[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1456]
TITLE 12--BANKS AND BANKING
CHAPTER 11A--FEDERAL HOME LOAN MORTGAGE CORPORATION
Sec. 1456. Immunity of Corporation; audits and reporting
requirements; data collection; Housing Advisory Council
(a) Rights and remedies of Corporation; State qualifications or similar
statutes
All rights and remedies of the Corporation, including without
limitation on the generality of the foregoing any rights and remedies of
the Corporation on, under, or with respect to any mortgage or any
obligation secured thereby, shall be immune from impairment, limitation,
or restriction by or under (1) any law (except laws enacted by the
Congress expressly in limitation of this sentence) which becomes
effective after the acquisition by the Corporation of the subject or
property on, under, or with respect to which such right or remedy arises
or exists or would so arise or exist in the absence of such law, or (2)
any administrative or other action which becomes effective after such
acquisition. The Corporation is authorized to conduct its business
without regard to any qualification or similar statute in any State.
(b) Government audits; procedure; access to records, etc.; reimbursement
of costs
(1) The programs, activities, receipts, expenditures, and financial
transactions of the Corporation shall be subject to audit by the
Comptroller General of the United States under such rules and
regulations as may be prescribed by the Comptroller General. The
representatives of the General Accounting Office shall have access to
all books, accounts, financial records, reports, files and all other
papers, things, or property belonging to or in use by the Corporation
and necessary to facilitate the audit, and they shall be afforded full
facilities for verifying transactions with the balances or securities
held by depositaries, fiscal agents, and custodians. A report on each
such audit shall be made by the Comptroller General to the Congress. The
Corporation shall reimburse the General Accounting Office for the full
cost of any such audit as billed therefor by the Comptroller General.
(2) To carry out this subsection, the representatives of the General
Accounting Office shall have access, upon request to the Corporation or
any auditor for an audit of the Corporation under subsection (d) of this
section, to any books, accounts, financial records, reports, files, or
other papers, things, or property belonging to or in use by the
Corporation and used in any such audit and to any papers, records,
files, and reports of the auditor used in such an audit.
(c) Financial reports; submission to Director; contents
(1) The Corporation shall submit to the Director of the Office of
Federal Housing Enterprise Oversight of the Department of Housing and
Urban Development annual and quarterly reports of the financial
condition and operations of the Corporation which shall be in such form,
contain such information, and be submitted on such dates as the Director
shall require.
(2) Each such annual report shall include--
(A) financial statements prepared in accordance with generally
accepted accounting principles;
(B) any supplemental information or alternative presentation
that the Director may require; and
(C) an assessment (as of the end of the Corporation's most
recent fiscal year), signed by the chief executive officer and chief
accounting or financial officer of the Corporation, of--
(i) the effectiveness of the internal control structure and
procedures of the Corporation; and
(ii) the compliance of the Corporation with designated
safety and soundness laws.
(3) The Corporation shall also submit to the Director any other
reports required by the Director pursuant to section 1314 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 [12
U.S.C. 4514].
(4) Each report of financial condition shall contain a declaration
by the president, vice president, treasurer, or any other officer
designated by the Board of Directors of the Corporation to make such
declaration, that the report is true and correct to the best of such
officer's knowledge and belief.
(d) Independent audits of financial statements
(1) The Corporation shall have an annual independent audit made of
its financial statements by an independent public accountant in
accordance with generally accepted auditing standards.
(2) In conducting an audit under this subsection, the independent
public accountant shall determine and report on whether the financial
statements of the Corporation (A) are presented fairly in accordance
with generally accepted accounting principles, and (B) to the extent
determined necessary by the Director, comply with any disclosure
requirements imposed under subsection (c)(2)(B) of this section.
(e) Mortgage data collection and reporting requirements
(1) The Corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to its
mortgages on housing consisting of 1 to 4 dwelling units. Such data
shall include--
(A) the income, census tract location, race, and gender of
mortgagors under such mortgages;
(B) the loan-to-value ratios of purchased mortgages at the time
of origination;
(C) whether a particular mortgage purchased is newly originated
or seasoned;
(D) the number of units in the housing subject to the mortgage
and whether the units are owner-occupied; and
(E) any other characteristics that the Secretary considers
appropriate, to the extent practicable.
(2) The Corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to its
mortgages on housing consisting of more than 4 dwelling units. Such data
shall include--
(A) census tract location of the housing;
(B) income levels and characteristics of tenants of the housing
(to the extent practicable);
(C) rent levels for units in the housing;
(D) mortgage characteristics (such as the number of units
financed per mortgage and the amount of loans);
(E) mortgagor characteristics (such as nonprofit, for-profit,
limited equity cooperatives);
(F) use of funds (such as new construction, rehabilitation,
refinancing);
(G) type of originating institution; and
(H) any other information that the Secretary considers
appropriate, to the extent practicable.
(3)(A) Except as provided in subparagraph (B), this subsection shall
apply only to mortgages purchased by the Corporation after December 31,
1992.
(B) This subsection shall apply to any mortgage purchased by the
Corporation after the date determined under subparagraph (A) if the
mortgage was originated before such date, but only to the extent that
the data referred in paragraph (1) or (2), as applicable, is available
to the Corporation.
(f) Report on housing activities; contents; public disclosure
(1) The Corporation shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives, the Committee
on Banking, Housing, and Urban Affairs of the Senate, and the Secretary
a report on its activities under subpart B of part 2 of subtitle A of
the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 [12 U.S.C. 4561 et seq.].
