12 USC 1707: Definitions

12 USC 1707: Definitions Text contains those laws in effect on January 23, 2000

From Title 12-BANKS AND BANKINGCHAPTER 13-NATIONAL HOUSINGSUBCHAPTER II-MORTGAGE INSURANCE

Jump To: Source CreditAmendmentsMiscellaneous

§1707. Definitions

As used in section 1709 of this title-

(a) The term "mortgage" means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninety-nine years which is renewable or (2) under a lease having a period of not less than ten years to run beyond the maturity date of the mortgage; and the term "first mortgage" means such classes of first liens as are commonly given 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, together with the credit instruments, if any, secured thereby.

(b) The term "mortgagee" includes the original lender under a mortgage, and his successors and assigns approved by the Secretary; and the term "mortgagor" includes the original borrower under a mortgage and his successors and assigns.

(c) The term "maturity date" means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage.

(d) The term "State" includes the several States, and Puerto Rico, the District of Columbia, Guam, the Trust Territory of the Pacific Islands, American Samoa, and the Virgin Islands.

(e) The term "family member" means, with respect to a mortgagor under such section, a child, parent, or grandparent of the mortgagor (or the mortgagor's spouse). In determining whether any of the relationships referred to in the preceding sentence exist, a legally adopted son or daughter of an individual (and a child who is a member of an individual's household, if placed with such individual by an authorized placement agency for legal adoption by such individual), and a foster child of an individual, shall be treated as a child of such individual by blood.

(f) The term "child" means, with respect to a mortgagor under such section, a son, stepson, daughter, or stepdaughter of such mortgagor.

(June 27, 1934, ch. 847, title II, §201, 48 Stat. 1247 ; Feb. 3, 1938, ch. 13, §3, 52 Stat. 9 ; Mar. 28, 1941, ch. 31, §4(a), 55 Stat. 61 ; Apr. 20, 1950, ch. 94, title I, §122, 64 Stat. 59 ; July 14, 1952, ch. 723, §10(a)(2), 66 Stat. 603 ; Pub. L. 86–70, §10(a), June 25, 1959, 73 Stat. 142 ; Pub. L. 86–624, §6, July 12, 1960, 74 Stat. 411 ; Pub. L. 90–19, §1(a)(3), May 25, 1967, 81 Stat. 17 ; Pub. L. 91–152, title IV, §403(c)(1), Dec. 24, 1969, 83 Stat. 395 ; Pub. L. 96–399, title III, §306, Oct. 8, 1980, 94 Stat. 1640 ; Pub. L. 98–181, title IV, §407(b), Nov. 30, 1983, 97 Stat. 1211 ; Pub. L. 104–204, title IV, §425(b), Sept. 26, 1996, 110 Stat. 2928 .)

Amendments

1996-Subsecs. (e), (f). Pub. L. 104–204 added subsecs. (e) and (f).

1983-Subsec. (d). Pub. L. 98–181 inserted "American Samoa," after "Pacific Islands,".

1980-Subsec. (a). Pub. L. 96–399 substituted "ten years to run beyond the maturity date of the mortgage" for "fifty years to run from the date the mortgage was executed".

1969-Subsec. (d). Pub. L. 91–152 inserted "the Trust Territory of the Pacific Islands" after "Guam".

1967-Subsec. (b). Pub. L. 90–19 substituted "Secretary" for "Commissioner".

1960-Subsec. (d). Pub. L. 86–624 struck out "Hawaii," before "Puerto Rico".

1959-Subsec. (d). Pub. L. 86–70 struck out "Alaska," before "Hawaii".

1952-Subsec. (d). Act July 14, 1952, inserted "Guam," after "District of Columbia".

1950-Act Apr. 20, 1950, substituted "Commissioner" for "Administrator".

1941-Subsec. (a). Act Mar. 28, 1941, §4(a)(1), struck out "district, or Territory".

Subsec. (d). Act Mar. 28, 1941, §4(a)(2), added subsec. (d).

