The Director shall require each enterprise to obtain the approval of the Director for any product of the enterprise before initially offering the product.
In considering any request for approval of a product pursuant to subsection (a), the Director shall make a determination that—
(1) in the case of a product of the Federal National Mortgage Association, the product is authorized under paragraph (2), (3), (4), or (5) of section 1717(b) or
(2) in the case of a product of the Federal Home Loan Mortgage Corporation, the product is authorized under paragraph (1), (4), or (5) of
(3) the product is in the public interest; and
(4) the product is consistent with the safety and soundness of the enterprise or the mortgage finance system.
An enterprise shall submit to the Director a written request for approval of a product that describes the product in such form as prescribed by order or regulation of the Director.
Immediately upon receipt of a request for approval of a product, as required under paragraph (1), the Director shall publish notice of such request and of the period for public comment pursuant to paragraph (3) regarding the product, and a description of the product proposed by the request. The Director shall give interested parties the opportunity to respond in writing to the proposed product.
During the 30-day period beginning on the date of publication pursuant to paragraph (2) of a request for approval of a product, the Director shall receive public comments regarding the proposed product.
Not later than 30 days after the close of the public comment period described in paragraph (3), the Director shall approve or deny the product, specifying the grounds for such decision in writing.
If the Director fails to act within the 30-day period described in subparagraph (A), then the enterprise may offer the product.
The Director may, subject to the rules of the Director, provide for temporary approval of the offering of a product without a public comment period, if the Director finds that the existence of exigent circumstances makes such delay contrary to the public interest.
If the Director approves the offering of any product by an enterprise, the Director may establish terms, conditions, or limitations with respect to such product with which the enterprise must comply in order to offer such product.
The requirements of subsections (a) through (d) do not apply with respect to—
(A) the automated loan underwriting system of an enterprise in existence as of July 30, 2008, including any upgrade to the technology, operating system, or software to operate the underwriting system;
(B) any modification to the mortgage terms and conditions or mortgage underwriting criteria relating to the mortgages that are purchased or guaranteed by an enterprise, provided that such modifications do not alter the underlying transaction so as to include services or financing, other than residential mortgage financing; or
(C) any other activity that is substantially similar, as determined by rule of the Director to—
(i) the activities described in subparagraphs (A) and (B); and
(ii) other activities that have been approved by the Director in accordance with this section.
For any new activity that an enterprise considers not to be a product, the enterprise shall provide written notice to the Director of such activity, and may not commence such activity until the date of receipt of a notice under subparagraph (B) or the expiration of the period described in subparagraph (C). The Director shall establish, by regulation, the form and content of such written notice.
Not later than 15 days after the date of receipt of a notice under subparagraph (A), the Director shall determine whether such activity is a product subject to approval under this section. The Director shall, immediately upon so determining, notify the enterprise.
If the Director fails to determine whether such activity is a product within the 15-day period described in subparagraph (B), the enterprise may commence the new activity in accordance with subparagraph (A).
Nothing in this section may be construed to restrict—
(1) the safety and soundness authority of the Director over all new and existing products or activities; or
(2) the authority of the Director to review all new and existing products or activities to determine that such products or activities are consistent with the statutory mission of an enterprise.
(
A prior section 4541,
The Director shall establish and maintain a method of assessing the national average 1-family house price for use for adjusting the conforming loan limitations of the enterprises. In establishing such method, the Director shall take into consideration the monthly survey of all major lenders conducted by the Federal Housing Finance Agency to determine the national average 1-family house price, the House Price Index maintained by the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development before the effective date of the Federal Housing Finance Regulatory Reform Act of 2008, any appropriate house price indexes of the Bureau of the Census of the Department of Commerce, and any other indexes or measures that the Director considers appropriate.
(
The effective date of the Federal Housing Finance Regulatory Reform Act of 2008, referred to in text, probably means the date of enactment of div. A of
A prior section 4542,
The Director shall make available to the public, in forms useful to the public (including forms accessible by computers), the data submitted by the enterprises in the reports required under
Such data shall include the data elements required to be reported under the Home Mortgage Disclosure Act of 1975 [
Except as provided in paragraph (2), the Director may not make available to the public data that the Director determines pursuant to
The Director shall not restrict access to the data provided in accordance with
The Director may charge reasonable fees to cover the cost of making data available under this section to the public.
Data submitted under this section by an enterprise in connection with a provision referred to in subsection (a) shall be made publicly available in accordance with this section not later than September 30 of the year following the year to which the data relates.
(
The Home Mortgage Disclosure Act of 1975, referred to in subsec. (a)(2), is title III of
2008—
Subsec. (a).
