PRIA, Government Policy, Made Personal

Summary

State housing finance authorities and nonprofit housing groups may buy mortgage-related assets from the Resolution Trust Corporation or from banks and similar institutions where the FDIC is acting as conservator or receiver. This can include mortgage assets tied to trust businesses. Their purchase contracts are valid as written and do not need extra approvals, assignments, or consents, even if other federal or state laws would say otherwise. If they buy these assets, any net income from them must be used to finance, refinance, or repair low- and moderate-income housing inside the authority’s state or the nonprofit’s service area.

Title 12, §1441a–2

Banks and Banking, Source: USLM XML via OLRC

(a)Authorization

Notwithstanding any other provision of Federal or State law, a State housing finance authority or nonprofit entity may purchase mortgage-related assets from the Resolution Trust Corporation or from financial institutions with respect to which the Federal Deposit Insurance Corporation is acting as a conservator or receiver (including assets associated with any trust business), and any contract for such purchase shall be effective in accordance with its terms without any further approval, assignment, or consent with respect to that contract.

(b)Investment requirement

Any State housing finance authority or nonprofit entity which purchases mortgage-related assets pursuant to subsection (a) shall invest any net income attributable to the ownership of those assets in financing, refinancing, or rehabilitating low- and moderate-income housing within the jurisdiction of the State housing finance authority or within the geographical area served by the nonprofit entity.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Financial Institutions Reform, Recovery, and

Enforcement

Act of 1989, and not as part of the Federal Home Loan Bank Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Definitions The definitions in section 1441a–1 of this title apply to this section.

§1441a–2 Authorization for State Housing Finance Agencies and Nonprofit Entities to Purchase Mortgage-related Assets