§ 1451. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1451]
TITLE 12--BANKS AND BANKING
CHAPTER 11A--FEDERAL HOME LOAN MORTGAGE CORPORATION
Sec. 1451. Definitions
As used in this chapter--
(a) The term ``Board of Directors'' means the Board of Directors of
the Corporation.
(b) The term ``Corporation'' means the Federal Home Loan Mortgage
Corporation created by this chapter.
(c) The term ``law'' includes any law of the United States or of any
State (including any rule of law or of equity).
(d) The term ``mortgage'' includes such classes of liens as are
commonly given or are legally effective to secure advances on, or the
unpaid purchase price of, real estate under the laws of the State in
which the real estate is located or a manufactured home that is personal
property under the laws of the State in which the manufactured home is
located together with the credit instruments, if any, secured thereby,
and includes interests in mortgages.
(e) The term ``organization'' means any corporation, partnership,
association, business trust, or business entity.
(f) The term ``prescribe'' means to prescribe by regulations or
otherwise.
(g) The term ``property'' includes any property, whether real,
personal, mixed, or otherwise, including without limitation on the
generality of the foregoing choses in action and mortgages, and includes
any interest in any of the foregoing.
(h) The term ``residential mortgage'' means a mortgage which (1) is
a mortgage on real estate, in fee simple or under a leasehold having
such term as may be prescribed by the Corporation, upon which there is
located a structure or structures designed in whole or in part for
residential use, or which comprises or includes one or more condominium
units or dwelling units (as defined by the Corporation) and (2) has such
characteristics and meets such requirements as to amount, term,
repayment provisions, number of families, status as a lien on such real
estate, and otherwise, as may be prescribed by the Corporation. The term
``residential mortgage'' also includes a loan or advance of credit
insured under title I of the National Housing Act [12 U.S.C. 1702 et
seq.] whose original proceeds are applied for in order to finance energy
conserving improvements, or the addition of a solar energy system, to
residential real estate. The term ``residential mortgage'' also includes
a loan or advance of credit for such purposes, or purchased from any
public utility carrying out activities in accordance with the
requirements of title II of the National Energy Conservation Policy Act
[42 U.S.C. 8211 et seq.] if the residential mortgage to be purchased is
a loan or advance of credit the original proceeds of which are applied
for in order to finance the purchase and installation of residential
energy conservation measures (as defined in section 210(11) \1\ of the
National Energy Conservation Policy Act) in residential real estate, not
having the benefit of such insurance and includes loans made where the
lender relies for purposes of repayment primarily on the borrower's
general credit standing and forecast of income, with or without other
security. The term ``residential mortgage'' is also deemed to include a
secured loan or advance of credit the proceeds of which are intended to
finance the rehabilitation, renovation, modernization, refurbishment, or
improvement of properties as to which the Corporation may purchase a
``residential mortgage'' as defined under the first sentence of this
subsection. Such term shall also include other secured loans that are
secured by a subordinate lien against a property as to which the
Corporation may purchase a residential mortgage as defined under the
first sentence of this subsection. A ``secured loan or advance of
credit'' is one in which a security interest is taken in the
rehabilitated, renovated, modernized, refurbished, or improved property.
Such term shall also include a mortgage, lien, or other security
interest on the stock or membership certificate issued to a tenant-
stockholder or resident-member by a cooperative housing corporation, as
defined in section 216 of title 26, and on the proprietary lease,
occupancy agreement, or right of tenancy in the dwelling unit of the
tenant-stockholder or resident-member in such cooperative housing
corporation. The term ``residential mortgage'' also includes a loan or
advance of credit secured by a mortgage or other lien on a manufactured
home that is the principal residence of the borrower, without regard to
whether the security property is real, personal, or mixed.
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\1\ See References in Text note below.
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(i) The term ``conventional mortgage'' means a mortgage other than a
mortgage as to which the Corporation has the benefit of any guaranty,
insurance or other obligation by the United States or any of its
agencies or instrumentalities.