1938-Subsec. (a)(2). Act Feb. 3, 1938, struck out "upon which there is located a dwelling for not more than four families which is used in whole or in part for residential purposes, irrespective of whether such dwelling has a party wall or is otherwise physically connected with another dwelling" after "executed".

Subsec. (c). Act Feb. 3, 1938, added subsec. (c).

Termination of Trust Territory of the Pacific Islands

For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

Improvement of Financing for Multifamily Housing

Pub. L. 102–550, title V, subtitle C, Oct. 28, 1992, 106 Stat. 3794 , as amended by Pub. L. 103–233, title III, §307, Apr. 11, 1994, 108 Stat. 373 ; Pub. L. 104–120, §8, Mar. 28, 1996, 110 Stat. 836 ; Pub. L. 104–134, title I, §101(e) [title II, §205], Apr. 26, 1996, 110 Stat. 1321–257 , 1321-284; renumbered title I, Pub. L. 104–140, §1(a), May 2, 1996, 110 Stat. 1327 ; Pub. L. 105–18, title II, §10003, June 12, 1997, 111 Stat. 201 ; Pub. L. 105–276, title II, §211, Oct. 21, 1998, 112 Stat. 2486 ; Pub. L. 106–74, title II, §226, as added by Pub. L. 106–113, div. A, title I, §175(d), Nov. 29, 1999, 113 Stat. 1534 , provided that:

"SEC. 541. SHORT TITLE.

"This subtitle may be cited as the 'Multifamily Housing Finance Improvement Act'.

"SEC. 542. MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS.

"(a) In General.-The Secretary of Housing and Urban Development (hereinafter referred to as the 'Secretary') shall carry out programs through the Federal Housing Administration to demonstrate the effectiveness of providing new forms of Federal credit enhancement for multifamily loans. In carrying out demonstration programs, the Secretary shall include an evaluation of the effectiveness of entering into partnerships or other contractual arrangements including reinsurance and risk-sharing agreements with State or local housing finance agencies, the Federal Housing Finance Board, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, qualified financial institutions, and other State or local mortgage insurance companies or bank lending consortia.

"(b) Risk-Sharing Pilot Program.-

"(1) In general.-The Secretary shall carry out a pilot program in conjunction with qualified participating entities to determine the effectiveness of Federal credit enhancement for loans for affordable multifamily housing through a system of risk-sharing agreements with such entities.

"(2) Program requirements.-

"(A) In general.-In carrying out the pilot program under this subsection, the Secretary shall enter into risk-sharing agreements with qualified participating entities.

"(B) Mortgage insurance and reinsurance.-Agreements under subparagraph (A) may provide for (i) mortgage insurance through the Federal Housing Administration of loans for affordable multifamily housing originated by or through, or purchased by, qualified participating entities, and (ii) reinsurance, including reinsurance of pools of loans, on affordable multifamily housing. In entering into risk-sharing agreements under this subsection covering mortgages, the Secretary may give preference to mortgages that are not already in the portfolios of qualified participating entities.

"(C) Risk apportionment.-Agreements entered into under this subsection between the Secretary and a qualified participating entity shall specify the percentage of loss that each of the parties to the agreement will assume in the event of default of the insured or reinsured multifamily mortgage. Such agreements shall specify that the qualified participating entity and the Secretary shall share any loss in accordance with the risk-sharing agreement.

"(D) Reimbursement capacity.-Agreements entered into under this subsection between the Secretary and a qualified participating entity shall provide evidence acceptable to the Secretary of the capacity of such entity to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity which may be considered by the Secretary may include-

"(i) a pledge of the full faith and credit of a qualified participating entity to fulfill any obligations entered into by the entity;

"(ii) reserves pledged or otherwise restricted by the qualified participating entity in an amount equal to an agreed upon percentage of the loss assumed by the entity under subparagraph (C);

"(iii) funds pledged through a State or local guarantee fund; or

"(iv) any other form of evidence mutually agreed upon by the Secretary and the qualified participating entity.

