[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR81.53]



[Page 456-457]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 81_THE SECRETARY OF HUD'S REGULATION OF THE FEDERAL NATIONAL 

MORTGAGE ASSOCIATION (FANNIE MAE) AND THE FEDERAL HOME LOAN MORTGAGE 

CORPORATION (FREDDIE MAC)--Table of Contents

 

                     Subpart D_New Program Approval

 

Sec.  81.53  Processing of program requests.



    (a) Each program request submitted to the Secretary by a GSE shall 

be in writing and shall be submitted to the Secretary and the Director, 

Office of Government-Sponsored Enterprises, Department of Housing and 

Urban Development, Washington, DC. For those requests submitted before 1 

year after the effective date of the regulations issued by the Director 

of OFHEO under 12 U.S.C. 4611(e), the GSE shall simultaneously submit 

the program request to the Director.

    (b) Each program request shall include:

    (1) An opinion from counsel stating the statutory authority for the 

new program (Freddie Mac Act section 305(a) (1), (4), or (5), or Fannie 

Mae Charter Act section 302(b)(2)-(5) or 304);

    (2) A good-faith estimate of the anticipated dollar volume of the 

program over the short- and long-term;

    (3) A full description of: (i) The purpose and operation of the 

proposed program;

    (ii) The market targeted by the program;

    (iii) The delivery system for the program;

    (iv) The effect of the program on the mortgage market; and

    (v) Material relevant to the public interest.

    (c) Following receipt of a program request, the Secretary and, where 

a program request is submitted to the Director pursuant to paragraph (a) 

of this section, the Director shall review the program request.

    (d) Transition standard for approval. Program requests submitted by 

the GSEs before the date occurring 1 year after the effective date of 

the regulations issued by the Director under 12 U.S.C. 4611(e) shall be 

approved or disapproved by the Secretary as provided in 12 U.S.C. 

4542(b)(2).

    (e) Permanent standard for approval by the Secretary. Program 

requests submitted after the date occurring one year after the effective 

date of the regulations issued by the Director under 12 U.S.C. 4611(e) 

establishing the risk-based capital test shall be approved by the 

Secretary in accordance with 12 U.S.C. 4542(b)(1).

    (f) Time for review. Unless the Secretary and, where appropriate, 

the Director of OFHEO, need additional information, a program request 

shall be approved or disapproved within 45 days from the date it is 

received by the Director, Office of Government-Sponsored Enterprises, 

and, where applicable, the Director of OFHEO. If within 45 days after 

receiving a request, the Secretary or the Director of OFHEO determine 

that additional information is necessary to review the matter and 

request such information from the GSE, the Secretary may extend the time 

period for consideration for an additional 15 days.

    (1) Where additional information is requested, the GSE must provide 

the requested information to the Secretary and, where appropriate, the 

Director,



[[Page 457]]



within 10 days after the request for additional information.

    (2) If the GSE fails to furnish requested information within 10 days 

after the request for information, the Secretary may deny the GSE's 

request for approval based on such failure and so report to the 

Committees of Congress in accordance with paragraph (g) of this section.

    (g) Approval or report. Within 45 days or, if the period is 

extended, 60 days following receipt of a program request, the Secretary 

shall approve the request, in writing, or submit a report to the 

Committee on Banking and Financial Services of the House of 

Representatives and the Committee on Banking, Housing, and Urban Affairs 

of the Senate, explaining the reasons for not approving the request. If 

the Secretary does not act within this time period, the GSE's program 

request will be deemed approved.