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§ 1456. —  Immunity of Corporation; audits and reporting requirements; data collection; Housing Advisory Council.

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[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 

	 
	 


































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