"(E) Underwriting standards.-The Secretary shall allow any qualified participating entity to use its own underwriting standards and loan terms and conditions for purposes of underwriting loans to be insured under this subsection, except as provided in this section, without further review by the Secretary, except that the Secretary may impose additional underwriting criteria and loan terms and conditions for contractual agreements where the Secretary retains more than 50 percent of the risk of loss. Any financing permitted on property insured under this subsection other than the first mortgage shall be expressly subordinate to the insured mortgage.

"(F) Authority of secretary.-The Secretary, upon request of a qualified participating entity, may insure or reinsure and make commitments to insure or reinsure under this section any mortgage, advance, loan, or pool of mortgages otherwise eligible under this section, pursuant to a risk-sharing agreement providing that the qualified participating entity will carry out (under a delegation or otherwise, and with or without compensation, but subject to audit, exception, or review requirements) such credit approval, appraisal, inspection, issuance of commitments, approval of insurance of advances, cost certification, servicing, property disposition, or other functions as the Secretary shall approve as consistent with the purpose of this section. All appraisals of property for mortgage insurance under this section shall be completed by a Certified General Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice.

"(G) Disclosure of records.-Qualified participating entities shall make available to the Secretary or the Secretary's designee, at the Secretary's request, such financial and other records as the Secretary deems necessary for purposes of review and monitoring for the program under this section.

"(3) Development of alternatives.-The Secretary shall develop and assess a variety of risk-sharing alternatives, including arrangements under which the Secretary assumes an appropriate share of the risk related to long-term mortgage loans on newly constructed or acquired multifamily rental housing, mortgage refinancings, bridge financing for construction, and other forms of multifamily housing mortgage lending that the Secretary deems appropriate to carry out the purposes of this subsection. Such alternatives shall be designed-

"(A) to ensure that other parties bear a share of the risk, in percentage amount and in position of exposure, that is sufficient to create strong, market-oriented incentives for other participating parties to maintain sound underwriting and loan management practices;

"(B) to develop credit mechanisms, including sound underwriting criteria, processing methods, and credit enhancements, through which resources of the Federal Housing Administration can assist in increasing multifamily housing lending as needed to meet the expected need in the United States;

"(C) to provide a more adequate supply of mortgage credit for sound multifamily rental housing projects in underserved urban and rural markets;

"(D) to encourage major financial institutions to expand their participation in mortgage lending for sound multifamily housing, through means such as mitigating uncertainties regarding actions of the Federal Government (including the possible failure to renew short-term subsidy contracts);

"(E) to increase the efficiency, and lower the costs to the Federal Government, of processing and servicing multifamily housing mortgage loans insured by the Federal Housing Administration; and

"(F) to improve the quality and expertise of Federal Housing Administration staff and other resources, as required for sound management of reinsurance and other market-oriented forms of credit enhancement.

"(4) Eligibility standards.-The Secretary shall establish and enforce standards for eligibility under this subsection of qualified participating entities under this subsection, as the Secretary determines to be appropriate.

"(5) Funding.-Using any authority provided in appropriation Acts to insure loans under the National Housing Act [12 U.S.C. 1701 et seq.], the Secretary may enter into commitments under this subsection for risk sharing with respect to mortgages on not more than 7,500 units during fiscal year 1996. The demonstration authorized under this subsection shall not be expanded until the reports required under subsection (d) are submitted to Congress, and not more than an additional 25,000 units in each of the fiscal years 1999 and 2000.

"(6) Fees.-The Secretary shall establish and collect premiums and fees under this subsection as the Secretary determines appropriate to (A) achieve the purpose of this subsection, and (B) compensate the Federal Housing Administration for the risks assumed and related administrative costs.

"(7) Non-federal participation.-The Secretary shall carry out this subsection, to the maximum extent practicable, with the participation of well-established residential mortgage originators, financial institutions that invest in multifamily housing mortgages, multifamily housing sponsors, and such other private sector experts in multifamily housing finance as the Secretary determines to be appropriate.