Subsec. (b)(2).
Subsec. (d).
After reviewing and analyzing the reports submitted under
The report required under subsection (a) shall—
(1) discuss—
(A) the extent to and manner in which—
(i) each enterprise is achieving the annual housing goals established under subpart 2;
(ii) each enterprise is complying with its duty to serve underserved markets, as established under
(iii) each enterprise is complying with
(iv) each enterprise received credit towards achieving each of its goals resulting from a transaction or activity pursuant to
(v) each enterprise is achieving the purposes of the enterprise established by law; and
(B) the actions that each enterprise could undertake to promote and expand the purposes of the enterprise;
(2) aggregate and analyze relevant data on income to assess the compliance of each enterprise with the housing goals established under subpart 2;
(3) aggregate and analyze data on income, race, and gender by census tract and other relevant classifications, and compare such data with larger demographic, housing, and economic trends;
(4) identify the extent to which each enterprise is involved in mortgage purchases and secondary market activities involving subprime and nontraditional loans;
(5) compare the characteristics of subprime and nontraditional loans both purchased and securitized by each enterprise to other loans purchased and securitized by each enterprise; and
(6) compare the characteristics of high-cost loans purchased and securitized, where such securities are not held on portfolio to loans purchased and securitized, where such securities are either retained on portfolio or repurchased by the enterprise, including such characteristics as—
(A) the purchase price of the property that secures the mortgage;
(B) the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;
(C) the terms of the mortgage;
(D) the creditworthiness of the borrower; and
(E) any other relevant data, as determined by the Director.
To assist the Director in analyzing the matters described in subsection (b), the Director shall conduct, on a monthly basis, a survey of mortgage markets in accordance with this subsection.
Each monthly survey conducted by the Director under paragraph (1) shall collect data on—
(A) the characteristics of individual mortgages that are eligible for purchase by the enterprises and the characteristics of individual mortgages that are not eligible for purchase by the enterprises including, in both cases, information concerning—
(i) the price of the house that secures the mortgage;
(ii) the loan-to-value ratio of the mortgage, which shall reflect any secondary liens on the relevant property;
(iii) the terms of the mortgage;
(iv) the creditworthiness of the borrower or borrowers; and
(v) whether the mortgage, in the case of a conforming mortgage, was purchased by an enterprise;
(B) the characteristics of individual subprime and nontraditional mortgages that are eligible for purchase by the enterprises and the characteristics of borrowers under such mortgages, including the creditworthiness of such borrowers and determination whether such borrowers would qualify for prime lending; and
(C) such other matters as the Director determines to be appropriate.
The Director shall make any data collected by the Director in connection with the conduct of a monthly survey available to the public in a timely manner, provided that the Director may modify the data released to the public to ensure that the data—
(A) is not released in an identifiable form; and
(B) is not otherwise obtainable from other publicly available data sets.
For purposes of this subsection, the term "identifiable form" means any representation of information that permits the identity of a borrower to which the information relates to be reasonably inferred by either direct or indirect means.
(
A prior section 4544,
The Secretary of Housing and Urban Development shall—
(1) by regulation, prohibit each enterprise from discriminating in any manner in the purchase of any mortgage because of race, color, religion, sex, handicap, familial status, age, or national origin, including any consideration of the age or location of the dwelling or the age of the neighborhood or census tract where the dwelling is located in a manner that has a discriminatory effect;
(2) by regulation, require each enterprise to submit data to the Secretary to assist the Secretary in investigating whether a mortgage lender with which the enterprise does business has failed to comply with the Fair Housing Act [
(3) by regulation, require each enterprise to submit data to the Secretary to assist in investigating whether a mortgage lender with which the enterprise does business has failed to comply with the Equal Credit Opportunity Act [
(4) obtain information from other regulatory and enforcement agencies of the Federal Government and State and local governments regarding violations by lenders of the Fair Housing Act and the Equal Credit Opportunity Act and make such information available to the enterprises;
(5) direct the enterprises to undertake various remedial actions, including suspension, probation, reprimand, or settlement, against lenders that have been found to have engaged in discriminatory lending practices in violation of the Fair Housing Act or the Equal Credit Opportunity Act, pursuant to a final adjudication on the record, and after opportunity for an administrative hearing, in accordance with subchapter II of
(6) periodically review and comment on the underwriting and appraisal guidelines of each enterprise to ensure that such guidelines are consistent with the Fair Housing Act and this section.
