-CITE-

12 USC CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE

CORPORATION 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

.

-HEAD-

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-MISC1-

Sec.

1451. Definitions.

1452. Federal Home Loan Mortgage Corporation.

(a) Creation; Board of Directors; policies; principal

office; membership; term; vacancies.

(b) Capital distributions; limitation.

(c) Powers of the Corporation.

(d) Investment of funds; designation as depositary,

custodian, or agent for Corporation of any

Federal Reserve bank, Federal home loan bank,

or any bank designated as depositary of public

money.

(e) Exemption from Federal, State, and local

taxation; exception; applicability of other

provisions.

(f) Actions by and against the Corporation;

jurisdiction; removal of actions; attachment or

execution issued against the Corporation.

(g) Mortgages, obligations, or other securities sold

by Corporation deemed lawful investments for

security purposes.

(h) Report on comparability of compensation policies

and financial performance of Corporation and

payments earned by executive officers;

prohibition on payments to terminated executive

officers.

1453. Capitalization of Federal Home Loan Mortgage Corporation.

(a) Common stock; issuance.

(b) Par value.

1454. Purchase and sale of mortgages; residential mortgages;

conventional mortgages; terms and conditions of sale or other

disposition; authority to enter into, perform, and carry out

transactions.

(a) Authority for purchase and sale; residential

mortgages; conventional mortgages; terms and

conditions of sale or other disposition;

lending activities.

(b) Authority of other institutions to enter into,

perform, and carry out transactions.

(c) Prior approval of Secretary for new programs.

1455. Obligations and securities of the Corporation.

(a) Authority to issue; terms and conditions;

validity.

(b) Prohibitions and restrictions; creation of liens

and charges; rank and priority; causes of

action to enforce; jurisdiction; service of

process.

(c) Purchase of obligations; funds, maximum amount of

purchases, etc.

(d) Validity of provisions; validity of restrictions,

prohibitions, liens, or charges.

(e) Authority to purchase, hold, or invest by person,

trust, or organization.

(f) Preferred stock.

(g) Securities exempt from regulation.

(h) Securities backed by mortgages not purchased by

Corporation.

(i) Prohibition on assessment or collection of fee or

charge by United States.

(j) Notes, debentures, or substantially identical

types of unsecured obligations; issuance,

maturities, interest rates, etc.

(k) Securities in form of debt obligations or trust

certificates of beneficial interest; issuance,

maturities, interest rates, etc.

1456. Immunity of Corporation; audits and reporting requirements;

data collection; Housing Advisory Council.

(a) Rights and remedies of Corporation; State

qualifications or similar statutes.

(b) Government audits; procedure; access to records,

etc.; reimbursement of costs.

(c) Financial reports; submission to Director;

contents.

(d) Independent audits of financial statements.

(e) Mortgage data collection and reporting

requirements.

(f) Report on housing activities; contents; public

disclosure.

(g) Affordable Housing Advisory Council.

1457. Prohibited activities; penalties for violations by

organizations, officers and members of organizations, and

individuals.

1458. Territorial applicability.

1459. Separability.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1422b, 4541, 4562, 4564,

4566, 4603, 4631, 4636 of this title.

-CITE-

12 USC Sec. 1451 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1451. Definitions

-STATUTE-

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) (FOOTNOTE 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.

(FOOTNOTE 1) See References in Text note below.

(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.).

-SOURCE-

(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, Sec. 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.)

-REFTEXT-

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.

-MISC2-

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 (Sec. 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.''

-CITE-

12 USC Sec. 1452 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1452. Federal Home Loan Mortgage Corporation

-STATUTE-

(a) Creation; Board of Directors; policies; principal office;

membership; term; vacancies

(1) There is hereby created the Federal Home Loan Mortgage

Corporation, which shall be a body corporate under the direction of

a Board of Directors. Within the limitations of law and regulation,

the Board of Directors shall determine the general policies that

govern the operations of the Corporation. The principal office of

the Corporation shall be in the District of Columbia or at any

other place determined by the Corporation.

(2)(A) The Board of Directors of the Corporation shall consist of

18 persons, 5 of whom shall be appointed annually by the President

of the United States and the remainder of whom shall be elected

annually by the voting common stockholders. The Board of Directors

shall at all times have as members appointed by the President of

the United States at least 1 person from the homebuilding industry,

at least 1 person from the mortgage lending industry, at least 1

person from the real estate industry, and at least 1 person from an

organization that has represented consumer or community interests

for not less than 2 years or 1 person who has demonstrated a career

commitment to the provision of housing for low-income households.

(B) Each member of the Board of Directors shall be such or

elected for a term ending on the date of the next annual meeting of

the voting common stockholders, except that any appointed member

may be removed from office by the President for good cause.

(C) Any appointive seat on the Board of Directors that becomes

vacant shall be filled by appointment by the President of the

United States, but only for the unexpired portion of the term. Any

elective seat on the Board of Directors that becomes vacant after

the annual election of the directors shall be filled by the Board

of Directors, but only for the unexpired portion of the term.

(D) Any member of the Board of Directors who is a full-time

officer or employee of the Federal Government shall not, as such

member, receive compensation for services as such a member.

(b) Capital distributions; limitation

(1) Except as provided in paragraph (2), the Corporation may make

such capital distributions (as such term is defined in section 4502

of this title) as may be declared by the Board of Directors.

(2) The Corporation may not make any capital distribution that

would decrease the total capital of the Corporation (as such term

is defined in section 4502 of this title) to an amount less than

the risk-based capital level for the Corporation established under

section 4611 of this title or that would decrease the core capital

of the Corporation (as such term is defined in section 4502 of this

title) to an amount less than the minimum capital level for the

Corporation established under section 4612 of this title, without

prior written approval of the distribution by the Director of the

Office of Federal Housing Enterprise Oversight of the Department of

Housing and Urban Development.

(c) Powers of the Corporation

The Corporation shall have power (1) to adopt, alter, and use a

corporate seal; (2) to have succession until dissolved by Act of

Congress; (3) to make and enforce such bylaws, rules, and

regulations as may be necessary or appropriate to carry out the

purposes or provisions of this chapter; (4) to make and perform

contracts, agreements, and commitments; (5) to prescribe and impose

fees and charges for services by the Corporation; (6) to settle,

adjust, and compromise, and with or without consideration or

benefit to the Corporation to release or waive in whole or in part,

in advance or otherwise, any claim, demand, or right of, by, or

against the Corporation; (7) to sue and be sued, complain and

defend, in any State, Federal, or other court; (8) to acquire,

take, hold, and own, and to deal with and dispose of any property;

and (9) to determine its necessary expenditures and the manner in

which the same shall be incurred, allowed, and paid, and appoint,

employ, and fix and provide for the compensation and benefits of

officers, employees, attorneys, and agents as the Board of

Directors determines reasonable and comparable with compensation

for employment in other similar businesses (including publicly held

financial institutions or other major financial services companies)

involving similar duties and responsibilities, except that a

significant portion of potential compensation of all executive

officers (as such term is defined in subsection (h)(3) of this

section) of the Corporation shall be based on the performance of

the Corporation, all without regard to any other law except as may

be provided by the Corporation or by laws hereafter enacted by the

Congress expressly in limitation of this sentence. The

Corporation, with the consent of any such department,

establishment, or instrumentality, including any field services

thereof, may utilize and act through any such department,

establishment, or instrumentality and may avail itself of the use

of information, services, facilities, and personnel thereof, and

may pay compensation therefor, and all of the foregoing are hereby

authorized to provide the same to the Corporation as it may

request.