"(8) Prohibition on ginnie mae securitization.-The Government National Mortgage Association shall not securitize any multifamily loans insured or reinsured under this subsection.

"(9) Qualification as affordable housing.-Multifamily housing securing loans insured or reinsured under this subsection shall qualify as affordable only if the housing is occupied by families and bears rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g) of the Internal Revenue Code of 1986 [26 U.S.C. 42(g)].

"(10) Certification of subsidy layering compliance.-The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 [42 U.S.C. 3545(d)] may be satisfied in connection with a commitment to insure a mortgage under this subsection by a certification by a housing credit agency (including an entity established by a State that provides mortgage insurance) to the Secretary that the combination of assistance within the jurisdiction of the Secretary and other government assistance provided in connection with a property for which a mortgage is to be insured shall not be any greater than is necessary to provide affordable housing.

"(11) Implementation.-The Secretary shall take any administrative actions necessary to initiate the pilot program under this subsection.

"(c) Housing Finance Agency Pilot Program.-

"(1) In general.-The Secretary shall carry out a specific pilot program in conjunction with qualified housing finance agencies (including entities established by States that provide mortgage insurance) to test the effectiveness of Federal credit enhancement for loans for affordable multifamily housing through a system of risk-sharing agreements with such agencies.

"(2) Pilot program requirements.-

"(A) In general.-In carrying out the pilot program authorized under this subsection, the Secretary shall enter into risk-sharing agreements with qualified housing finance agencies.

"(B) Mortgage insurance.-Agreements under subparagraph (A) shall provide for full mortgage insurance through the Federal Housing Administration of the loans for affordable multifamily housing originated by or through qualified housing finance agencies and for reimbursement to the Secretary by such agencies for either all or a portion of the losses incurred on the loans insured.

"(C) Risk apportionment.-Agreements entered into under this subsection between the Secretary and a qualified housing finance agency shall specify the percentage of loss that each of the parties to the agreement will assume in the event of default of the insured multifamily mortgage. Such agreements shall specify that the qualified housing finance agency and the Secretary shall share any loss in accordance with the risk-sharing agreement.

"(D) Reimbursement capacity.-Agreements entered into under this subsection between the Secretary and a qualified housing finance agency shall provide evidence of the capacity of such agency to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity may include-

"(i) a pledge of the full faith and credit of a qualified State or local agency to fulfill any obligations entered into by the qualified housing finance agency;

"(ii) reserves pledged or otherwise restricted by the qualified housing finance agency in an amount equal to an agreed upon percentage of the loss assumed by the housing finance agency under subparagraph (C);

"(iii) funds pledged through a State or local guarantee fund; or

"(iv) any other form of evidence mutually agreed upon by the Secretary and the qualified housing finance agency.

"(E) Underwriting standards.-The Secretary shall allow any qualified housing finance agency to use its own underwriting standards and loan terms and conditions for purposes of underwriting loans to be insured under this subsection without further review by the Secretary, except that the Secretary may impose additional underwriting criteria and loan terms and conditions for contractual agreements where the Secretary retains more than 50 percent of the risk of loss.

"(F) Disclosure of records.-Qualified housing finance agencies shall make available to the Secretary such financial and other records as the Secretary deems necessary for program review and monitoring purposes.

"(3) Mortgage insurance premiums.-The Secretary shall establish a schedule of insurance premium payments for mortgages insured under this subsection based on the percentage of loss the Secretary may assume. Such schedule shall reflect lower or nominal premiums for qualified housing finance agencies that assume a greater share of the risk apportioned according to paragraph (2)(C).

"(4) Limitation on insurance authority.-Using any authority provided by appropriations Acts to insure mortgages under the National Housing Act [12 U.S.C. 1701 et seq.], the Secretary may enter into commitments under this subsection with respect to mortgages on not more than 12,000 units during fiscal year 1996, not more than an additional 7,500 units during fiscal year 1997 and not more than an additional 25,000 units in each of fiscal years 1999 and 2000. The demonstration authorized under this subsection shall not be expanded until the reports required under subsection (d) are submitted to the Congress.

