U.S Code last checked for updates: Nov 22, 2024
§ 4565.
Duty to serve underserved markets and other requirements
(a)
Duty to serve underserved markets
(1)
1
1
 So in original. No par. (2) has been enacted.
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
(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_2
2
 So in original.
(i)
the project-based and tenant-based rental assistance programs under section 1437f of title 42;
(ii)
(iii)
the below-market interest rate mortgage program under section 1715l(d)(4) of this title;
(iv)
the supportive housing for the elderly program under section 1701q of this title;
(v)
the supportive housing program for persons with disabilities under section 8013 of title 42;
(vi)
the programs under title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11360 et seq.], but only permanent supportive housing projects subsidized under such programs;
(vii)
the rural rental housing program under section 1485 of title 42;
(viii)
the low-income housing tax credit under section 42 of title 26; and
(ix)
comparable state 3
3
 So in original. Probably should be capitalized.
and local affordable housing programs.
(C)
Rural markets
(b)
In general
To meet the housing goals established under this subpart and to carry out the duty under subsection (a) of this section, 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 available in areas with concentrations of low-income and minority families, and
(B)
assist insured depository institutions to meet their obligations under the Community Reinvestment Act of 1977 [12 U.S.C. 2901 et seq.],
which shall include developing appropriate and prudent underwriting 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.
(c)
Additional categories
(d)
Evaluation and reporting of compliance
(1)
In general
(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_2
(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
(4)
Prohibition of consideration of affordable housing fund grants for meeting duty to serve
(Pub. L. 102–550, title XIII, § 1335, Oct. 28, 1992, 106 Stat. 3961; Pub. L. 105–65, title V, § 517(c), Oct. 27, 1997, 111 Stat. 1403; Pub. L. 110–289, div. A, title I, §§ 1128(c)(1), 1129(a), July 30, 2008, 122 Stat. 2701, 2703.)
cite as: 12 USC 4565