§4566 Monitoring and enforcing compliance with housing goals

Summary

The Director must watch and enforce whether the enterprises meet the housing goals and their duty to serve underserved markets. The Director will make rules to measure compliance and can give full, partial, or no credit for different mortgage purchases. Each mortgage that qualifies can count toward every goal it meets, and the Director may count how many housing units a mortgage finances. The Director can give extra credit for mortgages that meet the goals and support housing with a licensed childcare center, but that extra credit cannot be used to raise any goal, subgoal, or target. If the Director preliminarily finds an enterprise has failed or likely will fail to meet a goal, the Director must give written notice explaining why. The enterprise has 30 days to send written information, which can be extended for up to 30 more days or shortened for good cause. After that period the Director will make a final decision, considering market and financial conditions, and will notify the enterprise and the Senate and House banking committees with reasons. If the Director finds failure and that meeting the goal was or is feasible, the Director can require a housing plan. The plan must be specific and feasible, cover the next calendar year (and fixes for the current year if needed), and allow monitoring. The enterprise must submit the plan within 45 days (extensions in writing allowed). The Director will approve or disapprove within 30 days (one 30-day extension allowed). If disapproved, the enterprise must send an acceptable amended plan within 15 days (or longer if the Director allows). If an enterprise refuses, submits an unacceptable plan, or fails to follow it, the Director may issue a cease and desist order (section 4581), impose civil money penalties (section 4585), and use other enforcement steps. For the housing goals in 4562(a) and 4563(a)(1), the Director may also use any appropriate enforcement or seek other actions.