"(5) Identity of interest.-Notwithstanding any other provision of law, the Secretary shall not apply identity of interest provisions to agreements entered into with qualified State housing finance agencies under this subsection.

"(6) Prohibition on ginnie mae securitization.-The Government National Mortgage Association shall not securitize any multifamily loans insured under this subsection.

"(7) Qualification as affordable housing.-Multifamily housing securing loans insured under this subsection shall qualify as affordable only if the housing is occupied by families and bears rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g) of the Internal Revenue Code of 1986 [26 U.S.C. 42(g)].

"(8) Regulations.-Not later than 90 days after the date of enactment of this Act [Oct. 28, 1992], the Secretary shall issue such regulations as may be necessary to carry out this subsection.

"(9) Environmental and other reviews.-

"(A) Environmental reviews.-

"(i) In general.-(I) In order to assure that the policies of the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with the insurance of mortgages under subsection (c)(2), and to assure to the public undiminished protection of the environment, the Secretary may, under such regulations, in lieu of the environmental protection procedures otherwise applicable, provide for agreements to endorse for insurance mortgages under subsection (c)(2) upon the request of qualified housing finance agencies under this subsection, if the State or unit of general local government, as designated by the Secretary in accordance with regulations, assumes all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary may specify, that would otherwise apply to the Secretary with respect to the insurance of mortgages on particular properties.

"(II) The Secretary shall issue regulations to carry out this subparagraph only after consultation with the Council on Environmental Quality. Such regulations shall, among other matters, provide-

"(aa) for the monitoring of the performance of environmental reviews under this subparagraph;

"(bb) subject to the discretion of the Secretary, for the provision or facilitation of training for such performance; and

"(cc) subject to the discretion of the Secretary, for the suspension or termination by the Secretary of the qualified housing finance agency's responsibilities under subclause (I).

"(III) The Secretary's duty under subclause (II) shall not be construed to limit any responsibility assumed by a State or unit of general local government with respect to any particular property under subclause (I).

"(ii) Procedure.-The Secretary shall approve a mortgage for the provision of mortgage insurance subject to the procedures authorized by this paragraph only if, not less than 15 days prior to such approval, prior to any approval, commitment, or endorsement of mortgage insurance on the property on behalf of the Secretary, and prior to any commitment by the qualified housing finance agency to provide financing under the risk-sharing agreement with respect to the property, the qualified housing finance agency submits to the Secretary a request for such approval, accompanied by a certification of the State or unit of general local government that meets the requirements of clause (iii). The Secretary's approval of any such certification shall be deemed to satisfy the Secretary's responsibilities under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the provision of mortgage insurance on the property that is covered by such certification.

"(iii) Certification.-A certification under the procedures authorized by this paragraph shall-

"(I) be in a form acceptable to the Secretary;

"(II) be executed by the chief executive officer or other officer of the State or unit of general local government who qualifies under regulations of the Secretary;

"(III) specify that the State or unit of general local government under this section has fully carried out its responsibilities as described under clause (i); and

"(IV) specify that the certifying officer consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and under each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or such other provisions of law apply pursuant to clause (i), and is authorized and consents on behalf of the State or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official.

"(iv) Approval by states.-In cases in which a unit of general local government carries out the responsibilities described in clause (i), the Secretary may permit the State to perform those actions of the Secretary described in clause (ii) and the performance of such actions by the State, where permitted by the Secretary, shall be deemed to satisfy the Secretary's responsibilities referred to in the second sentence of clause (ii).

"(B) Lead-based paint poisoning prevention.-In carrying out the requirements of section 302 of the Lead-Based Paint Poisoning Prevention Act [42 U.S.C. 4822], the Secretary may provide by regulation for the assumption of all or part of the Secretary's duties under such Act [42 U.S.C. 4801 et seq.] by qualified housing finance agencies, for purposes of this section.

