12 USC 4541 - Prior approval authority for products

U.S Code last checked for updates: Nov 22, 2024

§ 4541.

Prior approval authority for products

(a)

In general

(b)

Standard for approval

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 section 1719 of this title;

(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 section 1454(a) of this title;

(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.

(c)

Procedure for approval

(1)

Submission of request

(2)

Request for public comment

(3)

Public comment period

(4)

Offering of product

(A)

In general

(B)

Failure to act

(C)

Temporary approval

(d)

Conditional approval

(e)

Exclusions

(1)

In general

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.

(2)

Expedited review

(A)

Enterprise notice

(B)

Director determination

(C)

Failure to act

(f)

No limitation

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.

(Pub. L. 102–550, title XIII, § 1321, as added Pub. L. 110–289, div. A, title I, § 1123, July 30, 2008, 122 Stat. 2689.)

cite as: 12 USC 4541