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U.S. Code as of:
01/19/04
Section 4501. Congressional findings
The Congress finds that -
(1) the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation (referred to in this section
collectively as the "enterprises"), and the Federal Home Loan
Banks (referred to in this section as the "Banks"), have
important public missions that are reflected in the statutes and
charter Acts establishing the Banks and the enterprises;
(2) because the continued ability of the Federal National
Mortgage Association and the Federal Home Loan Mortgage
Corporation to accomplish their public missions is important to
providing housing in the United States and the health of the
Nation's economy, more effective Federal regulation is needed to
reduce the risk of failure of the enterprises;
(3) considering the current operating procedures of the Federal
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, and the Federal Home Loan Banks, the enterprises and
the Banks currently pose low financial risk of insolvency;
(4) neither the enterprises nor the Banks, nor any securities
or obligations issued by the enterprises or the Banks, are backed
by the full faith and credit of the United States;
(5) an entity regulating the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation should
have sufficient autonomy from the enterprises and special
interest groups;
(6) an entity regulating such enterprises should have the
authority to establish capital standards, require financial
disclosure, prescribe adequate standards for books and records
and other internal controls, conduct examinations when necessary,
and enforce compliance with the standards and rules that it
establishes;
(7) the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation have an affirmative obligation to
facilitate the financing of affordable housing for low- and
moderate-income families in a manner consistent with their
overall public purposes, while maintaining a strong financial
condition and a reasonable economic return; and
(8) the Federal Home Loan Bank Act [12 U.S.C. 1421 et seq.]
should be amended to emphasize that providing for financial
safety and soundness of the Federal Home Loan Banks is the
primary mission of the Federal Housing Finance Board.
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