§ 4501. — Congressional findings.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4501]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
Sec. 4501. Congressional findings
The Congress finds that--
(1) the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation (referred to in this section
collectively as the ``enterprises''), and the Federal Home Loan
Banks (referred to in this section as the ``Banks''), have important
public missions that are reflected in the statutes and charter Acts
establishing the Banks and the enterprises;
(2) because the continued ability of the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation
to accomplish their public missions is important to providing
housing in the United States and the health of the Nation's economy,
more effective Federal regulation is needed to reduce the risk of
failure of the enterprises;
(3) considering the current operating procedures of the Federal
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, and the Federal Home Loan Banks, the enterprises and
the Banks currently pose low financial risk of insolvency;
(4) neither the enterprises nor the Banks, nor any securities or
obligations issued by the enterprises or the Banks, are backed by
the full faith and credit of the United States;
(5) an entity regulating the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation should
have sufficient autonomy from the enterprises and special interest
groups;
(6) an entity regulating such enterprises should have the
authority to establish capital standards, require financial
disclosure, prescribe adequate standards for books and records and
other internal controls, conduct examinations when necessary, and
enforce compliance with the standards and rules that it establishes;
(7) the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation have an affirmative obligation to
facilitate the financing of affordable housing for low- and
moderate-income families in a manner consistent with their overall
public purposes, while maintaining a strong financial condition and
a reasonable economic return; and
(8) the Federal Home Loan Bank Act [12 U.S.C. 1421 et seq.]
should be amended to emphasize that providing for financial safety
and soundness of the Federal Home Loan Banks is the primary mission
of the Federal Housing Finance Board.
(Pub. L. 102-550, title XIII, Sec. 1302, Oct. 28, 1992, 106 Stat. 3941.)
References in Text
The Federal Home Loan Bank Act, referred to in par. (8), is act July
22, 1932, ch. 522, 47 Stat. 725, as amended, which is classified
generally to chapter 11 (Sec. 1421 et seq.) of this title. For complete
classification of this Act to the Code, see section 1421 of this title
and Tables.
Short Title
Section 1301 of title XIII of Pub. L. 102-550 provided that: ``This
title [enacting this chapter, amending sections 1422a, 1430, 1430b, 1451
to 1456, 1716 to 1719, 1723, 1723a, and 1723c of this title, sections
3132 and 5313 of Title 5, Government Organization and Employees, section
1905 of Title 18, Crimes and Criminal Procedure, and section 3534 of
Title 42, The Public Health and Welfare, enacting provisions set out as
notes under sections 1451, 1452, 1723, and 4562 of this title, and
amending provisions set out as a note under section 1451 of this title]
may be cited as the `Federal Housing Enterprises Financial Safety and
Soundness Act of 1992'.''