(d) Investment of funds; designation as depositary, custodian, or

agent for Corporation of any Federal Reserve bank, Federal home

loan bank, or any bank designated as depositary of public money

Funds of the Corporation may be invested in such investments as

the Board of Directors may prescribe. Any Federal Reserve bank or

Federal home loan bank, or any bank as to which at the time of its

designation by the Corporation there is outstanding a designation

by the Secretary of the Treasury as a general or other depositary

of public money, may be designated by the Corporation as a

depositary or custodian or as a fiscal or other agent of the

Corporation, and is hereby authorized to act as such depositary,

custodian, or agent. When designated for that purpose by the

Secretary of the Treasury, the Corporation shall be a depositary of

public money, under such regulations as may be prescribed by the

Secretary of the Treasury, and may also be employed as fiscal or

other agent of the United States, and it shall perform all such

reasonable duties as such depositary or agent as may be required of

it.

(e) Exemption from Federal, State, and local taxation; exception;

applicability of other provisions

The Corporation, including its franchise, activities, capital,

reserves, surplus, and income, shall be exempt from all taxation

now or hereafter imposed by any territory, dependency, or

possession of the United States or by any State, county,

municipality, or local taxing authority, except that any real

property of the Corporation shall be subject to State, territorial,

county, municipal, or local taxation to the same extent according

to its value as other real property is taxed.

(f) Actions by and against the Corporation; jurisdiction; removal

of actions; attachment or execution issued against the

Corporation

Notwithstanding section 1349 of title 28 or any other provision

of law, (1) the Corporation shall be deemed to be an agency

included in sections 1345 and 1442 of such title 28; (2) all civil

actions to which the Corporation is a party shall be deemed to

arise under the laws of the United States, and the district courts

of the United States shall have original jurisdiction of all such

actions, without regard to amount or value; and (3) any civil or

other action, case or controversy in a court of a State, or in any

court other than a district court of the United States, to which

the Corporation is a party may at any time before the trial thereof

be removed by the Corporation, without the giving of any bond or

security, to the district court of the United States for the

district and division embracing the place where the same is

pending, or, if there is no such district court, to the district

court of the United States for the district in which the principal

office of the Corporation is located, by following any procedure

for removal of causes in effect at the time of such removal.

(g) Mortgages, obligations, or other securities sold by Corporation

deemed lawful investments for security purposes

All mortgages, obligations, or other securities which are or have

been sold by the Corporation pursuant to section 1454 or section

1455 of this title shall be lawful investments, and may be accepted

as security for all fiduciary, trust, and public funds, the

investment or deposits of which shall be under the authority and

control of the United States or any officers thereof.

(h) Report on comparability of compensation policies and financial

performance of Corporation and payments earned by executive

officers; prohibition on payments to terminated executive

officers

(1) Not later than June 30, 1993, and annually thereafter, the

Corporation shall submit a report to the Committee on Banking,

Finance and Urban Affairs of the House of Representatives and the

Committee on Banking, Housing, and Urban Affairs of the Senate on

(A) the comparability of the compensation policies of the

Corporation with the compensation policies of other similar

businesses, (B) in the aggregate, the percentage of total cash

compensation and payments under employee benefit plans (which shall

be defined in a manner consistent with the Corporation's proxy

statement for the annual meeting of shareholders for the preceding

year) earned by executive officers of the Corporation during the

preceding year that was based on the Corporation's performance, and

(C) the comparability of the Corporation's financial performance

with the performance of other similar businesses. The report shall

include a copy of the Corporation's proxy statement for the annual

meeting of shareholders for the preceding year.

(2) Notwithstanding the first sentence of subsection (c) of this

section, after October 28, 1992, the Corporation may not enter into

any agreement or contract to provide any payment of money or other

thing of current or potential value in connection with the

termination of employment of any executive officer of the

Corporation, unless such agreement or contract is approved in

advance by the Director of the Office of Federal Housing Enterprise

Oversight of the Department of Housing and Urban Development. The

Director may not approve any such agreement or contract unless the

Director determines that the benefits provided under the agreement

or contract are comparable to benefits under such agreements for

officers of other public and private entities involved in financial

services and housing interests who have comparable duties and

responsibilities. For purposes of this paragraph, any

renegotiation, amendment, or change after October 28, 1992, to any

such agreement or contract entered into on or before October 28,

1992, shall be considered entering into an agreement or contract.

(3) For purposes of this subsection, the term ''executive

officer'' has the meaning given the term in section 4502 of this

title.

-SOURCE-

(Pub. L. 91-351, title III, Sec. 303, July 24, 1970, 84 Stat. 452;

Pub. L. 96-153, title III, Sec. 316(b), Dec. 21, 1979, 93 Stat.

1118; Pub. L. 98-369, div. A, title I, Sec. 177(a), July 18, 1984,

98 Stat. 709; Pub. L. 101-73, title VII, Sec. 731(b)(1), (c), Aug.

9, 1989, 103 Stat. 429, 431; Pub. L. 102-550, title XIII, Sec.

1382(c)(1), (d)-(h), Oct. 28, 1992, 106 Stat. 4002-4004.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(2)(A). Pub. L. 102-550, Sec. 1382(c)(1), in

second sentence, struck out ''and'' after ''mortgage lending

industry,'' and inserted before period '', and at least 1 person

from an organization that has represented consumer or community

interests for not less than 2 years or 1 person who has

demonstrated a career commitment to the provision of housing for

low-income households''.

Subsec. (a)(2)(B). Pub. L. 102-550, Sec. 1382(d), inserted before

period at end '', except that any appointed member may be removed

from office by the President for good cause''.

Subsec. (b). Pub. L. 102-550, Sec. 1382(e), amended subsec. (b)

generally, substituting present provisions for provisions which

outlined general regulatory authority of the Secretary of Housing

and Urban Development over Corporation in such areas as mortgage

purchases, dividends, examinations and audits, outstanding

obligations, conversion of stock and debt obligations, residential

mortgage transactions, and approval or disapproval of requests.

Subsec. (c). Pub. L. 102-550, Sec. 1382(f)(1), (g), in cl. (9) of

first sentence, inserted ''as the Board of Directors determines

reasonable and comparable with compensation for employment in other

similar businesses (including publicly held financial institutions

or other major financial services companies) involving similar

duties and responsibilities, except that a significant portion of

potential compensation of all executive officers (as such term is

defined in subsection (h)(3) of this section) of the Corporation

shall be based on the performance of the Corporation'' and struck

out after first sentence ''Nothing in this chapter or any other law

shall be construed to prevent the appointment, employment, and

provision for compensation and benefits, as an officer, employee,

attorney, or agent of the Corporation, of any officer, employee,

attorney, or agent of any department, establishment, or corporate

or other instrumentality of the Government, including any Federal

home loan bank or member thereof.''

Subsec. (f). Pub. L. 102-550, Sec. 1382(h), struck out at end

''No attachment or execution shall be issued against the

Corporation or any of its property before final judgment in any

State, Federal, or other court.''

Subsec. (h). Pub. L. 102-550, Sec. 1382(f)(2), added subsec. (h).

1989 - Subsec. (a). Pub. L. 101-73, Sec. 731(b)(1), amended

subsec. (a) generally, reorganizing provisions into pars. (1) and

(2), and substituting provisions setting forth general policies as

governing Board, membership requirements and vacancies, for

provisions setting forth status of members, liabilities, and

conditions and limitations.

