DUTY TO SERVE UNDERSERVED MARKETS.

SEC. 1129. DUTY TO SERVE UNDERSERVED MARKETS.(a) Establishment and Evaluation of Performance.—Section 1335 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4565) is amended—(1) in the section heading, by inserting “duty to serve underserved markets and” before “other”;(2) by striking subsection (b);(3) in subsection (a)—(A) in the matter preceding paragraph (1), by inserting “and to carry out the duty under subsection (a) of this section” before “, each enterprise shall”;(B) in paragraph (3), by inserting “and” after the semicolon at the end;(C) in paragraph (4), by striking “; and” and inserting a period;(D) by striking paragraph (5); and122 STAT. 2704(E) by redesignating such subsection as subsection (b);(4) by inserting before subsection (b) (as so redesignated by paragraph (3)(E) of this subsection) the following new subsection:“(a) Duty to Serve Underserved Markets.—“(1) Duty.—To increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for underserved markets, each enterprise shall provide leadership to the market in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages for very low-, low-, and moderate-income families with respect to the following underserved markets:“(A) Manufactured housing.—The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families.“(B) Affordable housing preservation.—The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and moderate-income families, including housing projects subsidized under_“(i) the project-based and tenant-based rental assistance programs under section 8 of the United States Housing Act of 1937;“(ii) the program under section 236 of the National Housing Act;“(iii) the below-market interest rate mortgage program under section 221(d)(4) of the National Housing Act;“(iv) the supportive housing for the elderly program under section 202 of the Housing Act of 1959;“(v) the supportive housing program for persons with disabilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act;“(vi) the programs under title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.), but only permanent supportive housing projects subsidized under such programs;“(vii) the rural rental housing program under section 515 of the Housing Act of 1949;“(viii) the low-income housing tax credit under section 42 of the Internal Revenue Code of 1986; and“(ix) comparable state and local affordable housing programs.“(C) Rural markets.—The enterprise shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages on housing for very low-, and low-, and moderate-income families in rural areas.”; and(5) by adding at the end the following new subsections:“(c) Additional Categories.—The Director may submit recommendations to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate for the establishment of additional categories under subsection (a), provided that the Director makes 122 STAT. 2705 a preliminary determination that any such category is important to the mission of the enterprises, that the category is an underserved market, and that the establishment of such category is warranted.“(d) Evaluation and Reporting of Compliance.—“(1) In general.—The Director shall, by regulation, establish effective for 2010 and thereafter a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under subsection (a) to serve underserved markets and for rating the extent of such compliance. Using such method, the Director shall, for 2010 and each year thereafter, evaluate such compliance and rate the performance of each enterprise as to extent of compliance. The Director shall include such evaluation and rating for each enterprise for a year in the report for that year submitted pursuant to section 1319B(a).“(2) Separate evaluations.—In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director shall separately evaluate whether the enterprise has complied with such duty with respect to each of the underserved markets identified in subsection (a), taking into consideration_“(A) the development of loan products, more flexible underwriting guidelines, and other innovative approaches to providing financing to each of such underserved markets;“(B) the extent of outreach to qualified loan sellers and other market participants in each of such underserved markets;“(C) the volume of loans purchased in each of such underserved markets relative to the market opportunities available to the enterprise, except that the Director shall not establish specific quantitative targets nor evaluate the enterprises based solely on the volume of loans purchased; and“(D) the amount of investments and grants in projects which assist in meeting the needs of such underserved markets.“(3) Manufactured housing market.—In determining whether an enterprise has complied with the duty under subparagraph (A) of subsection (a)(1), the Director may consider loans secured by both real and personal property.“(4) Prohibition of consideration of affordable housing fund grants for meeting duty to serve.— In determining whether an enterprise has complied with the duty referred to in paragraph (1), the Director may not consider any affordable housing fund grant amounts used under section 1337 for eligible activities under subsection (g) of such section.”.(b) Enforcement.—Subsection (a) of section 1336 of the Housing and Community Development Act of 1992 (12 U.S.C. 4566(a)) is amended—(1) in paragraph (1), by inserting “and with the duty under section 1335(a) of each enterprise with respect to underserved markets,” before “as provided in this section”; and(2) by adding at the end of such subsection, as amended by the preceding provisions of this title, the following new paragraph:“(4) Enforcement of duty to provide mortgage credit to underserved markets.—The duty under section 1335(a) 122 STAT. 2706 of each enterprise to serve underserved markets (as determined in accordance with section 1335(c)) shall be enforceable under this section to the same extent and under the same provisions that the housing goals established under this subpart are enforceable. Such duty shall be enforceable only under this section, except that such duty shall not be subject to subsection (c)(7) of this section and shall not be enforceable under any other provision of this title (including subpart C of this part) or under any provision of the Federal National Mortgage Association Charter Act or the Federal Home Loan Mortgage Corporation Act.”.(c) Additional Credit for Certain Mortgages.—Section 1336(a) of the Housing and Community Development Act of 1992 (12 U.S.C. 4566(a)) is amended_(1) in paragraph (2), by inserting “, except as provided in paragraph (5),” after “which”; and(2) by adding at the end the following new paragraph:“(5) Additional credit.—The Director may assign additional credit toward achievement, under this section, of the housing goals for mortgage purchase activities of the enterprises that comply with the requirements of such goals and support housing that includes a licensed childcare center. The availability of additional credit under this paragraph shall not be used to increase any housing goal, subgoal, or target established under this subpart.”.