REVISION OF HOUSING GOALS.

SEC. 1128. REVISION OF HOUSING GOALS.(a) Repeal.—Sections 1331 through 1334 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4561 through 4564) are hereby repealed.(b) Housing Goals.—The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by inserting before section 1335 the following:“SEC. 1331. ESTABLISHMENT OF HOUSING GOALS.“(a) In General.—The Director shall, by regulation, establish effective for 2010 and each year thereafter, annual housing goals, with respect to the mortgage purchases by the enterprises, as follows:“(1) Single-family housing goals.—Four single-family housing goals under section 1332.“(2) Multifamily special affordable housing goal.—One multifamily special affordable housing goal under section 1333.“(b) Timing.—The Director shall, by regulation, establish an annual deadline by which the Director shall establish the annual housing goals under this subpart for each year, taking into consideration the need for the enterprises to reasonably and sufficiently plan their operations and activities in advance, including operations and activities necessary to meet such annual goals.“(c) Transition.—The annual housing goals effective for 2008 pursuant to this subpart, as in effect before the enactment of the Federal Housing Finance Regulatory Reform Act of 2008, shall remain in effect for 2009, except that not later than the expiration of the 270-day period beginning on the date of the enactment of such Act, the Director shall review such goals applicable for 2009 to determine the feasibility of such goals given the market conditions current at such time and, after seeking public comment for a period not to exceed 30 days, may make appropriate adjustments consistent with such market conditions.“(d) Eliminating Interest Rate Disparities.—“(1) In general.—Upon request by the Director, an enterprise shall provide to the Director, in a form determined by the Director, data the Director may review to determine whether there exist disparities in interest rates charged on mortgages to borrowers who are minorities as compared with comparable mortgages to borrowers of similar creditworthiness who are not minorities.“(2) Remedial actions upon preliminary finding.—Upon a preliminary finding by the Director that a pattern of disparities in interest rates with respect to any lender or lenders 122 STAT. 2697 exists pursuant to the data provided by an enterprise in paragraph (1), the Director shall_“(A) refer the preliminary finding to the appropriate regulatory or enforcement agency for further review; and“(B) require the enterprise to submit additional data with respect to any lender or lenders, as appropriate and to the extent practicable, to the Director who shall submit any such additional data to the regulatory or enforcement agency for appropriate action.“(3) Annual report to congress.—The Director shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report describing the actions taken, and being taken, by the Director to carry out this subsection. No such report shall identify any lender or lenders who have not been found to have engaged in discriminatory lending practices pursuant to a final adjudication on the record, and after opportunity for an administrative hearing, in accordance with subchapter II of chapter 5 of title 5, United States Code.“(4) Protection of identity of individuals.—In carrying out this subsection, the Director shall ensure that no property-related or financial information that would enable a borrower to be identified shall be made public. “SEC. 1332. SINGLE-FAMILY HOUSING GOALS.“(a) In General.—The Director shall, by regulation, establish annual goals for the purchase by each enterprise of the following types of mortgages for the following categories of families:“(1) Purchase-money mortgages.—A goal for purchase of conventional, conforming, single-family, purchase money mortgages financing owner-occupied housing for each of the following categories of families:“(A) Low-income families.“(B) Families that reside in low-income areas.“(C) Very low-income families.“(2) Refinancing mortgages.—A goal for purchase of conventional, conforming mortgages on owner-occupied, single-family housing for low-income families that are given to pay off or prepay an existing loan secured by the same property.“(b) Goals as a Percentage of Total Mortgage Purchases.—The goals established under paragraphs (1) and (2) of subsection (a) shall be established as a percentage of the total number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by the enterprise, or as percentage of the total number of conventional, single-family, owner-occupied refinance mortgages purchased by the enterprise, as applicable, that are mortgages for the types of families specified in paragraphs (1) and (2) of subsection (a).“(c) Single-Family, Owner-Occupied Rental Housing Units.—The Director shall require each enterprise to report the number of rental housing units affordable to low-income families each year which are contained in mortgages purchased by the enterprise financing 2- to 4-unit single-family, owner-occupied properties and may, by regulation, establish additional requirements relating to such units.“(d) Determination of Compliance.—122 STAT. 2698“(1) In general.