Subsecs. (b) to (g). Pub. L. 101-73, Sec. 731(c), added subsec.

(b) and redesignated former subsecs. (b) to (f) as (c) to (g),

respectively.

1984 - Subsec. (d). Pub. L. 98-369 struck out ''by the United

States,'' before ''by any territory'', substituted ''possession of

the United States'' for ''possession thereof,'' and struck out

''The provisions of this subsection shall be applicable without

regard to any other law, including without limitation on the

generality of the foregoing section 3301 of title 26, except laws

hereafter enacted by Congress expressly in limitation of this

subsection.''

1979 - Subsec. (f). Pub. L. 96-153 added subsec. (f).

-CHANGE-

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.

-MISC4-

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1382(c)(2) of Pub. L. 102-550 provided that: ''The

amendments made by paragraph (1) (amending this section) shall

apply to the first annual appointment by the President of members

to the Board of Directors of the Federal Home Loan Mortgage

Corporation that occurs after the date of the enactment of this Act

(Oct. 28, 1992).''

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369, effective Jan. 1, 1985, see section

177(d) of Pub. L. 98-369, set out as a note under section 172 of

Title 26, Internal Revenue Code.

TRANSITIONAL PROVISIONS

Section 731(b)(2) of Pub. L. 101-73 provided that:

''(A) Interim board. -

''(i) Establishment. - There shall be an interim Board of

Directors of the Federal Home Loan Mortgage Corporation, which

shall serve from the date of the enactment of this Act (Aug. 9,

1989) until the date of the 1st meeting of the voting common

shareholders of the Corporation at which the first election of

the directors elected by the shareholders occurs.

''(ii) Members. - The interim Board of Directors of the Federal

Home Loan Mortgage Corporation shall consist of -

''(I) the President of the Corporation; and

''(II) the persons who were (on the day before the date of

the enactment of this Act) the Chairman of the Federal Home

Loan Bank Board and the Secretary of Housing and Urban

Development (or their designees).

''(iii) Quorum. - A quorum of the interim Board of Directors of

the Federal Home Loan Mortgage Corporation shall consist of a

majority of the directors duly serving from time to time.

''(B) Election of permanent directors. - The first meeting of the

voting common shareholders of the Federal Home Loan Mortgage

Corporation for election of directors shall occur, under procedures

established by the Corporation, within 6 months after the date of

the enactment of this Act.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1455, 4513 of this title.

-CITE-

12 USC Sec. 1453 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1453. Capitalization of Federal Home Loan Mortgage Corporation

-STATUTE-

(a) Common stock; issuance

The common stock of the Corporation shall consist of voting

common stock, which shall be issued to such holders in the manner

and amount, and subject to any limitations on concentration of

ownership, as may be established by the Corporation.

(b) Par value

The voting common stock shall have such par value and other

characteristics as the Corporation provides. The voting common

stock shall be vested with all voting rights, each share being

entitled to 1 vote. The free transferability of the voting common

stock at all times to any person, firm, corporation or other entity

shall not be restricted except that, as to the Corporation, it

shall be transferable only on the books of the Corporation.

-SOURCE-

(Pub. L. 91-351, title III, Sec. 304, July 24, 1970, 84 Stat. 454;

Pub. L. 101-73, title VII, Sec. 731(d)(1), (3), Aug. 9, 1989, 103

Stat. 432; Pub. L. 102-550, title XIII, Sec. 1382(i), Oct. 28,

1992, 106 Stat. 4004.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550, Sec. 1382(i)(2), (3)(C),

redesignated par. (1) as subsec. (a), struck out provisions of par.

(1)(A) which related to common stock of Corporation consisting in

part of nonvoting common stock issued only to Federal home loan

banks, restate provisions of par. (1)(B) as text of subsec. (a),

and redesignated par. (2) as subsec. (b).

Subsec. (b). Pub. L. 102-550, Sec. 1382(i)(1), (3), redesignated

subsec. (a)(2) as (b), struck out ''nonvoting common stock and

the'' before ''voting common stock shall have such'', struck out at

end ''Nonvoting common stock of the Corporation shall be evidenced

in the manner and shall be transferable only to the extent, to the

transferees, and in the manner, provided by the Corporation.'', and

struck out former subsec. (b) which read as follows: ''The Federal

home loan banks shall from time to time subscribe, at such price

not less than par as the Corporation shall from time to time fix,

for such amounts of nonvoting common stock as the Corporation

prescribes, and such banks shall pay therefor at such time or times

and in such amount or amounts as may from time to time be fixed by

call of the Corporation. The amount of the payments for which such

banks may be obligated under such subscriptions shall not exceed a

cumulative total of $100,000,000.''

Subsec. (c). Pub. L. 102-550, Sec. 1382(i)(1), struck out subsec.

(c) which read as follows: ''Subscriptions of the respective

Federal home loan banks to nonvoting common stock shall be

allocated by the Corporation.''

Subsec. (d). Pub. L. 102-550, Sec. 1382(i)(1), struck out subsec.

(d) which read as follows: ''The Corporation may retire at any time

all or any part of the nonvoting common stock of the Corporation,

or may call for retirement all or any part of the nonvoting common

stock of the Corporation by (1) publishing a notice of the call in

the Federal Register or providing such notice in such other manner

as the Corporation may determine to be appropriate, and (2)

depositing with the Treasurer of the United States, for the purpose

of such retirement, funds sufficient to effect such retirement. No

call for the retirement of any nonvoting common stock shall be

made, and no nonvoting common stock shall be retired without call,

if immediately after such action, the total of the nonvoting common

stock not called for retirement and of the reserves and surplus of

the Corporation would be less than $100,000,000. The retirement of

nonvoting common stock shall be at the par value thereof, or at the

price at which such nonvoting common stock was issued if such price

is greater than par value. No declaration of any dividend on

nonvoting common stock of the Corporation shall be effective with

respect to nonvoting common stock which at the time of such

declaration is the subject of an outstanding retirement call the

effective date of which has arrived.''

1989 - Subsec. (a). Pub. L. 101-73, Sec. 731(d)(1), amended

subsec. (a) generally. Prior to amendment, subsec. (a) read as

follows: ''The capital stock of the Corporation shall consist of

nonvoting common stock which shall be issued only to Federal home

loan banks and shall have such par value and such other

characteristics as the Corporation prescribes. Stock of the

Corporation shall be evidenced in such manner and shall be

transferable only to such extent, to such transferees, and in such

manner as the Corporation prescribes.''

Subsec. (b). Pub. L. 101-73, Sec. 731(d)(3)(A), substituted

''nonvoting common stock'' for ''common stock''.

Subsec. (c). Pub. L. 101-73, Sec. 731(d)(3)(B), substituted

''nonvoting common stock'' for ''such stock''.

Subsec. (d). Pub. L. 101-73, Sec. 731(d)(3)(C), inserted

''nonvoting common'' before ''stock'' wherever appearing.

CONVERSION OF STOCK

Section 731(d)(2) of Pub. L. 101-73 provided that: ''On the date

of the enactment of this Act (Aug. 9, 1989), each share of

outstanding senior participating preferred stock of the Federal

Home Loan Mortgage Corporation, with a par value of $2.50 per

share, shall be changed into and shall become 1 share of voting

common stock of the Corporation. Such voting common stock shall,

with respect to the nonvoting common stock of the Corporation,

retain all of the rights, priorities and privileges of the senior

participating preferred stock. The transformation of the senior

participating preferred stock into voting common stock under this

paragraph shall be deemed to satisfy the obligation of the

Corporation to redeem senior participating preferred stock for

non-callable common stock.''