"(C) Certification of subsidy layering compliance.-The requirements of section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 [42 U.S.C. 3545(d)] may be satisfied in connection with a commitment to insure a mortgage under this subsection by a certification by a housing credit agency (including an entity established by a State that provides mortgage insurance) to the Secretary that the combination of assistance within the jurisdiction of the Secretary and other government assistance provided in connection with a property for which a mortgage is to be insured shall not be any greater than is necessary to provide affordable housing.

"(10) Definitions.-For purposes of this subsection, the following definitions shall apply:

"(A) Mortgage.-The term 'mortgage' means a first mortgage on real estate that is-

"(i) owned in fee simple; or

"(ii) subject to a leasehold interest that-

"(I) has a term of not less than 99 years and is renewable; or

"(II) has a remaining term that extends beyond the maturity of the mortgage for a period of not less than 10 years.

"(B) First mortgage.-The term 'first mortgage' means a single first lien given 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, together with the credit instrument, if any, secured thereby. Any other financing permitted on property insured under this section must be expressly subordinate to the insured mortgage.

"(C) Unit of general local government; state.-The terms 'unit of general local government' and 'State' have the same meanings as in section 102(a) of the Housing and Community Development Act of 1974 [42 U.S.C. 5302(a)].

"(d) Independent Studies and Reports.-

"(1) Federal national mortgage association.-The Federal National Mortgage Association, in consultation with representatives of its seller-servicers and State housing finance agencies, shall carry out an independent assessment of alternative methods for achieving the purposes of this section and shall submit a report containing any findings and recommendations, including any recommendations for legislative or administrative action, simultaneously to the Secretary and the Congress not later than 12 months after the date of the enactment of this Act [Oct. 28, 1992].

"(2) Federal home loan mortgage corporation.-The Federal Home Loan Mortgage Corporation, in consultation with representatives of its seller-servicers and State housing finance agencies, shall carry out an independent assessment of alternative methods for achieving the purposes of this section and shall submit a report containing any findings and recommendations, including any recommendations for legislative or administrative action, simultaneously to the Secretary and the Congress not later than 12 months after the date of the enactment of this Act [Oct. 28, 1992].

"(3) Secretary.-The Secretary shall submit to the Congress, and publish, reports under this paragraph assessing the activities carried out under each of the pilot programs. The Secretary shall submit and publish a preliminary report under this paragraph not later than 9 months after the date of the implementation of each of the pilot programs, and a final report not later than 24 months after the date of implementation on which the pilot program is initiated, which shall include any recommendations by the Secretary for legislative changes to achieve the purposes of this section.

"(4) Comptroller general.-The Comptroller General of the United States shall carry out an evaluation of each of the pilot programs under this section and shall submit to the Congress, not later than 30 months after the date of implementation for each of the pilot programs, a report regarding the evaluation, together with any recommendations for legislative changes to achieve the purposes of this section. The Comptroller General shall also submit to the Congress a report containing a preliminary assessment of the pilot program not later than 18 months after the date of enactment of this Act [Oct. 28, 1992].

"(5) Federal housing finance board.-The Federal Housing Finance Board shall monitor and assess the activities carried out under the pilot programs under this section. The Federal Housing Finance Board shall submit a preliminary report containing any findings regarding such activities not later than 9 months after the date of the enactment of this Act [Oct. 28, 1992], and a final report containing such findings not later than 24 months after the date on which the pilot program is initiated, which shall include any recommendations by the Board for legislative changes to achieve the purposes of this section.

"SEC. 543. NATIONAL INTERAGENCY TASK FORCE ON MULTIFAMILY HOUSING.

"(a) Purpose.-The purpose of this section is to establish a National Interagency Task Force on Multifamily Housing to develop recommendations for establishing a national database on multifamily housing loans.

"(b) Establishment of Task Force.-There is established a Task Force known as the National Interagency Task Force on Multifamily Housing (hereafter in this section referred to as the 'Task Force').

