “(vii) the rural rental housing program under section 515 of the Housing Act of 1949; “(viii) the low-income housing tax credit under section 42 of the Internal Revenue Code of 1986; and “(ix) comparable state and local affordable housing programs. “(C) Rural markets.— The Guidelines. enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, and low-, and moderate-income families in rural areas.” ; and

7. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1129(a)(3)(A) · 122 Stat. 2654

   1. Inserted · 12 U.S.C. § 4565(a)

      Pub. L. 110–289, § 1129(a)(3)(A)–(D), inserted “and to carry out the duty under subsection (a) of this section” before “, each enterprise shall” in introductory provisions

   2. Struck · 12 U.S.C. § 4565(a)

      Pub. L. 110–289, § 1129(a)(3)(A)–(D), struck out par. (5) which read as follows: “assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997.”

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1129(a)(3)(A)–(D), inserted “and to carry out the duty under subsection (a) of this section” before “, each enterprise shall” in introductory provisions and struck out par. (5) which read as follows: “assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997.”

   Enacted provision · exact public law section
   (A) in the matter preceding paragraph (1), by inserting “and to carry out the duty under subsection (a) of this section” before “, each enterprise shall”;

8. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1128(c)(1) · 122 Stat. 2654

   Substituted · 12 U.S.C. § 4565(a)

   Pub. L. 110–289, § 1128(c)(1), substituted “housing goals established under this subpart” for “low- and moderate-income housing goal under section 4562 of this title, the special affordable housing goal under section 4563 of this title, and the central cities, rural areas, and other underserved areas housing goal under section 4564 of this title” in introductory provisions

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 110–289, § 1128(c)(1), substituted “housing goals established under this subpart” for “low- and moderate-income housing goal under section 4562 of this title, the special affordable housing goal under section 4563 of this title, and the central cities, rural areas, and other underserved areas housing goal under section 4564 of this title” in introductory provisions.

   Enacted provision · exact public law section
   (1) in section 1335(a) (12 U.S.C. 4565(a)), in the matter preceding paragraph (1), by striking “low- and moderate-income housing goal” and all that follows through “section 1334” and inserting “housing goals established under this subpart”; and

9. 2008

   Federal Housing Finance Regulatory Reform Act of 2008

   Pub. L. 110–289 § 1129(a)(3)(E) · 122 Stat. 2654

   Redesignated · 12 U.S.C. § 4565(b)

   Pub. L. 110–289, § 1129(a)(3)(E), redesignated subsec. (a) as (b)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 110–289, § 1129(a)(3)(E), redesignated subsec. (a) as (b).

   Enacted provision · exact public law section
   (E) by redesignating such subsection as subsection (b);

10. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1129(a)(2) · 122 Stat. 2654

    Struck · 12 U.S.C. § 4565(b)

    Pub. L. 110–289, § 1129(a)(2), struck out subsec. (b). Text read as follows: “Actions taken under subsection (a)(5) of this section shall constitute part of the contribution of each entity in meeting its affordable housing goals under sections 4562, 4563, and 4564 of this title for any fiscal year, as determined by the Secretary.”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 110–289, § 1129(a)(2), struck out subsec. (b). Text read as follows: “Actions taken under subsection (a)(5) of this section shall constitute part of the contribution of each entity in meeting its affordable housing goals under sections 4562, 4563, and 4564 of this title for any fiscal year, as determined by the Secretary.”

    Enacted provision · exact public law section
    (2) by striking subsection (b);

11. 2008

    Federal Housing Finance Regulatory Reform Act of 2008

    Pub. L. 110–289 § 1129(a)(5) · 122 Stat. 2654

    Added · 12 U.S.C. § 4565(c); 12 U.S.C. § 4565(d)

    Pub. L. 110–289, § 1129(a)(5), added subsecs. (c) and (d)

    Source evidence

    Code amendment note
    Subsecs. (c), (d). Pub. L. 110–289, § 1129(a)(5), added subsecs. (c) and (d).

    Enacted provision · exact public law section
    (5) by adding at the end the following new subsections: “(c) Additional Categories.— The Director may submit recommendations to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate for the establishment of additional categories under subsection (a), provided that the Director makes a preliminary determination that any such category is important to the mission of the enterprises, that the category is an underserved market, and that the establishment of such category is warranted. “(d) Evaluation and Reporting of Compliance.— “(1) In general.— The Regulations. Director shall, by regulation, establish effective for 2010 and thereafter a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for 2010 and each year thereafter, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section 1319B(a). “(2) Separate evaluations.— In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into consideration_ “(A) the development of loan products, more flexible underwriting guidelines, and other innovative approaches to providing financing to each of such underserved markets; “(B) the extent of outreach to qualified loan sellers and other market participants in each of such underserved markets; “(C) the volume of loans purchased in each of such underserved markets relative to the market opportunities available to the enterprise, except that the Director shall not establish specific quantitative targets nor evaluate the enterprises based solely on the volume of loans purchased; and “(D) the amount of investments and grants in projects which assist in meeting the needs of such underserved markets. “(3) Manufactured housing market.— In determining whether an enterprise has complied with the duty under subparagraph (A) of subsection (a)(1), the Director may consider loans secured by both real and personal property. “(4) Prohibition of consideration of affordable housing fund grants for meeting duty to serve.— In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director may not consider any affordable housing fund grant amounts used under section 1337 for eligible activities under subsection (g) of such section.” .

13 of 13 references resolved to an enrolled provision