Delegation of Authority Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to the Assistant Secretary for Housing-Federal Housing Commissioner and the Deputy Assistant Secretary for Housing-Deputy Federal Housing Commissioner

SUMMARY: This notice delegates to the Assistant Secretary for Housing-

Federal Housing Commissioner and the General Deputy Assistant Secretary

for Housing-Deputy Federal Housing Commissioner certain of the

Secretary's powers and authorities under the Federal Housing

Enterprises Financial Safety and Soundness Act of 1992.

EFFECTIVE DATE: February 5, 1999.

FOR FURTHER INFORMATION CONTACT: Janet A. Tasker, Acting Director,

Government Sponsored Enterprise Staff, Room 6154, telephone (202) 708-

2224; or for legal questions, contact Kenneth Markison, Assistant

General Counsel for GSE/RESPA, Room 9262, telephone (202) 708-3137

(these are not toll-free numbers). The address for both persons is

Department of Housing and Urban Development, 451 Seventh Street, S.W.,

Washington, D.C. 20410. For hearing-and speech-impaired persons, the

telephone numbers may be accessed via TTY (text telephone) by calling

the Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Under the Federal Housing Enterprises

Financial Safety and Soundness Act of 1992 (FHEFSSA) (12 USC 4501 et

seq.), the Secretary of Housing and Urban Development has general and

specific regulatory authorities respecting the Federal National

Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage

Corporation (Freddie Mac) (collectively, the Government-Sponsored

Enterprises or GSEs). FHEFSSA's purpose is to establish a regulatory

framework for the GSEs that reflects their unique status as government-

sponsored enterprises that receive substantial public benefits. FHEFSSA

substantially overhauled the regulatory authorities and structure for

GSE regulation.

Under FHEFSSA, the Secretary is responsible for establishing

housing goals for the GSEs' purchases of mortgages financing: housing

for low-and moderate-income families; housing located in central

cities, rural areas, and other underserved areas; and special

affordable housing to meet the unaddressed needs of low-income families

in low-income areas and very low-income families. In addition, FHEFSSA

mandates that the Secretary: prohibit the GSEs from discriminating in

their mortgage purchases; require the GSEs to submit data to assist

investigations of mortgage lenders under the Fair Housing Act and the

Equal Credit Opportunity Act (ECOA); obtain information on Fair Housing

Act and ECOA violations and provide such information to the GSEs;

direct the GSEs to take remedial actions against lenders with

discriminatory lending practices; and periodically review and comment

on the GSEs' underwriting and appraisal guidelines to ensure that the

guidelines are consistent with FHEFSSA and the Fair Housing Act.

FHEFSSA also sets forth requirements for the Secretary's review and

approval of the GSEs' new programs, for GSE submission of mortgage

purchase data and reports to the Secretary, for the Secretary's

dissemination of data and protection of proprietary information, and

for enforcement and other proceedings. The Secretary implemented these

responsibilities in a regulation codified at 24 CFR part 81.

This notice delegates certain specified powers and authorities of

the Secretary under FHEFSSA to the Assistant Secretary for Housing-

Federal Housing Commissioner. No previous delegation of this authority

has been published in the Federal Register. The authority delegated

under this notice does not, however, include the Secretary's general

regulatory power (except to the extent that it authorizes the issuance

of regulations), authority provided to Administrative Law Judges in 24

CFR part 81, or the authority to: determine whether data is

proprietary; issue orders providing that data is proprietary; submit

annual reports to Congress; or make certain income adjustments or

determinations. The authority delegated under this notice includes the

authority to issue rules and regulations under FHEFSSA, waive such

regulations, and take other appropriate actions, as specified, to

implement FHEFSSA. When taking actions involving the Office of Federal

Housing Enterprise Oversight (OFHEO), the delegatees shall consult with

the Secretary.