—The Director shall determine, for each year that the housing goals under this section are in effect pursuant to section 1331(a), whether each enterprise has complied with each such goal established under subsection (a) of this section and any additional requirements which may be established under subsection (c) of this section.“(2) Purchase-money mortgage goals.—An enterprise shall be considered to be in compliance with a housing goal under subparagraph (A), (B), or (C) of subsection (a)(1) for a year only if, for the type of family described in such subparagraph, the percentage of the number of conventional, conforming, single-family, owner-occupied, purchase money mortgages purchased by the enterprise in such year that serve such families, meets or exceeds the target for the year for such type of family that is established under subsection (e).“(3) Refinance goal.—An enterprise shall be considered to be in compliance with the refinance goal under subsection (a)(2) for a year only if the percentage of the number of conventional, conforming, single-family, owner-occupied refinance mortgages purchased by the enterprise in such year that serve low-income families meets or exceeds the target for the year that is established under subsection (e).“(e) Annual Targets.—“(1) In general.—The Director shall, by regulation, establish annual targets for each goal and subgoal under this section, provided that the Director shall not set prospective targets longer than three years. In establishing such targets, the Director shall not consider segments of the market determined to be unacceptable or contrary to good lending practices, inconsistent with safety and soundness, or unauthorized for purchase by the enterprises.“(2) Goals targets.—“(A) Calculation.—The Director shall calculate, for each of the types of families described in subsection (a), the percentage, for each of the three years that most recently precede such year and for which information under the Home Mortgage Disclosure Act of 1975 is publicly available—“(i) of the number of conventional, conforming, single-family, owner-occupied purchase money mortgages originated in such year that serve such type of family, or“(ii) the number of conventional, conforming, single-family, owner-occupied refinance mortgages originated in such year that serve low-income families, as applicable, as determined by the Director using the information obtained and determined pursuant to paragraphs (4) and (5).“(B) Establishment of goal targets.—The Director shall, by regulation, establish targets for each of the goal categories, taking into consideration the calculations under subparagraph (A) and the following factors:“(i) National housing needs.“(ii) Economic, housing, and demographic conditions, including expected market developments.122 STAT. 2699“(iii) The performance and effort of the enterprises toward achieving the housing goals under this section in previous years.“(iv) The ability of the enterprise to lead the industry in making mortgage credit available.“(v) Such other reliable mortgage data as may be available.“(vi) The size of the purchase money conventional mortgage market, or refinance conventional mortgage market, as applicable, serving each of the types of families described in subsection (a), relative to the size of the overall purchase money mortgage market or the overall refinance mortgage market, respectively.“(vii) The need to maintain the sound financial condition of the enterprises.“(3) Authority to adjust targets.—The Director may, by regulation, adjust the percentage targets previously established by regulation pursuant to paragraph (2)(B) for any year, to reflect subsequent available data and market developments.“(4) HMDA information.—The Director shall annually obtain information submitted in compliance with the Home Mortgage Disclosure Act of 1975 regarding conventional, conforming, single-family, owner-occupied, purchase money and refinance mortgages originated and purchased for the previous year.“(5) Conforming mortgages.—In determining whether a mortgage is a conforming mortgage for purposes of this paragraph, the Director shall consider the original principal balance of the mortgage loan to be the principal balance as reported in the information referred to in paragraph (4), as rounded to the nearest thousand dollars.“(f) Notice of Determination and Enterprise Comment.—“(1) Notice.—Within 30 days of making a determination under subsection (d) regarding compliance of an enterprise for a year with a housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the enterprise, which shall include an analysis and comparison, by the Director, of the performance of the enterprise for the year and the targets for the year under subsection (e).“(2) Comment period.—The Director shall provide each enterprise an opportunity to comment on the determination during the 30-day period beginning upon receipt by the enterprise of the notice.“(g) Use of Borrower Income.—In monitoring the performance of each enterprise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 1336), the Director shall consider a mortgagor’s income to be such income at the time of origination of the mortgage.“(h) Consideration of Properties With Rental Units.