-CITE-

12 USC Sec. 1454 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1454. Purchase and sale of mortgages; residential mortgages;

conventional mortgages; terms and conditions of sale or other

disposition; authority to enter into, perform, and carry out

transactions

-STATUTE-

(a) Authority for purchase and sale; residential mortgages;

conventional mortgages; terms and conditions of sale or other

disposition; lending activities

(1) The Corporation is authorized to purchase, and make

commitments to purchase, residential mortgages. The Corporation

may hold and deal with, and sell or otherwise dispose of, pursuant

to commitments or otherwise, any such mortgage or interest

therein. The operations of the Corporation under this section

shall be confined so far as practicable to residential mortgages

which are deemed by the Corporation to be of such quality, type,

and class as to meet generally the purchase standards imposed by

private institutional mortgage investors. The Corporation may

establish requirements, and impose charges or fees, which may be

regarded as elements of pricing, for different classes of sellers

or servicers, and for such purposes the Corporation is authorized

to classify sellers or servicers according to type, size, location,

assets, or, without limitation on the generality of the foregoing,

on such other basis or bases of differentiation as the Corporation

may consider necessary or appropriate to effectuate the purposes or

provisions of this chapter. The Corporation may specify

requirements concerning among other things, (A) minimum net worth;

(B) supervisory mechanisms; (C) warranty compensation mechanisms;

(D) prior approval of facilities; (E) prior origination and

servicing experience with respect to different types of mortgages;

(F) capital contributions and substitutes; (G) mortgage purchase

volume limits; and (H) reduction of mortgage purchases during

periods of borrowing. With respect to any particular type of

seller, the Corporation shall not be required to make available

programs involving prior approval of mortgages, optional delivery

of mortgages, and purchase of other than conventional mortgages to

an extent greater than the Corporation elects to make such programs

available to other types of eligible sellers. Any requirements

specified by the Corporation pursuant to the preceding three

sentences must bear a rational relationship to the purposes or

provisions of this chapter, but will not be considered

discriminatory solely on the grounds of differential effects on

types of eligible sellers. Insofar as is practicable, the

Corporation shall make reasonable efforts to encourage

participation in its programs by each type of eligible seller.

Nothing in this section authorizes the Corporation to impose any

charge or fee upon any mortgagee approved by the Secretary of

Housing and Urban Development for participation in any mortgage

insurance program under the National Housing Act (12 U.S.C. 1701 et

seq.) solely because of such status.

(2) No conventional mortgage secured by a property comprising

one- to four-family dwelling units shall be purchased under this

section if the outstanding principal balance of the mortgage at the

time of purchase exceeds 80 per centum of the value of the property

securing the mortgage, unless (A) the seller retains a

participation of not less than 10 per centum in the mortgage; (B)

for such period and under such circumstances as the Corporation may

require, the seller agrees to repurchase or replace the mortgage

upon demand of the Corporation in the event that the mortgage is in

default; or (C) that portion of the unpaid principal balance of the

mortgage which is in excess of such 80 per centum is guaranteed or

insured by a qualified insurer as determined by the Corporation.

The Corporation shall not issue a commitment to purchase a

conventional mortgage prior to the date the mortgage is originated,

if such mortgage is eligible for purchase under the preceding

sentence only by reason of compliance with the requirements of

clause (A) of such sentence. The Corporation may purchase a

conventional mortgage which was originated more than one year prior

to the purchase date only if the seller is the Federal Deposit

Insurance Corporation, the Resolution Trust Corporation, the

National Credit Union Administration, or any other seller currently

engaged in mortgage lending or investing activities. With respect

to any transaction in which a seller contemporaneously sells

mortgages originated more than one year old prior to the date of

sale to the Corporation and receives in payment for such mortgages

securities representing undivided interests only in those

mortgages, the Corporation shall not impose any fee or charge upon

an eligible seller which is not a member of a Federal Home Loan

Bank which differs from that imposed upon an eligible seller which

is such a member. The Corporation shall establish limitations

governing the maximum original principal obligation of conventional

mortgages that are purchased by it; in any case in which the

Corporation purchases a participation interest in such a mortgage,

the limitation shall be calculated with respect to the total

original principal obligation of the mortgage and not merely with

respect to the interest purchased by the Corporation. Such

limitations shall not exceed $93,750 for a mortgage secured by a

single-family residence, $120,000 for a mortgage secured by a

two-family residence, $145,000 for a mortgage secured by a

three-family residence, and $180,000 for a mortgage secured by a

four-family residence, except that such maximum limitations shall

be adjusted effective January 1 of each year beginning with 1981.

Each such adjustment shall be made by adding to each such amount

(as it may have been previously adjusted) a percentage thereof

equal to the percentage increase during the twelve-month period

ending with the previous October in the national average one-family

house price in the monthly survey of all major lenders conducted by

the Federal Housing Finance Board. The foregoing limitations may be

increased by not to exceed 50 per centum with respect to properties

located in Alaska, Guam, Hawaii, and the Virgin Islands.

(3) The sale or other disposition by the Corporation of a

mortgage under this section may be with or without recourse, and

shall be upon such terms and conditions relating to resale,

repurchase, guaranty, substitution, replacement, or otherwise as

the Corporation may prescribe.

(4)(A) The Corporation is authorized to purchase, service, sell,

lend on the security of, and otherwise deal in (i) residential

mortgages that are secured by a subordinate lien against a one- to

four-family residence that is the principal residence of the

mortgagor; and (ii) residential mortgages that are secured by a

subordinate lien against a property comprising five or more family

dwelling units. If the Corporation shall have purchased, serviced,

sold, or otherwise dealt with any other outstanding mortgage

secured by the same residence, the aggregate original amount of

such other mortgage and the mortgage authorized to be purchased,

serviced, sold, or otherwise dealt with under this paragraph shall

not exceed the applicable limitation determined under paragraph

(2).

(B) The Corporation shall establish limitations governing the

maximum original principal obligation of such mortgages. In any

case in which the Corporation purchases a participation interest in

such a mortgage, the limitation shall be calculated with respect to

the total original principal obligation of such mortgage secured by

a subordinate lien and not merely with respect to the interest

purchased by the Corporation. Such limitations shall not exceed (i)

with respect to mortgages described in subparagraph (A)(i), 50 per

centum of the single-family residence mortgage limitation

determined under paragraph (2); and (ii) with respect to mortgages

described in subparagraph (A)(ii), the applicable limitation

determined under paragraph (2).

(C) No subordinate mortgage against a one- to four-family

residence shall be purchased by the Corporation if the total

outstanding indebtedness secured by the property as a result of

such mortgage exceeds 80 per centum of the value of such property

unless (i) that portion of such total outstanding indebtedness that

exceeds such 80 per centum is guaranteed or insured by a qualified

insurer as determined by the Corporation; (ii) the seller retains a

participation of not less than 10 per centum in the mortgage; or

(iii) for such period and under such circumstances as the

Corporation may require, the seller agrees to repurchase or replace

the mortgage upon demand of the Corporation in the event that the

mortgage is in default. The Corporation shall not issue a

commitment to purchase a subordinate mortgage prior to the date the

mortgage is originated, if such mortgage is eligible for purchase

under the preceding sentence only by reason of compliance with the

requirements of clause (iii) of such sentence.