(j) The term ``security'' has the meaning ascribed to it by section
77b of title 15.
(k) The term ``State'', whether used as a noun or otherwise,
includes the several States, the District of Columbia, the Commonwealth
of Puerto Rico, and the territories and possessions of the United
States.
(l) The term ``mortgage insurance program'' includes, in the case of
a residential mortgage secured by a manufactured home, any manufactured
home lending program under title I of the National Housing Act [12
U.S.C. 1702 et seq.].
(Pub. L. 91-351, title III, Sec. 302, July 24, 1970, 84 Stat. 451; Pub.
L. 95-619, title II, Sec. 245, Nov. 9, 1978, 92 Stat. 3233; Pub. L. 95-
630, title XVII, Sec. 1702, Nov. 10, 1978, 92 Stat. 3718; Pub. L. 96-
153, title III, Sec. 316(c), Dec. 21, 1979, 93 Stat. 1118; Pub. L. 96-
294, title V, Sec. 534(a)(2), June 30, 1980, 94 Stat. 741; Pub. L. 98-
440, title II, Secs. 202, 203(b)(1), 204, Oct. 3, 1984, 98 Stat. 1693-
1695; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L.
102-550, title XIII, Sec. 1382(b), Oct. 28, 1992, 106 Stat. 4002.)
References in Text
The National Housing Act, referred to in subsecs. (h) and (l), is
act June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title I of the
National Housing Act is classified generally to subchapter I (Sec. 1702
et seq.) of chapter 13 of this title. For complete classification of
this Act to the Code, see section 1701 of this title and Tables.
The National Energy Conservation Policy Act, referred to in subsec.
(h), is Pub. L. 95-619, Nov. 9, 1978, 92 Stat. 3208, as amended. Title
II of the Act is classified principally to subchapter II (Sec. 8211 et
seq.) of chapter 91 of Title 42, The Public Health and Welfare. Section
210 of the Act (42 U.S.C. 8211) was omitted from the Code pursuant to
section 8229 of Title 42 which terminated authority under that section
June 30, 1989. For complete classification of this Act to the Code, see
Short Title note set out under section 8201 of Title 42 and Tables.
Amendments
1992--Subsec. (h). Pub. L. 102-550 substituted ``purchased from any
public utility carrying out activities in accordance with the
requirements of title II of the National Energy Conservation Policy Act
if the residential mortgage to be purchased is a loan or advance of
credit the original proceeds of which are applied for in order to
finance the purchase and installation of residential energy conservation
measures (as defined in section 210(11) of the National Energy
Conservation Policy Act) in residential real estate'' for ``made by a
public utility and purchased by the Corporation pursuant to the first
sentence of section 1454(a)(1) of this title''.
1986--Subsec. (h). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes
of codification was translated as ``title 26'' thus requiring no change
in text.
1984--Subsec. (d). Pub. L. 98-440, Sec. 202(a), inserted reference
to a manufactured home that is personal property under the laws of the
State in which the manufactured home is located.
Subsec. (h). Pub. L. 98-440, Sec. 203(b)(1), substituted ``status as
a lien'' for ``status as a first lien'' and ``Such term shall also
include other secured loans that are secured by a subordinate lien
against a property as to which the Corporation may purchase a
residential mortgage as defined under the first sentence of this
subsection'' for ``The maximum principal obligation of loans purchased
by virtue of the preceding sentence shall not exceed the dollar limits
prescribed by the Federal Home Loan Bank Board with respect to similar
types of loans made by Federal savings and loan associations''.
Pub. L. 98-440, Sec. 202(b), inserted provision that term
``residential mortgage'' also includes a loan or advance of credit
secured by a mortgage or other lien on a manufactured home that is the
principal residence of the borrower, without regard to whether the
security property is real, personal, or mixed.
Subsec. (i). Pub. L. 98-440, Sec. 204, substituted ``any of its
agencies or instrumentalities'' for ``a State or an agency or
instrumentality of either''.