(2) The report under this subsection shall--
(A) include, in aggregate form and by appropriate category,
statements of the dollar volume and number of mortgages on owner-
occupied and rental properties purchased which relate to each of the
annual housing goals established under such subpart;
(B) include, in aggregate form and by appropriate category,
statements of the number of families served by the Corporation, the
income class, race, and gender of homebuyers served, the income
class of tenants of rental housing (to the extent such information
is available), the characteristics of the census tracts, and the
geographic distribution of the housing financed;
(C) include a statement of the extent to which the mortgages
purchased by the Corporation have been used in conjunction with
public subsidy programs under Federal law;
(D) include statements of the proportion of mortgages on housing
consisting of 1 to 4 dwelling units purchased by the Corporation
that have been made to first-time homebuyers, as soon as providing
such data is practicable, and identifying any special programs (or
revisions to conventional practices) facilitating homeownership
opportunities for first-time homebuyers;
(E) include, in aggregate form and by appropriate category, the
data provided to the Secretary under subsection (e)(1)(B) of this
section;
(F) compare the level of securitization versus portfolio
activity;
(G) assess underwriting standards, business practices,
repurchase requirements, pricing, fees, and procedures, that affect
the purchase of mortgages for low- and moderate-income families, or
that may yield disparate results based on the race of the borrower,
including revisions thereto to promote affordable housing or fair
lending;
(H) describe trends in both the primary and secondary
multifamily housing mortgage markets, including a description of the
progress made, and any factors impeding progress, toward
standardization and securitization of mortgage products for
multifamily housing;
(I) describe trends in the delinquency and default rates of
mortgages secured by housing for low- and moderate-income families
that have been purchased by the Corporation, including a comparison
of such trends with delinquency and default information for mortgage
products serving households with incomes above the median level that
have been purchased by the Corporation, and evaluate the impact of
such trends on the standards and levels of risk of mortgage products
serving low- and moderate-income families;
(J) describe in the aggregate the seller and servicer network of
the Corporation, including the volume of mortgages purchased from
minority-owned, women-owned, and community-oriented lenders, and any
efforts to facilitate relationships with such lenders;
(K) describe the activities undertaken by the Corporation with
nonprofit and for-profit organizations and with State and local
governments and housing finance agencies, including how the
Corporation's activities support the objectives of comprehensive
housing affordability strategies under section 12705 of title 42;
and
(L) include any other information that the Secretary considers
appropriate.
(3)(A) The Corporation shall make each report under this subsection
available to the public at the principal and regional offices of the
Corporation.
(B) Before making a report under this subsection available to the
public, the Corporation may exclude from the report information that the
Secretary has determined is proprietary information under section 1326
of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 [12 U.S.C. 4546].
(g) Affordable Housing Advisory Council
(1) Not later than 4 months after October 28, 1992, the Corporation
shall appoint an Affordable Housing Advisory Council to advise the
Corporation regarding possible methods for promoting affordable housing
for low- and moderate-income families.
(2) The Affordable Housing Advisory Council shall consist of 15
individuals, who shall include representatives of community-based and
other nonprofit and for-profit organizations and State and local
government agencies actively engaged in the promotion, development, or
financing of housing for low- and moderate-income families.
(Pub. L. 91-351, title III, Sec. 307, July 24, 1970, 84 Stat. 456; Pub.
L. 101-73, title VII, Sec. 731(j)(1), Aug. 9, 1989, 103 Stat. 435; Pub.
L. 102-550, title XIII, Sec. 1382(o)-(t), Oct. 28, 1992, 106 Stat. 4005-
4008.)
References in Text
The Federal Housing Enterprises Financial Safety and Soundness Act
of 1992, referred to in subsec. (f)(1), is title XIII of Pub. L. 102-
550, Oct. 28, 1992, 106 Stat. 3941. Subpart B of part 2 of subtitle A of
the Act is classified generally to subpart 2 (Sec. 4561 et seq.) of part
B of subchapter I of chapter 46 of this title. For complete
classification of this Act to the Code, see Short Title note under
section 4501 of this title and Tables.
Amendments
1992--Subsec. (b). Pub. L. 102-550, Sec. 1382(o), designated
existing provisions as par. (1), substituted ``The programs, activities,
receipts, expenditures, and financial transactions of the Corporation
shall be subject to audit by the Comptroller General of the United
States under such rules and regulations as may be prescribed by the
Comptroller General.'' for ``The financial transactions of the
Corporation shall be subject to audit by the General Accounting Office
in accordance with the principles and procedures applicable to
commercial corporate transactions under such rules and regulations as
may be prescribed by the Comptroller General of the United States.'',
and added par. (2).
Subsecs. (c) to (g). Pub. L. 102-550, Sec. 1382(p)-(t), added
subsecs. (c) to (g).
1989--Subsec. (a). Pub. L. 101-73 substituted ``The Corporation is
authorized to conduct its business without regard to any qualification
or similar statute in any State.'' for ``The Corporation shall be
entitled to all immunities and priorities, including without limitation
on the generality of the foregoing all immunities and priorities under
any such law or action, to which it would be entitled if it were the
United States or if it were an unincorporated agency of the United
States.''
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Effective Date of 1989 Amendment
Section 731(j)(2) of Pub. L. 101-73 provided that: ``The amendment
made by this subsection [amending this section] shall not apply to any
assertion of priority by the Federal Home Loan Mortgage Corporation with
respect to any cause of action or claim filed before the date of the
enactment of this Act [Aug. 9, 1989].''
Termination of Advisory Councils
Advisory councils established after Jan. 5, 1973, to terminate not
later than the expiration of the 2-year period beginning on the date of
their