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Title 12, Banks and BankingRelease 119-110

§4624 Reviews of Enterprise Assets and Liabilities

Title 12 › CHAPTER 46 — GOVERNMENT SPONSORED ENTERPRISES › SUBCHAPTER II — REQUIRED CAPITAL LEVELS FOR REGULATED ENTITIES, SPECIAL ENFORCEMENT POWERS, AND REVIEWS OF ASSETS AND LIABILITIES › § 4624

Last updated Sep 22, 2026|Official source

Summary

The Director must make rules about what the enterprises can hold in their portfolios. The rules must keep holdings covered by enough capital and match the enterprises’ missions and safe operation. When making rules, the Director must consider the enterprises’ ability to support a liquid secondary market through securitization, how their holdings compare to the overall mortgage market, and the standards in section 4513b. The Director can temporarily change the rules for one or both enterprises during economic trouble or market disruption. The Director must watch each enterprise’s portfolio and can order an enterprise to sell or buy any asset, on terms the Director sets, if doing so fits the law’s purposes.

Full Legal Text

Title 12, §4624

Banks and Banking, Source: USLM XML via OLRC

(a)In general
The Director shall, by regulation, establish criteria governing the portfolio holdings of the enterprises, to ensure that the holdings are backed by sufficient capital and consistent with the mission and the safe and sound operations of the enterprises. In establishing such criteria, the Director shall consider the ability of the enterprises to provide a liquid secondary market through securitization activities, the portfolio holdings in relation to the overall mortgage market, and adherence to the standards specified in section 4513b of this title.
(b)Temporary adjustments
The Director may, by order, make temporary adjustments to the established standards for an enterprise or both enterprises, such as during times of economic distress or market disruption.
(c)Authority to require disposition or acquisition
The Director shall monitor the portfolio of each enterprise. Pursuant to subsection (a) and notwithstanding the capital classifications of the enterprises, the Director may, by order, require an enterprise, under such terms and conditions as the Director determines to be appropriate, to dispose of or acquire any asset, if the Director determines that such action is consistent with the purposes of this Act or any of the authorizing statutes.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (c), is Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3672, known as the Housing and Community Development Act of 1992. For complete classification of this Act to the Code, see

Short Title

of 1992 Amendment note set out under section 5301 of Title 42, The Public Health and Welfare, and Tables.

Statutory Notes and Related Subsidiaries

Regulations

Pub. L. 110–289, div. A, title I, § 1109(b), July 30, 2008, 122 Stat. 2675, provided that: “Not later than the expiration of the 180-day period beginning on the

Effective Date

of this Act [probably means date of enactment of Pub. L. 110–289, approved July 30, 2008], the Director [of the Federal Housing Finance Agency] shall issue

Regulations

pursuant to section 1369E(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 [12 U.S.C. 4624(a)] (as added by subsection (a) of this section) establishing the portfolio holdings standards under such section.”

Reference

Citations & Metadata

Citation

12 U.S.C. § 4624

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110