—Mortgages financing two- to four-unit owner-occupied properties shall count toward the achievement of the single-family housing goals under this section, if such properties otherwise meet the requirements under this section, notwithstanding the use of one or more units for rental purposes.“(i) Goals Credit.—The Director shall determine whether an enterprise shall receive full, partial, or no credit for a transaction 122 STAT. 2700 toward achievement of any of the housing goals established pursuant to section 1332 and 1333. In making any such determination, the Director shall consider whether a transaction or activity of an enterprise is substantially equivalent to a mortgage purchase and either (1) creates a new market, or (2) adds liquidity to an existing market. No credit toward the achievement of the housing goals and subgoals established under this section may be given to the purchase of mortgages, including any transaction or activity of an enterprise determined to be substantially equivalent to a mortgage purchase, that is determined to be unacceptable or contrary to good lending practices, inconsistent with safety and soundness, or unauthorized for purchase by the enterprises, pursuant to regulations issued by the Director.“SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE HOUSING GOAL.“(a) Establishment of Goal.—“(1) In general.—The Director shall, by regulation, establish a single annual goal, by either unit or dollar volume, of purchases by each enterprise of mortgages on multifamily housing that finance dwelling units affordable to low-income families.“(2) Additional requirements for units affordable to very low-income families.—When establishing the goal under this section, the Director shall establish additional requirements for the purchase by each enterprise of mortgages on multifamily housing that finance dwelling units affordable to very low-income families.“(3) Reporting on smaller properties.—The Director shall require each enterprise to report on the purchase by each enterprise of multifamily housing of a smaller or limited size that is affordable to low-income families, which may be based on multifamily projects of 5 to 50 units (as such numbers may be adjusted by the Director) or on mortgages of up to $5,000,000 (as such amount may be adjusted by the Director), and may, by regulation, establish such aditional requirements related to such units.“(4) Factors.—In establishing the goal and additional requirements under this section, the Director shall not consider segments of the market determined to be inconsistent with safety and soundness or unauthorized for purchase by the enterprises, and shall take into consideration—“(A) national multifamily mortgage credit needs and the ability of the enterprise to provide additional liquidity and stability for the multifamily mortgage market;“(B) the performance and effort of the enterprise in making mortgage credit available for multifamily housing in previous years;“(C) the size of the multifamily mortgage market for housing affordable to low-income and very low-income families, including the size of the multifamily markets for housing of a smaller or limited size;“(D) the ability of the enterprise to lead the market in making multifamily mortgage credit available, especially for multifamily housing described in paragraphs (1) and (2);“(E) the availability of public subsidies; and122 STAT. 2701“(F) the need to maintain the sound financial condition of the enterprise.“(b) Units Financed by Housing Finance Agency Bonds.—The Director shall give full credit toward the achievement of the multifamily special affordable housing goal under this section (for purposes of section 1336) to dwelling units in multifamily housing that otherwise qualifies under such goal and that is financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, if such bonds, in whole or in part—“(1) are secured by a guarantee of the enterprise; or“(2) are purchased by the enterprise, except that the Director may give less than full credit for purchases of investment grade bonds, to the extent that such purchases do not provide a new market or add liquidity to an existing market.“(c) Measurement of Performance.—The Director shall monitor the performance of each enterprise in meeting the goals established under this section and shall evaluate such performance (for purposes of section 1336) based on whether the rent levels are affordable. A rent level shall be considered to be affordable for purposes of this subsection for low-income families if it does not exceed 30 percent of the maximum income level of such income category, with appropriate adjustments for unit size as measured by the number of bedrooms.“(d) Determination of Compliance.—The Director shall determine, for each year that the housing goal under this section is in effect pursuant to section 1331(a), whether each enterprise has complied with such goal and the additional requirements under subsection (a)(2). “SEC. 1334. DISCRETIONARY ADJUSTMENT OF HOUSING GOALS.“(a) Authority.—An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal or subgoal for such year established pursuant to this subpart.“(b) Standard for Reduction.