(a) Duty to serve underserved markets
(1) 1 Duty To increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets, each enterprise shall provide leadership to the market in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages for very low-, low-, and moderate-income families with respect to the following underserved markets:
(A) Manufactured housing
The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families.
(B) Affordable housing preservation The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized underX
(i) the project-based and tenant-based rental assistance programs under section
1437f of title
42;
(ii) the program under section
1715z–1 of this title;
(iii) the below-market interest rate mortgage program under section
1715l (d)(4) of this title;
(iv) the supportive housing for the elderly program under section
1701q of this title;
(v) the supportive housing program for persons with disabilities under section
8013 of title
42;
(vi) the programs under title IV of the McKinney-Vento Homeless Assistance Act (
42 U.S.C.
11361 et seq.), but only permanent supportive housing projects subsidized under such programs;
(vii) the rural rental housing program under section
1485 of title
42;
(viii) the low-income housing tax credit under section
42 of title
26; and
(ix) comparable state and local affordable housing programs.
(C) Rural markets
The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, and low-, and moderate-income families in rural areas.
(b) In general To meet the housing goals established under this subpart and to carry out the duty under subsection (a) of this section, each enterprise shall
(1) design programs and products that facilitate the use of assistance provided by the Federal Government and State and local governments;
(2) develop relationships with
nonprofit">
nonprofit and for-profit organizations that develop and finance housing and with State and local governments, including housing finance agencies;
(3) take affirmative steps to
(A) assist primary lenders to make housing credit available in areas with concentrations of low-income and minority families, and
(B) assist insured depository institutions to meet their obligations under the Community Reinvestment Act of 1977 [
12 U.S.C.
2901 et seq.],
which shall include developing appropriate and prudent underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures; and
(4) develop the institutional capacity to help finance low- and moderate-income housing, including housing for first-time homebuyers.
(d) Evaluation and reporting of compliance
(1) In general The Director shall, by regulation, establish effective for 2010 and thereafter a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for 2010 and each year thereafter, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section
4521 (a) of this title.
(2) Separate evaluations In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into considerationX
(A) the development of loan products, more flexible underwriting guidelines, and other innovative approaches to providing financing to each of such underserved markets;
(B) the extent of outreach to qualified loan sellers and other market participants in each of such underserved markets;
(C) the volume of loans purchased in each of such underserved markets relative to the market opportunities available to the enterprise, except that the Director shall not establish specific quantitative targets nor evaluate the enterprises based solely on the volume of loans purchased; and
(D) the amount of investments and grants in projects which assist in meeting the needs of such underserved markets.
(3) Manufactured housing market
In determining whether an enterprise has complied with the duty under subparagraph (A) of subsection (a)(1), the Director may consider loans secured by both real and personal property.
(4) Prohibition of consideration of affordable housing fund grants for meeting duty to serve In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director may not consider any affordable housing fund grant amounts used under section
4567 of this title for eligible activities under subsection (g) of such section.