Subsec. (l). Pub. L. 98-440, Sec. 202(c), added subsec. (l).
1980--Subsec. (h). Pub. L. 96-294 inserted provision relating to
loans or advances of credit made by a public utility and purchased by
the Corporation pursuant to section 1454(a)(1) of this title.
1979--Subsec. (h). Pub. L. 96-153 expanded definition of residential
mortgage to include a mortgage, lien, or other security interest on the
stock or membership certificate issued to a tenant-stockholder or
resident-member by a cooperative housing corporation, and on the
proprietary lease, occupancy agreement, or right of tenancy in the
dwelling unit of the tenant-stockholder or resident-member in such
cooperative housing corporation.
1978--Subsec. (h). Pub. L. 95-630 inserted provisions expanding
definition of ``residential mortgage'' to include a secured loan or
advance of credit the proceeds of which are intended to finance the
rehabilitation, renovation, modernization, refurbishment, or improvement
of properties as to which the Corporation may purchase a ``residential
mortgage'' as defined under first sentence of this subsection,
provisions relating to the maximum principal obligation of loans, and
provisions defining ``secured loan or advance of credit''.
Pub. L. 95-619 inserted provisions relating to loans or advances of
credit insured under title I of the National Housing Act whose original
proceeds were applied for to finance energy conserving improvements or
solar energy systems and provisions relating to certain loans or
advances of credit for such purposes not so insured.
Effective Date of 1978 Amendment
Section 1703 of Pub. L. 95-630 provided that: ``This title [amending
sections 1451 and 1464 of this title] shall take effect upon enactment
[Nov. 10, 1978].''
Short Title of 1981 Amendment
Pub. L. 97-110, title II, Sec. 201, Dec. 26, 1981, 95 Stat. 1514,
provided that: ``This title [amending sections 1454 and 1717 of this
title and enacting provisions set out as a note under section 1454 of
this title] may be cited as the `Mortgage Purchase Amendments of
1981'.''
Short Title and Statement of Purpose
Section 301 of title III of Pub. L. 91-351, as amended by Pub. L.
101-73, title VII, Sec. 731(a), Aug. 9, 1989, 103 Stat. 429; Pub. L.
102-550, title XIII, Sec. 1382(a), Oct. 28, 1992, 106 Stat. 4002,
provided that:
``(a) This title [enacting this chapter] may be cited as the
`Federal Home Loan Mortgage Corporation Act'.
``(b) It is the purpose of the Federal Home Loan Mortgage
Corporation--
``(1) to provide stability in the secondary market for
residential mortgages;
``(2) to respond appropriately to the private capital market;
``(3) to provide ongoing assistance to the secondary market for
residential mortgages (including activities relating to mortgages on
housing for low- and moderate-income families involving a reasonable
economic return that may be less than the return earned on other
activities) by increasing the liquidity of mortgage investments and
improving the distribution of investment capital available for
residential mortgage financing; and
``(4) to promote access to mortgage credit throughout the Nation
(including central cities, rural areas, and underserved areas) by
increasing the liquidity of mortgage investments and improving the
distribution of investment capital available for residential
mortgage financing.''
Regulations
Section 1383 of Pub. L. 102-550 provided that:
``(a) In General.--The Secretary of Housing and Urban Development
and the Director, as appropriate, shall issue any final regulations
necessary to implement the amendments made by this subtitle [subtitle D
(Secs. 1381-1383) of title XIII of Pub. L. 102-550, amending this
section and sections 1452 to 1456, 1716, 1717 to 1719, 1723, 1723a, and
1723c of this title and provisions set out as a note above] not later
than the expiration of the 18-month period beginning on the date of the
enactment of this Act [Oct. 28, 1992].
``(b) Notice and Comment.--The regulations under this section shall
be issued after notice and opportunity for public comment pursuant to
the provisions of section 553 of title 5, United States Code.''