—The Director may reduce the level for a goal or subgoal pursuant to such a petition only if—“(1) market and economic conditions or the financial condition of the enterprise require such action; or“(2) efforts to meet the goal or subgoal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of this subpart, or section 301(3) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1716(3)) or section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 note), as applicable.“(c) Determination.—The Director shall, promptly upon receipt of a petition regarding a reduction, seek public comment on the reduction for a period of 30 days. The Director shall make a determination regarding any proposed reduction within 30 days after the expiration of such public comment period. The Director may extend such determination period for a single additional 15-day period, but only if the Director requests additional information from the enterprise.” .(c) Conforming Amendments.—The Housing and Community Development Act of 1992 is amended_(1) in section 1335(a) (12 U.S.C. 4565(a)), in the matter preceding paragraph (1), by striking “low- and moderate-income 122 STAT. 2702 housing goal” and all that follows through “section 1334” and inserting “housing goals established under this subpart”; and(2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), by striking “sections 1332, 1333, and 1334,” and inserting “this subpart”.(d) Definitions.—Section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502) is amended—(1) by striking paragraph (24), as so designated by section 1002 of this Act, and inserting the following:“(24) Very low-income.—“(A) In general.—The term ‘very low-income’ means—“(i) in the case of owner-occupied units, families having incomes not greater than 50 percent of the area median income; and“(ii) in the case of rental units, families having incomes not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.“(B) Rule of construction.—For purposes of section 1338 and 1339, the term ‘very low-income’ means—“(i) in the case of owner-occupied units, income in excess of 30 percent but not greater than 50 percent of the area median income; and“(ii) in the case of rental units, income in excess of 30 percent but not greater than 50 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.”; and(2) by adding at the end the following:“(26) Conforming mortgage.—The term ‘conforming mortgage’ means, with respect to an enterprise, a conventional mortgage having an original principal obligation that does not exceed the dollar amount limitation in effect at the time of such origination and applicable to such mortgage, under, as applicable—“(A) section 302(b)(2) of the Federal National Mortgage Association Charter Act; or“(B) section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.“(27) Extremely low-income.—The term ‘extremely low-income’ means—“(A) in the case of owner-occupied units, income not in excess of 30 percent of the area median income; and“(B) in the case of rental units, income not in excess of 30 percent of the area median income, with adjustments for smaller and larger families, as determined by the Director.“(28) Low-income area.—The term ‘low-income area’ means a census tract or block numbering area in which the median income does not exceed 80 percent of the median income for the area in which such census tract or block numbering area is located, and, for the purposes of section 1332(a)(1)(B), shall include families having incomes not greater than 100 percent of the area median income who reside in minority census tracts and shall include families having incomes not greater than 100 percent of the area median income who reside in designated disaster areas.122 STAT. 2703“(29) Minority census tract.—The term ‘minority census tract’ means a census tract that has a minority population of at least 30 percent and a median family income of less than 100 percent of the area family median income.“(30) Shortage of standard rental units both affordable and available to extremely low-income renter households.—“(A) In general.—The term ‘shortage of standard rental units both affordable and available to extremely low-income renter households’ means the gap between—“(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 30 percent of the adjusted area median income as determined by the Director that are occupied by extremely low-income renter households or are vacant for rent; and“(ii) the number of extremely low-income renter households.“(B) Rule of construction.—If the number of units described in subparagraph (A)(i) exceeds the number of extremely low-income households as described in subparagraph (A)(ii), there is no shortage.“(31) Shortage of standard rental units both affordable and available to very low-income renter households.—“(A) In general.—The term ‘shortage of standard rental units both affordable and available to very low-income renter households’ means the gap between—“(i) the number of units with complete plumbing and kitchen facilities with a rent that is 30 percent or less of 50 percent of the adjusted area median income as determined by the Director that are occupied by either extremely low- or very low-income renter households or are vacant for rent; and“(ii) the number of extremely low- and very low-income renter households.“(B) Rule of construction.—If the number of units described in subparagraph (A)(i) exceeds the number of extremely low- and very low-income households as described in subparagraph (A)(ii), there is no shortage.”.