Accordingly, the Secretary hereby delegates the following:

Section A. Authority

1. With the exception of the income adjustments and determinations

under 12 U.S.C. 4502(8)(B), (9), (10)(B), and (19)(B), and the

authority and power provided to Administrative Law Judges under 24 CFR

81.82(b)(2) and (b)(3), 81.83(d)(3)-(4), and 81.84, the Secretary

delegates to the Assistant Secretary for Housing-Federal Housing

Commissioner and the General Deputy Assistant Secretary for Housing-

Deputy Federal Housing Commissioner all the power and authority with

respect to housing goal activities in 12 U.S.C. 4502 and 4561-88

including, but not limited to: monitoring the GSEs' performance under

the housing goals and enforcing compliance with the goals, including

determining whether a GSE has failed, or is likely to fail, to meet a

housing goal; providing written notices to the GSEs of failure or

substantial probability of failure to meet a goal; extending response

periods for the GSEs; requiring a housing plan; providing required

notices to Congress under the housing goal provisions; reviewing

housing plans; approving and disapproving housing plans; monitoring

compliance with housing plans; issuing cease-and-desist orders and

imposing civil money penalties; requesting the Attorney General to

bring actions; settling and depositing civil money penalties; and

making orders and agreements publicly available.

2. With the exception of the authority and power provided to

Administrative Law Judges under 24 CFR 81.46(e)(1), the Secretary

delegates to the Assistant Secretary for Housing-Federal Housing

Commissioner and the General Deputy Assistant Secretary for Housing-

Deputy Federal Housing Commissioner all the power and authority under

the Fair Housing provisions of FHEFSSA at 12 U.S.C. 4545 and under

regulations at 24 CFR part 81, subpart C, including, but not limited

to: prohibiting each GSE from discriminating in any manner in the

purchase of any mortgage because of race, color, religion, sex,

handicap, familial status, age, or national origin, including any

consideration of the age or location of the dwelling or the age of the

neighborhood or census tract where the dwelling is located in a manner

that has a discriminatory effect; requiring each GSE to submit data to

assist in investigating whether a mortgage lender with which a GSE does

business has failed to comply with the Fair Housing Act; requiring each

GSE to submit data to assist in investigating whether a mortgage lender

with which a GSE does business has failed to comply with the Equal

Credit Opportunity Act (ECOA) and to submit information to ECOA

enforcement agencies; obtaining information on Fair Housing Act and

[[Page 7407]]

ECOA violations and providing that to the GSEs; directing the GSEs to

take remedial actions against lenders with discriminatory lending

practices; reviewing and commenting on the GSEs' underwriting and

appraisal guidelines to ensure that such guidelines are consistent with

the Fair Housing Act and FHEFSSA; and requesting the Director of the

Office of Federal Housing Enterprise Oversight to bring actions under

12 U.S.C. 4631 and 12 U.S.C. 4636 to enforce violations of 12 U.S.C.

4545.

3. With the exception of the authority and power provided to

Administrative Law Judges under 24 CFR 81.82(b)(2) and (b)(3),

81.83(d)(3)-(4), and 81.84, the Secretary delegates to the Assistant

Secretary for Housing-Federal Housing Commissioner and the General

Deputy Assistant Secretary for Housing-Deputy Federal Housing

Commissioner all the power and authority with respect to prior approval

of new programs under 12 U.S.C. 4542 including, but not limited to:

requiring that GSEs submit information about a program and requiring

that GSEs submit new program requests under 24 CFR 81.52; approving and

disapproving new program requests; extending the period for new program

review.