(5) The Corporation is authorized to lend on the security of, and

to make commitments to lend on the security of, any mortgage that

the Corporation is authorized to purchase under this section. The

volume of the Corporation's lending activities and the

establishment of its loan ratios, interest rates, maturities, and

charges or fees in its secondary market operations under this

paragraph, shall be determined by the Corporation from time to

time; and such determinations shall be consistent with the

objectives that the lending activities shall be conducted on such

terms as will reasonably prevent excessive use of the Corporation's

facilities, and that the operations of the Corporation under this

paragraph shall be within its income derived from such operations

and that such operations shall be fully self-supporting. The

Corporation shall not be permitted to use its lending authority

under this paragraph (A) to advance funds to a mortgage seller on

an interim basis, using mortgage loans as collateral, pending the

sale of the mortgages in the secondary market; or (B) to originate

mortgage loans. Notwithstanding any Federal, State, or other law

to the contrary, the Corporation is hereby empowered, in connection

with any loan under this paragraph, whether before or after any

default, to provide by contract with the borrower for the

settlement or extinguishment, upon default, of any redemption,

equitable, legal, or other right, title, or interest of the

borrower in any mortgage or mortgages that constitute the security

for the loan; and with respect to any such loan, in the event of

default and pursuant otherwise to the terms of the contract, the

mortgages that constitute such security shall become the absolute

property of the Corporation.

(b) Authority of other institutions to enter into, perform, and

carry out transactions

Notwithstanding any other law, authority to enter into and to

perform and carry out any transactions or matter referred to in

this section is conferred on any Federal home loan bank, the

Resolution Trust Corporation, the Federal Deposit Insurance

Corporation, the National Credit Union Administration, any Federal

savings and loan association, any Federal home loan bank member,

and any other financial institution the deposits or accounts of

which are insured by an agency of the United States to the extent

that Congress has the power to confer such authority.

(c) Prior approval of Secretary for new programs

The Corporation may not implement any new program (as such term

is defined in section 4502 of this title) before obtaining the

approval of the Secretary under section 4542 of this title.

-SOURCE-

(Pub. L. 91-351, title III, Sec. 305, July 24, 1970, 84 Stat. 454;

Pub. L. 93-383, title VIII, Sec. 805(a), (b), Aug. 22, 1974, 88

Stat. 726; Pub. L. 93-495, title I, Sec. 113, Oct. 28, 1974, 88

Stat. 1506; Pub. L. 95-128, title IV, Sec. 408(b), Oct. 12, 1977,

91 Stat. 1138; Pub. L. 95-557, title III, Sec. 321(a), (b), Oct.

31, 1978, 92 Stat. 2101; Pub. L. 96-294, title V, Sec. 534(a)(1),

June 30, 1980, 94 Stat. 740; Pub. L. 96-399, title III, Sec.

313(b), Oct. 8, 1980, 94 Stat. 1644; Pub. L. 97-110, title II, Sec.

202(a), (b)(1), 203, Dec. 26, 1981, 95 Stat. 1514, 1515; Pub. L.

98-440, title II, Sec. 201(b), 203(b)(2), 205(b), 206(b), Oct. 3,

1984, 98 Stat. 1693-1696; Pub. L. 100-122, Sec. 2(b)(2), Sept. 30,

1987, 101 Stat. 793; Pub. L. 100-154, Nov. 5, 1987, 101 Stat. 890;

Pub. L. 100-170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100-179,

Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100-200, Dec. 21, 1987, 101

Stat. 1327; Pub. L. 100-242, title IV, Sec. 443(b), 445, Feb. 5,

1988, 101 Stat. 1922; Pub. L. 100-628, title X, Sec. 1068(b), Nov.

7, 1988, 102 Stat. 3726; Pub. L. 101-73, title VII, Sec. 731(e),

(f)(2), Aug. 9, 1989, 103 Stat. 433; Pub. L. 102-550, title XIII,

Sec. 1382(j)-(m), Oct. 28, 1992, 106 Stat. 4004; Pub. L. 105-276,

title II, Sec. 202(a), title V, Sec. 582(a)(14), Oct. 21, 1998, 112

Stat. 2483, 2644; Pub. L. 105-277, div. A, Sec. 122, Oct. 21,

1998, 112 Stat. 2681-546.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in subsec. (a)(1), is act

June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is

classified principally to chapter 13 (Sec. 1701 et seq.) of this

title. For complete classification of this Act to the Code, see

section 1701 of this title and Tables.

This chapter, referred to in subsec. (a)(1), was in the original

''this Act'' and has been translated as reading ''this title'',

meaning title III of Pub. L. 91-351, to reflect the probable intent

of Congress.

-MISC2-

AMENDMENTS

1998 - Subsec. (a)(2). Pub. L. 105-276, Sec. 582(a)(14), struck

out penultimate sentence which read as follows: ''With respect to

mortgages secured by property comprising five or more family

dwelling units, such limitations shall not exceed 125 per centum of

the dollar amounts set forth in section 207(c)(3) of the National

Housing Act, except that such limitations may be increased by the

Corporation (taking into account construction costs) to not to

exceed 240 per centum of such dollar amounts in any geographical

area for which the Secretary of Housing and Urban Development

determines under such section that cost levels require any increase

in the dollar amount limitations under such section.''

Pub. L. 105-276, Sec. 202(a), which directed the amendment of the

first sentence of par. (2) by striking out ''or'' at end of cl. (B)

and substituting ''; or (D) the mortgage is subject to default loss

protection that the Corporation determines is financially equal or

superior, on an individual or pooled basis, to the protection

provided by clause (C) of this sentence: Provided, That if the

Director of the Office of Federal Housing Enterprise Oversight

subsequently finds that such default loss protection determined by

the Corporation does not provide such equal or superior protection,

the Corporation shall provide such additional default loss

protection for such mortgage, as approved by the Director of the

Office of Federal Housing Enterprise Oversight, necessary to

provide such equal or superior protection.'' for the period at end,

was repealed by Pub. L. 105-277, effective upon enactment of Pub.

L. 105-276.

1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 1382(j), in first

sentence, substituted a period for ''from any Federal home loan

bank, the Resolution Trust Corporation, the Federal Deposit

Insurance Corporation, the National Credit Union Administration,

any member of a Federal home loan bank, or any other financial

institution the deposits or accounts of which are insured by an

agency of the United States, or from any financial institution the

deposits or accounts of which are insured under the laws of any

State if the total amount of time and savings deposits held in all

such institutions in that State is more than 20 per centum of the

total amount of such deposits in all banks, building and loan,

savings and loan, and homestead associations (including cooperative

banks) in that State or from any mortgagee approved by the

Secretary of Housing and Urban Development for participation in any

mortgage insurance program under the National Housing Act or 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.'' and in second sentence, substituted a period for '', and

the servicing on any such mortgage may be performed by the seller

or by a financial institution qualified as a seller under the

provisions of the preceding sentence, or by a mortgagee approved by

the Secretary of Housing and Urban Development for participation in

any mortgage insurance program under the National Housing Act, with

which institution or mortgagee the seller may contract.''

Subsec. (a)(2). Pub. L. 102-550, Sec. 1382(k), substituted

''Hawaii, and the Virgin Islands'' for ''and Hawaii'' in last

sentence.

