Collapse to view only § 4603. Transition
- § 4601. Review of underwriting guidelines
- § 4602. Studies of effects of privatization of FNMA and FHLMC
- § 4603. Transition
§ 4601. Review of underwriting guidelines
(a) StudyEach of the enterprises shall conduct a study to review the underwriting guidelines of the enterprise. The studies shall examine—
(1) the extent to which the underwriting guidelines prevent or inhibit the purchase or securitization of mortgages for housing located in mixed-use, urban center, and predominantly minority neighborhoods and for housing for low- and moderate-income families;
(2) the standards employed by private mortgage insurers and the extent to which such standards inhibit the purchase and securitization by the enterprises of mortgages described in paragraph (1); and
(3) the implications of implementing underwriting standards that—
(A) establish a downpayment requirement for mortgagors of 5 percent or less;
(B) allow the use of cash on hand as a source for downpayments; and
(C) approve borrowers who have a credit history of delinquencies if the borrower can demonstrate a satisfactory credit history for at least the 12-month period ending on the date of the application for the mortgage.
(b) Report
(Pub. L. 102–550, title XIII, § 1354, Oct. 28, 1992, 106 Stat. 3970.)
§ 4602. Studies of effects of privatization of FNMA and FHLMC
(a) In general
(b) Requirements
Each study shall particularly examine the effects of such privatization on—
(1) the requirements applicable to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation under Federal law and the costs to the enterprises;
(2) the cost of capital to the enterprises;
(3) housing affordability and availability and the cost of homeownership;
(4) the level of secondary mortgage market competition subsequently available in the private sector;
(5) whether increased amounts of capital would be necessary for the enterprises to continue operation;
(6) the secondary market for residential loans and the liquidity of such loans; and
(7) any other factors that the Comptroller General, the Secretary of Housing and Urban Development, the Secretary of the Treasury, or the Director of the Congressional Budget Office deems appropriate to enable the Congress to evaluate the desirability and feasibility of privatization of the enterprises.
(c) Information
(d) Views of FNMA and FHLMC
(1) Consideration in studies
(2) Direct report
(Pub. L. 102–550, title XIII, § 1355, Oct. 28, 1992, 106 Stat. 3970.)
§ 4603. Transition
Before the expiration of the period ending 18 months after the appointment of the Director under section 4512 of this title, any rules and regulations promulgated before October 28, 1992, by the Secretary pursuant to the Federal National Mortgage Association Charter Act [12 U.S.C. 1716 et seq.] or the Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1451 et seq.] shall remain in effect unless modified, terminated, superseded, or revoked by operation of law or in accordance with law. Such rules and regulations shall terminate, effective upon the expiration of such period.
(Pub. L. 102–550, title XIII, § 1356, Oct. 28, 1992, 106 Stat. 3971.)