4. With the exception of the authority and power provided to

Administrative Law Judges under 24 CFR 81.82(b)(2) and (b)(3),

81.83(d)(3)-(4), and 81.84, the Secretary delegates to the Assistant

Secretary for Housing-Federal Housing Commissioner and the General

Deputy Assistant Secretary for Housing--Deputy Federal Housing

Commissioner all the power and authority with respect to reporting

activities in 12 U.S.C. 1456(e)-(f), 1723a(m)-(n), and 4547, and under

24 CFR 81.102, including but not limited to: determining the form of

data submitted; requiring the submission of additional data

characteristics; requiring additional reports and other information

concerning GSE activities; requiring the GSEs to provide data

underlying any of the reports required under 24 CFR part 81 and to

conduct additional analyses concerning any report required under 24 CFR

part 81; and to independently verify the accuracy and completeness of

data, information, and reports provided by each GSE, including

conducting on-site verification when such steps are reasonably related

to: determining whether a GSE is complying with 12 U.S.C. 4541-4589 and

the GSEs' Charter Acts; establishing standards and procedures for and

imposing civil money penalties; requesting the Attorney General to

bring actions; settling and depositing civil money penalties; making

orders and agreements publicly available; ); and requesting the

Director of the Office of Federal Housing Enterprise Oversight to bring

actions under 12 U.S.C. 4631 and 12 U.S.C. 4636 to enforce violations

of 12 U.S.C. 1456(e)-(f), 1723a(m)-(n), and 4547, and 24 CFR 81.102.

5. The Secretary delegates to the Assistant Secretary for Housing--

Federal Housing Commissioner and the General Deputy Assistant Secretary

for Housing-Deputy Federal Housing Commissioner all the power and

authority with respect to access to information activities in 12 U.S.C.

4525, 4543, and 4546 including, but not limited to: recommending the

invocation of 5 U.S.C. 552(b)(4), (6), and (8); and not providing

public access to proprietary data.

6. The Secretary delegates to the Assistant Secretary for

Housing'Federal Housing Commissioner and the General Deputy Assistant

Secretary for Housing-Deputy Federal Housing Commissioner all the power

and authority with respect to book-entry procedure activities in 24 CFR

part 81, subpart H, including, but not limited to establishing certain

procedures for Federal Reserve Banks and waiving book-entry

regulations.

7. The Secretary delegates to the Assistant Secretary for Housing-

Federal Housing Commissioner and the General Deputy Assistant Secretary

for Housing-Deputy Federal Housing Commissioner all the power and

authority with respect to the Office of Federal Housing Enterprise

Oversight (OFHEO) activities in 12 U.S.C. 4513(c), 4516(g)(1)-(2), and

4548(b) including, but not limited to: reviewing and approving certain

actions of the OFHEO Director; and receiving and commenting to Congress

on OFHEO's financial plans, forecasts, and operations reports. When

taking action relating to OFHEO under this paragraph, the Assistant

Secretary for Housing--Federal Housing Commissioner and the General

Deputy Assistant Secretary for Housing-Deputy Federal Housing

Commissioner shall consult with the Secretary.

8. The Secretary delegates to the Assistant Secretary for Housing-

Federal Housing Commissioner and the General Deputy Assistant Secretary

for Housing-Deputy Federal Housing Commissioner all the power and

authority with respect to issuing regulations under the Federal Housing

Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501

et seq.) and waiving regulations promulgated under such Act.

9. The Secretary delegates to the Assistant Secretary for Housing--

Federal Housing Commissioner and the General Deputy Assistant Secretary

for Housing-Deputy Federal Housing Commissioner the power and authority

to take any appropriate action to implement the power and authority

delegated under this delegation.

Section B. Authority to Redelegate

The Assistant Secretary for Housing-Federal Housing Commissioner

and the General Deputy Assistant Secretary for Housing-Deputy Federal

Housing Commissioner may redelegate to employees of the Department any

of the power and authority delegated under this delegation.

Authority: Secs. 1302 and 1331-48 of the Federal Housing

Enterprises Financial Safety and Soundness Act of 1992, 12 U.S.C.

4502 and 4561-88; section 7(d), Department of Housing and Urban

Development Act, 42 U.S.C. 3535(d).

Dated: February 5, 1999.

Andrew Cuomo,

Secretary.

[FR Doc. 99-3465 Filed 2-11-99; 8:45 am]

BILLING CODE 4210-32-P