Subsec. (c). Pub. L. 102-550, Sec. 1382(l), (m), added subsec.

(c) and struck out former subsec. (c) which read as follows: ''The

Board of Directors may not impose any annual limitation on the

maximum aggregate principal amount of mortgages purchased by the

Corporation.''

1989 - Subsec. (a)(1). Pub. L. 101-73, Sec. 731(e)(1), (f)(2)(A),

substituted ''Resolution Trust Corporation'' for ''Federal Savings

and Loan Insurance Corporation'' and inserted at end ''Nothing in

this section authorizes the Corporation to impose any charge or fee

upon any mortgagee approved by the Secretary of Housing and Urban

Development for participation in any mortgage insurance program

under the National Housing Act solely because of such status.''

Subsec. (a)(2). Pub. L. 101-73, Sec. 731(f)(2), substituted

''Resolution Trust Corporation'' for ''Federal Savings and Loan

Insurance Corporation'' and ''Federal Housing Finance Board'' for

''Federal Home Loan Bank Board''.

Subsec. (a)(5). Pub. L. 101-73, Sec. 731(e)(2), added par. (5).

Subsec. (b). Pub. L. 101-73, Sec. 731(f)(2)(A), substituted

''Resolution Trust Corporation'' for ''Federal Savings and Loan

Insurance Corporation''.

1988 - Subsec. (a)(4)(A)(i). Pub. L. 100-242, Sec. 443(b), struck

out ''through March 15, 1988,'' before ''residential mortgages''.

Subsec. (a)(4)(A)(ii). Pub. L. 100-628 struck out ''until October

1, 1985,'' before ''residential mortgages''.

Subsec. (c). Pub. L. 100-242, Sec. 445, added subsec. (c).

1987 - Subsec. (a)(4)(A)(i). Pub. L. 100-200 substituted ''March

15, 1988'' for ''December 16, 1987''.

Pub. L. 100-179 substituted ''December 16, 1987'' for ''December

2, 1987''.

Pub. L. 100-170 substituted ''December 2, 1987'' for ''November

15, 1987''.

Pub. L. 100-154 substituted ''November 15, 1987'' for ''October

31, 1987''.

Pub. L. 100-122 substituted ''through October 31, 1987'' for

''until October 1, 1987''.

1984 - Subsec. (a)(2). Pub. L. 98-440, Sec. 205(b), which

directed insertion of ''secured by a property comprising one- to

four-family dwelling units'' after ''mortgages'' where first

appearing in first sentence was executed by inserting that phrase

after ''No conventional mortgage'' as the probable intent of

Congress.

Pub. L. 98-440, Sec. 201(b), substituted ''The Corporation shall

establish limitations governing the maximum original principal

obligation of conventional mortgages that are purchased by it; in

any case in which the Corporation purchases a participation

interest in such a mortgage, the limitation shall be calculated

with respect to the total original principal obligation of the

mortgage and not merely with respect to the interest purchased by

the Corporation'' for ''The Corporation shall establish limitations

governing the maximum principal obligation of conventional

mortgages purchased by it''.

Pub. L. 98-440, Sec. 206(b), inserted provision that the

limitations set forth in section 1713(c)(3) of this title may be

increased by the Corporation (taking into account construction

costs) to not to exceed 240 per centum of such dollar amounts in

any geographical area for which the Secretary of Housing and Urban

Development determines under such section that cost levels required

any increase in the dollar amount limitations under such section.

Subsec. (a)(4). Pub. L. 98-440, Sec. 203(b)(2), added par. (4).

1981 - Subsec. (a)(1). Pub. L. 97-110, Sec. 203, added the

Federal Deposit Insurance Corporation and the National Credit Union

Administration to the enumeration of agencies from which the

Federal Home Loan Mortgage Corporation is authorized to purchase

residential mortgages.

Subsec. (a)(2). Pub. L. 97-110, Sec. 202(a), substituted

provisions authorizing the Corporation to purchase a conventional

mortgage which was originated more than one year prior to the

purchase date only if the seller is the Federal Deposit Insurance

Corporation, the Federal Savings and Loan Insurance Corporation,

the National Credit Union Administration, or any other seller

currently engaged in mortgage lending or investing activities for

provisions which had authorized the Corporation to purchase a

conventional mortgage which was originated more than one year prior

to the purchase date only if the seller was currently engaged in

mortgage lending or investing activities and if, as a result

thereof, the cumulative aggregate of the principal balances of all

conventional mortgages purchased by the Corporation which were

originated more than one year prior to the date of purchases did

not exceed 20 per centum of the cumulative aggregate of the

principal balances of all conventional mortgages purchased by the

Corporation.

Pub. L. 97-110, Sec. 202(b)(1), inserted provision that, with

respect to any transaction in which a seller contemporaneously

sells mortgages originated more than one year old prior to the date

of sale to the Corporation and receives in payment for such

mortgages securities representing undivided interests only in those

mortgages, the Corporation shall not impose any fee or charge upon

an eligible seller which is not a member of a Federal Home Loan

Bank which differs from that imposed upon an eligible seller which

is such a member.

Subsec. (b). Pub. L. 97-110, Sec. 203, added the Federal Deposit

Insurance Corporation and the National Credit Union Administration

to the enumeration of agencies having the authority to enter into

and to perform and carry out transactions and matters referred to

in this section.

1980 - Subsec. (a)(1). Pub. L. 96-294 inserted provisions

relating to public utilities carrying out activities in accordance

with the requirements of title II of the National Energy

Conservation Policy Act.

Subsec. (a)(2). Pub. L. 96-399 inserted provisions setting forth

limitations respecting mortgages secured by a single-family

residence, etc., and struck out provisions making the limitations

set forth in first proviso of first sentence of section 1464(c) of

this title.

1978 - Subsec. (a)(1). Pub. L. 95-557 inserted reference to any

mortgagee approved by the Secretary of Housing and Urban

Development at end of first sentence, and inserted last five

sentences relating to imposition of charges or fees for different

classes of sellers or servicers, etc.

1977 - Subsec. (a)(2). Pub. L. 95-128 inserted ''by more than 25

per centum'' after ''exceed'' in last sentence.

1974 - Subsec. (a)(1). Pub. L. 93-495 inserted provisions

relating to State insurance of deposits or accounts in financial

institutions.

Pub. L. 93-383, Sec. 805(a), substituted ''. The Corporation may

hold'' for '', and to hold'' and inserted provisions relating to

the servicing of any such mortgage by the seller or qualified

financial institution.

Subsec. (a)(2). Pub. L. 93-383, Sec. 805(b), substituted ''80''

for ''75'' in two places and ''not exceed 20'' for ''not exceed

10'', struck out ''private'' before ''insurer'' in cl. (C), and

substituted provisions relating to limitations contained in first

proviso of first sentence of section 1464(c) of this title, for

provisions relating to limitations applicable if the mortgage were

insured by the Secretary under section 1709(b) or 1713 of this

title.

EFFECTIVE DATE OF 1998 AMENDMENTS

Pub. L. 105-277, div. A, Sec. 122, Oct. 21, 1998, 112 Stat.

2681-546, provided that the amendment made by section 122 is

effective upon enactment of Pub. L. 105-276 (Oct. 21, 1998).