(
The Fair Housing Act, referred to in pars. (2) and (4) to (6), is title VIII of
The Equal Credit Opportunity Act, referred to in pars. (3) to (5), is title VII of
2008—
Subject to subsection (d), the Director may, by regulation or order, provide that certain information shall be treated as proprietary information and not subject to disclosure under
The Director shall not provide public access to, or disclose to the public, any information required to be submitted by an enterprise under
This section may not be construed to authorize the disclosure of information to, or examination of data by, the public or a representative of any person or agency pending the issuance of a final decision under this section.
Subject to privacy considerations, as described in section 304(j) of the Home Mortgage Disclosure Act of 1975 (
(1) the same data from the enterprises that is required of insured depository institutions under the Home Mortgage Disclosure Act of 1975 [
(2) information collected by the Director under
(
The Home Mortgage Disclosure Act of 1975, referred to in subsec. (d)(1), is title III of
2008—
Subsec. (a).
Subsec. (d).
For purposes of this section, the following definitions shall apply:
The term "guarantee fee"—
(A) means a fee described in subsection (b); and
(B) includes—
(i) the guaranty fee charged by the Federal National Mortgage Association with respect to mortgage-backed securities; and
(ii) the management and guarantee fee charged by the Federal Home Loan Mortgage Corporation with respect to participation certificates.
The term "average fees" means the average contractual fee rate of single-family guaranty arrangements by an enterprise entered into during 2011, plus the recognition of any up-front cash payments over an estimated average life, expressed in terms of basis points. Such definition shall be interpreted in a manner consistent with the annual report on guarantee fees by the Federal Housing Finance Agency.
Subject to subsection (c), the Director shall require each enterprise to charge a guarantee fee in connection with any guarantee of the timely payment of principal and interest on securities, notes, and other obligations based on or backed by mortgages on residential real properties designed principally for occupancy of from 1 to 4 families, consummated after December 23, 2011.
The amount of the increase required under this section shall be determined by the Director to appropriately reflect the risk of loss, as well 1 the cost of capital allocated to similar assets held by other fully private regulated financial institutions, but such amount shall be not less than an average increase of 10 basis points for each origination year or book year above the average fees imposed in 2011 for such guarantees. The Director shall prohibit an enterprise from offsetting the cost of the fee to mortgage originators, borrowers, and investors by decreasing other charges, fees, or premiums, or in any other manner.
The Director shall prohibit an enterprise from consummating any offer for a guarantee to a lender for mortgage-backed securities, if—
(A) the guarantee is inconsistent with the requirements of this section; or
(B) the risk of loss is allowed to increase, through lowering of the underwriting standards or other means, for the primary purpose of meeting the requirements of this section.
Amounts received from fee increases imposed under this section shall be deposited directly into the United States Treasury, and shall be available only to the extent provided in subsequent appropriations Acts. The fees charged pursuant to this section shall not be considered a reimbursement to the Federal Government for the costs or subsidy provided to an enterprise.
The Director may provide for compliance with subsection (b) by allowing each enterprise to increase the guarantee fee charged by the enterprise gradually over the 2-year period beginning on December 23, 2011, in a manner sufficient to comply with this section. In determining a schedule for such increases, the Director shall—
(A) provide for uniform pricing among lenders;
(B) provide for adjustments in pricing based on risk levels; and
(C) take into consideration conditions in financial markets.
Nothing in this subsection shall be interpreted to undermine the minimum increase required by subsection (b).
The Director shall require each enterprise to provide to the Director, as part of its annual report submitted to Congress—
(1) a description of—
(A) changes made to up-front fees and annual fees as part of the guarantee fees negotiated with lenders;
(B) changes to the riskiness of the new borrowers compared to previous origination years or book years; and
(C) any adjustments required to improve for future origination years or book years, in order to be in complete compliance with subsection (b); and
(2) an assessment of how the changes in the guarantee fees described in paragraph (1) met the requirements of subsection (b).
Based on the information from subsection (d) and any other information the Director deems necessary, the Director shall require an enterprise to make adjustments in its guarantee fee in order to be in compliance with subsection (b).
An enterprise that has been found to be out of compliance with subsection (b) for any 2 consecutive years shall be precluded from providing any guarantee for a period, determined by rule of the Director, but in no case less than 1 year.
Nothing in this subsection shall be interpreted as preventing the Director from initiating and implementing an enforcement action against an enterprise, at a time the Director deems necessary, under other existing enforcement authority.
The provisions of this section shall expire on October 1, 2021.
(
A prior section 4547,
1 So in original. Probably should be followed by "as".
The Director shall—
(1) by regulation, establish standards and criteria for any process used by an enterprise to validate and approve credit scoring models pursuant to
(2) ensure that any credit scoring model that is validated and approved by an enterprise under
(
A prior section 4548,