"(c) Membership of Task Force.-

"(1) Federal officials.-The Task Force shall be composed of-

"(A) the Secretary of Housing and Urban Development;

"(B) the Chairperson of the Federal Housing Finance Board;

"(C) the Comptroller of the Currency;

"(D) the Chairman of the Board of Governors of the Federal Reserve System;

"(E) the Director of the Office of Thrift Supervision;

"(F) the Chairperson of the Federal Deposit Insurance Corporation;

"(G) the Chairperson of the Federal National Mortgage Association; and

"(H) the Chairperson of the Federal Home Loan Mortgage Corporation,

or their designees, and the persons appointed under paragraphs (2) and (3).

"(2) Appointments by the secretary.-The Secretary shall appoint as members of the Task Force-

"(A) 1 individual who is a representative of a State housing finance agency;

"(B) 1 individual who is a representative of a local housing finance agency;

"(C) 1 individual who is a representative of the building industry with experience in multifamily housing; and

"(D) 1 individual who is a representative of the life insurance industry with experience in multifamily loan performance data.

"(3) Appointments by the chairperson of the fhfb.-The Chairman of the Federal Housing Finance Board shall appoint as members of the Task Force-

"(A) 1 individual who is a representative from the financial services industry with experience in multifamily housing underwriting;

"(B) 1 individual who is a representative from the nonprofit housing development sector with experience in subsidized multifamily housing development; and

"(C) 1 individual who is a representative from a nationally recognized rating agency.

"(d) Administration.-

"(1) Chairpersons.-The Task Force shall be chaired jointly by the Secretary and the Chairman of the Federal Housing Finance Board.

"(2) Meetings.-The Task Force shall meet no less than 4 times, at the call of the Chairpersons of the Task Force.

"(3) Quorum.-A majority of the members of the Task Force shall constitute a quorum for the transaction of business.

"(4) Voting.-Each member of the Task Force shall be entitled to 1 vote, which shall be equal to the vote of every other member of the Task Force.

"(5) Vacancies.-Any vacancy on the Task Force shall not affect its powers, but shall be filled in the manner in which the original appointment was made.

"(6) Prohibition on additional pay.-Members of the Task Force shall serve without compensation, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of their duties as members of the Task Force.

"(e) Functions of the Task Force.-

"(1) In general.-The Task Force shall conduct a multifamily housing financial data project in order to improve the availability and efficiency of financing for multifamily rental housing. The project shall-

"(A) analyze available data regarding the performance of multifamily housing mortgage loans in all regions of the country;

"(B) prepare a comprehensive national database on the operation and financing of multifamily housing that will provide reliable information appropriate to meet the projected needs of lenders, investors, sponsors, property managers, and public officials;

"(C) identify important factors that affect the long-term financial and operational soundness of multifamily housing properties, including factors relating to project credit risk, project underwriting, interest rate risk, real estate market conditions, public subsidies, tax policies, borrower characteristics, program management standards, and government policies;

"(D) develop common definitions, standards, and procedures that will improve multifamily housing underwriting and accelerate the development of a strong, competitive, and efficient secondary market for multifamily housing loans; and

"(E) make available appropriate information to various organizations in forms that will assist in improving multifamily housing loan underwriting and servicing.

"(2) Final report.-Not later than 1 year following the enactment of this Act [Oct. 28, 1992], the Task Force shall submit to the Congress a final report which shall contain the information, evaluations, and recommendations specified in paragraph (1).

"(f) Authority of Task Force.-

"(1) Rules and regulations.-The Task Force may adopt such rules and regulations as may be necessary to establish its procedures and to govern the manner of its operations, organization and personnel.