Amendment by title V of Pub. L. 105-276 effective and applicable

beginning upon Oct. 1, 1999, except as otherwise provided, with

provision that Secretary may implement amendment before such date,

except to extent that such amendment provides otherwise, and with

savings provision, see section 503 of Pub. L. 105-276, set out as a

note under section 1437 of Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 202(b)(2) of Pub. L. 97-110 provided that: ''The

amendment made by paragraph (1) (amending this section) shall take

effect on January 1, 1982, and shall apply to commitments entered

into on or after such date.''

EFFECTIVE DATE OF 1978 AMENDMENT

Section 321(c) of Pub. L. 95-557 provided: ''The amendments made

by this section (amending this section) shall become effective at

the end of the two hundred and ten calendar days after enactment of

this Act (Oct. 31, 1978), but not before January 31, 1979, or on

such earlier date as the Federal Home Loan Mortgage Corporation may

prescribe.''

SAVINGS PROVISION

Pub. L. 105-276, title V, Sec. 582(b), Oct. 21, 1998, 112 Stat.

2644, provided that: ''Except to the extent otherwise provided in

this Act (see Tables for classification), the repeals made by

subsection (a) (amending this section and section 1717 of this

title, repealing sections 1437a-1, 1437j-1, 1438, and 11903a of

Title 42, The Public Health and Welfare, amending provisions set

out as a note under section 1437f of Title 42, and repealing

provisions set out as notes under section 1701z-6 of this title and

sections 1437f, 1437g, and 1437t of Title 42) shall not affect any

legally binding obligations entered into before the effective date

under section 503(a) of this Act (set out as a note under section

1437 of Title 42).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 24, 1431, 1436, 1441,

1452, 1455, 1464, 1709, 1757, 4542, 4902 of this title.

-CITE-

12 USC Sec. 1455 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1455. Obligations and securities of the Corporation

-STATUTE-

(a) Authority to issue; terms and conditions; validity

The Corporation is authorized, upon such terms and conditions as

it may prescribe, to borrow, to give security, to pay interest or

other return, and to issue notes, debentures, bonds, or other

obligations, or other securities, including without limitation

mortgage-backed securities guaranteed by the Government National

Mortgage Association in the manner provided in section 1721(g) of

this title. Any obligation or security of the Corporation shall be

valid and binding notwithstanding that a person or persons

purporting to have executed or attested the same may have died,

become under disability, or ceased to hold office or employment

before the issuance thereof.

(b) Prohibitions and restrictions; creation of liens and charges;

rank and priority; causes of action to enforce; jurisdiction;

service of process

The Corporation may, by regulation or by writing executed by the

Corporation, establish prohibitions or restrictions upon the

creation of indebtedness or obligations of the Corporation or of

liens or charges upon property of the Corporation, including

after-acquired property, and create liens and charges, which may be

floating liens or charges, upon all or any part or parts of the

property of the Corporation, including after-acquired property.

Such prohibitions, restrictions, liens, and charges shall have such

effect, including without limitation on the generality of the

foregoing such rank and priority, as may be provided by regulations

of the Corporation or by writings executed by the Corporation, and

shall create causes of action which may be enforced by action in

the United States District Court for the District of Columbia or in

the United States district court for any judicial district in which

any of the property affected is located. Process in any such

action may run to and be served in any judicial district or any

place subject to the jurisdiction of the United States.

(c) Purchase of obligations; funds, maximum amount of purchases,

etc.

(1) The Secretary of the Treasury may purchase any obligations

issued under subsection (a) of this section. For such purpose, the

Secretary may use as a public debt transaction the proceeds of the

sale of any securities issued under chapter 31 of title 31, and the

purposes for which securities may be issued under such chapter are

extended to include such purpose.

(2) The Secretary of (FOOTNOTE 1) Treasury shall not at any time

purchase any obligations under this subsection if the purchase

would increase the aggregate principal amount of the outstanding

holdings of obligations under this subsection by the Secretary to

an amount greater than $2,250,000,000.

(FOOTNOTE 1) So in original. Probably should be ''of the''.

(3) Each purchase of obligations by the Secretary of the Treasury

under this subsection shall be upon terms and conditions

established to yield a rate of return determined by the Secretary

to be appropriate, taking into consideration the current average

rate on outstanding marketable obligations of the United States as

of the last day of the month preceding the making of the purchase.

(4) The Secretary of the Treasury may at any time sell, upon

terms and conditions and at prices determined by the Secretary, any

of the obligations acquired by the Secretary under this subsection.

(5) All redemptions, purchases and sales by the Secretary of the

Treasury of obligations under this subsection shall be treated as

public debt transactions of the United States.

(d) Validity of provisions; validity of restrictions, prohibitions,

liens, or charges

The provisions of this section and of any restriction,

prohibition, lien, or charge referred to in subsection (b) of this

section shall be fully effective notwithstanding any other law,

including without limitation on the generality of the foregoing any

law of or relating to sovereign immunity or priority.

(e) Authority to purchase, hold, or invest by person, trust, or

organization

(1) Any person, trust, or organization created pursuant to or

existing under the laws of the United States or any State shall be

authorized to purchase, hold, and invest in mortgages, obligations,

or other securities which are or have been sold by the Corporation

pursuant to this section or pursuant to section 1454 of this title

to the same extent that such person, trust, or organization is

authorized under any applicable law to purchase, hold, or invest in

obligations issued by or guaranteed as to principal and interest by

the United States or any agency or instrumentality thereof. Where

State law limits the purchase, holding, or investment in

obligations issued by the United States by such a person, trust, or

organization, such Corporation mortgages, obligations, and other

securities shall be considered to be obligations issued by the

United States for purposes of the limitation.

(2) The provisions of paragraph (1) shall not apply with respect

to a particular person, trust, or organization or class thereof in

any State which, after December 21, 1979, enacts a statute which

specifically names the Corporation and either prohibits or provides

for a more limited authority to purchase, hold, or invest in such

securities by such person, trust, or organization or class thereof

than is provided in paragraph (1). The enactment by any State of

any statute of the type described in the preceding sentence shall

not affect the validity of any contractual commitment to purchase,

hold, or invest which was made prior thereto.

(3) Any authority granted by paragraph (1) and not granted by any

other Federal statute shall expire as of the end of June 30, 1985.

Such expiration shall not affect the validity of any contractual

commitment to purchase, hold, or invest which was made prior

thereto pursuant to paragraph (1), and shall not affect the

validity of any contractual commitment or other action to purchase,

hold, or invest pursuant to any other authorization.

(f) Preferred stock

The Corporation may have preferred stock on such terms and

conditions as the Board of Directors shall prescribe. Any

preferred stock shall not be entitled to vote with respect to the

election of any member of the Board of Directors.

(g) Securities exempt from regulation

All securities issued or guaranteed by the Corporation (other

than securities guaranteed by the Corporation that are backed by

mortgages not purchased by the Corporation) shall, to the same

extent as securities that are direct obligations of or obligations

guaranteed as to principal or interest by the United States, be

deemed to be exempt securities within the meaning of the laws

administered by the Securities and Exchange Commission.

(h) Securities backed by mortgages not purchased by Corporation

(1) The Corporation may not guarantee mortgage-backed securities

or mortgage related payment securities backed by mortgages not

purchased by the Corporation.

(2) The Corporation shall insert appropriate language in all of

the obligations and securities of the Corporation issued under this

section and section 1454 of this title clearly indicating that such

obligations and securities, together with the interest thereon, are

not guaranteed by the United States and do not constitute a debt or

obligation of the United States or any agency or instrumentality

thereof other than the Corporation.

(i) Prohibition on assessment or collection of fee or charge by

United States

Except for fees paid pursuant to sections 1452(c) (FOOTNOTE 2)

and 1455(c) (FOOTNOTE 2) of this title and assessments pursuant to

section 4516 (FOOTNOTE 2) of this title, no fee or charge may be

assessed or collected by the United States (including any executive

department, agency, or independent establishment of the United

States) on or with regard to the purchase, acquisition, sale,

pledge, issuance, guarantee, or redemption of any mortgage, asset,

obligation, or other security by the Corporation. No provision of

this subsection shall affect the purchase of any obligation by any

Federal home loan bank pursuant to section 1452(a) of this title.

(FOOTNOTE 2) See References in Text note below.

(j) Notes, debentures, or substantially identical types of

unsecured obligations; issuance, maturities, interest rates,

etc.

(1) Any notes, debentures, or substantially identical types of

unsecured obligations of the Corporation evidencing money borrowed,

whether general or subordinated, shall be issued upon the approval

of the Secretary of the Treasury and shall have such maturities and

bear such rate or rates of interest as may be determined by the

Corporation with the approval of the Secretary of the Treasury.

(2) Any notes, debentures, of (FOOTNOTE 3) substantially

identical types of unsecured obligations of the Corporation having

maturities of 1 year or less that the Corporation has issued or is

issuing as of August 9, 1989, shall be deemed to have been approved

by the Secretary of the Treasury as required by this subsection.

Such deemed approval shall expire 365 days after August 9, 1989.

(FOOTNOTE 3) So in original. Probably should be ''or''.

(3) Any notes, debentures, or substantially identical types of

unsecured obligations of the Corporation having maturities of more

than 1 year that the Corporation has issued or is issuing as of

August 9, 1989, shall be deemed to have been approved by the

Secretary of the Treasury as required by this subsection. Such

deemed approval shall expire 60 days after August 9, 1989.

(k) Securities in form of debt obligations or trust certificates of

beneficial interest; issuance, maturities, interest rates, etc.

(1) Any securities in the form of debt obligations or trust

certificates of beneficial interest, or both, and based upon

mortgages held and set aside by the Corporation, shall be issued

upon the approval of the Secretary of the Treasury and shall have

such maturities and shall bear such rate or rates of interest as

may be determined by the Corporation with the approval of the

Secretary of the Treasury.

(2) Any securities in the form of debt obligations or trust

certificates of beneficial interest, or both, and based upon

mortgages held and set aside by the Corporation, that the

Corporation has issued or is issuing as of August 9, 1989, shall be

deemed to have been approved by the Secretary of the Treasury as

required by this subsection.

-SOURCE-

(Pub. L. 91-351, title III, Sec. 306, July 24, 1970, 84 Stat. 455;

Pub. L. 96-153, title III, Sec. 316(a), Dec. 21, 1979, 93 Stat.

1118; Pub. L. 97-289, Sec. 6, Oct. 6, 1982, 96 Stat. 1232; Pub. L.

98-35, Sec. 5, May 26, 1983, 97 Stat. 198; Pub. L. 98-440, title

II, Sec. 210, 211, Oct. 3, 1984, 98 Stat. 1697; Pub. L. 100-242,

title IV, Sec. 441(b), Feb. 5, 1988, 101 Stat. 1921; Pub. L.

101-73, title VII, Sec. 731(g)-(i), Aug. 9, 1989, 103 Stat. 434;

Pub. L. 102-550, title XIII, Sec. 1382(n), Oct. 28, 1992, 106 Stat.

4005.)

-REFTEXT-

REFERENCES IN TEXT

Section 1452(c) of this title, referred to in subsec. (i), was

redesignated section 1452(d) of this title by Pub. L. 101-73, title

VII, Sec. 731(c)(1), Aug. 9, 1989, 103 Stat. 431.

Section 1455(c) of this title, referred to in subsec. (i), was in

the original a reference to section ''1316(c) of this Act'', and

was translated as meaning a reference to section 306(c) of Pub. L.

91-351, which is classified to subsec. (c) of this section, to

reflect the probable intent of Congress. Pub. L. 91-351 does not

contain a section 1316.

Section 4516 of this title, referred to in subsec. (i), was in

the original ''section 106 of the Federal Housing Enterprises

Financial Safety and Soundness Act of 1992'', and was translated as

meaning section 1316 of that Act, which is classified to section

4516 of this title, to reflect the probable intent of Congress. The

Federal Housing Enterprises Financial Safety and Soundness Act of

1992 does not contain a section 106.

-MISC2-

AMENDMENTS

1992 - Subsec. (h). Pub. L. 102-550, Sec. 1382(n)(1), designated

existing provisions as par. (1) and added par. (2).

Subsec. (i). Pub. L. 102-550, Sec. 1382(n)(2), substituted

''sections 1452(c) and 1455(c) of this title and assessments

pursuant to section 4516 of this title'' for ''section 1452(c) or

1455(c) of this title''.

1989 - Subsec. (c). Pub. L. 101-73, Sec. 731(g), amended subsec.

(c) generally. Prior to amendment, subsec. (c) read as follows:

''The Federal home loan banks shall, to such extent as the Board of

Directors may prescribe, guarantee the faithful and timely

performance by the Corporation of any obligation or undertaking of

the Corporation on or with respect to any security (which term as

used in this sentence shall not include the capital stock referred

to in section 1453 of this title).''

Subsec. (f). Pub. L. 101-73, Sec. 731(h), amended subsec. (f)

generally. Prior to amendment, subsec. (f) read as follows: ''The

Corporation may have preferred stock on such terms and conditions

as the Board of Directors shall prescribe. Any preferred stock

shall not affect the status of the capital stock issued under

section 1453 of this title as nonvoting common stock, and shall not

be entitled to vote with respect to the election of any member of

the Board of Directors. Such preferred stock, or any class thereof,

may have such terms as would be required for listing of preferred

stock on the New York Stock Exchange, except that this sentence

does not apply to any preferred stock, or class thereof, the

initial sale of which is made directly or indirectly by the

Corporation exclusively to any Federal Home Loan Bank or Banks.''

Subsecs. (j), (k). Pub. L. 101-73, Sec. 731(i), added subsecs.

(j) and (k).

1988 - Subsec. (i). Pub. L. 100-242 added subsec. (i).

1984 - Subsec. (f). Pub. L. 98-440, Sec. 211, inserted provisions

that preferred stock shall not be entitled to vote with respect to

the election of any member of the Board of Directors and that such

preferred stock, or any class thereof, may have such terms as would

be required for listing of preferred stock on the New York Stock

Exchange, except for any preferred stock, or class thereof, the

initial sale of which is made directly or indirectly by the

Corporation exclusively to any Federal Home Loan Bank or Banks.

Subsec. (h). Pub. L. 98-440, Sec. 210, added subsec. (h).

1983 - Subsec. (g). Pub. L. 98-35 added subsec. (g).

1982 - Subsec. (f). Pub. L. 97-289 added subsec. (f).

1979 - Subsec. (e). Pub. L. 96-153 added subsec. (e).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 24, 1431, 1436, 1441,

1452, 1464, 1757 of this title.

-CITE-

12 USC Sec. 1456 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11A - FEDERAL HOME LOAN MORTGAGE CORPORATION

-HEAD-

Sec. 1456. Immunity of Corporation; audits and reporting

requirements; data collection; Housing Advisory Council

-STATUTE-

(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 characterist