"(2) Access to data.-The members of the Task Force representing the Comptroller of the Currency, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Secretary of Housing and Urban Development, the Federal Housing Finance Board, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation shall make available to the Task Force a representative sample of multifamily housing mortgage loans in order for the Task Force to make its findings and recommendations, except that-

"(A) all information obtained shall be used only for the purposes authorized in this section;

"(B) the Task Force shall maintain the confidentiality of all such information obtained in the manner established for the material by the submitting entity, and such data shall not be subject to release under section 552 of title 5, United States Code;

"(C) only aggregate data shall be publicly released by the Task Force unless it receives the explicit permission of the mortgage originator or government-sponsored enterprise from which the information is obtained; and

"(D) any officer or employee of the Secretary, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, or the Federal Housing Finance Board shall be subject to the penalties under section 1906 of title 18, United States Code, if-

"(i) by virtue of employment or official position, the officer or employee has possession of or access to any book, record, or information made available under this subsection and established as confidential under subparagraph (C); and

"(ii) the officer or employee discloses the material in any manner other than to an officer or employee of the same Federal agency employing the officer or employee, or other than pursuant to the exemptions under section 1906.

"(3) Sample data.-In order to ensure a representative sample of multifamily housing data, the Department of Housing and Urban Development, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are authorized to request loan data from a representative sample of mortgage originators or the government-sponsored enterprises regulated by these agencies, and mortgages originated by housing finance agencies and life insurance companies, except that-

"(A) all information obtained shall be used only for the purposes authorized in this section;

"(4) Agency resources.-The Task Force may, with the consent of any Federal agency or department represented on the Task Force, utilize the information, services, staff and facilities of such agency or department on a reimbursable basis, to assist the Task Force in carrying out its duties under this section.

"(5) Mails.-The Task Force may use the United States mails in the same manner and under the same conditions as other Federal agencies.

"(6) Contracting.-The Task Force may, to such extent and in such amounts as are provided in appropriations Acts, enter into contracts with private firms, institutions, and individuals for the purpose of discharging its duties under this section.

"(7) Staff.-The Task Force may appoint and fix the compensation of such personnel as it deems advisable, in accordance with the provisions of title 5, United States Code, governing appointments to the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title, relating to classification of General Schedule pay rates.

"(g) Independent Evaluation.-The Comptroller General of the United States shall be authorized to conduct an independent analysis of the findings and recommendations submitted by the Task Force to the Congress under this section.

"(h) Authorization of Appropriations.-There are authorized to be appropriated to carry out this section not to exceed $6,000,000 for fiscal year 1993 and $6,252,000 for fiscal year 1994. Funds appropriated under this subsection shall remain available until expended.

"SEC. 544. DEFINITIONS.

"For purposes of this subtitle:

"(1) The term 'multifamily housing' means housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than 5 rental units on 1 site. These units may be detached, semidetached, row house, or multifamily structures.

"(2) The term 'qualified housing finance agency' means any State or local housing finance agency that-

"(A) carries the designation of 'top tier' or its equivalent, as evaluated by Standard and Poors or any other nationally recognized rating agency;

"(B) receives a rating of 'A' for its general obligation bonds from a nationally recognized rating agency; or

"(C) otherwise demonstrates its capacity as a sound and experienced agency based on, but not limited to, its experience in financing multifamily housing, fund balances, administrative capabilities, investment policy, internal controls and financial management, portfolio quality, and State or local support.

"(3) The term 'reinsurance agreement' means a contractual obligation under which the Secretary, in exchange for appropriate compensation, agrees to assume a specified portion of the risk of loss that a lender or other party has previously assumed with respect to a mortgage on a multifamily housing property.

"(4) The term 'Secretary' means the Secretary of Housing and Urban Development.

"(5) The term 'qualified participating entity' means an entity approved by the Secretary for participation in the pilot program under this subsection, which may include-

"(A) the Federal National Mortgage Association;

"(B) the Federal Home Loan Mortgage Corporation;

"(C) State housing finance and mortgage insurance agencies; and

"(D) the Federal Housing Finance Board."

[Amendment by Pub. L. 104–120 to subtitle C of title V of Pub. L. 102–550, set out above, to be construed to have become effective Oct. 1, 1995, see section 13(a) of Pub. L. 104–120, set out as an Effective Date of 1996 Amendment note under section 1437d of Title 42, The Public Health and Welfare.]

Section Referred to in Other Sections

This section is referred to in sections 1706c, 1709, 1715k, 1715l, 1715y, 1715z–1, 1715z–20, 1750 of this title.