12 U.S.C. § 4567 — Affordable housing allocations

(a) Set aside and allocation of amounts by enterprises. Subject to subsection (b), in each fiscal year—(1) the Federal Home Loan Mortgage Corporation must set aside 4.2 basis points for each dollar of the unpaid principal balance of all its new business purchases. It must then allocate or transfer 65 percent of that amount to the Secretary of Housing and Urban Development for the Housing Trust Fund under 12 U.S.C. § 4568, and 35 percent for the Capital Magnet Fund under 12 U.S.C. § 4569. (2) The Federal National Mortgage Association must do the same: set aside 4.2 basis points for each dollar of the unpaid principal balance of all its new business purchases, then allocate or transfer 65 percent for the Housing Trust Fund and 35 percent for the Capital Magnet Fund.

(b) Suspension of contributions. The Director^* must temporarily suspend an enterprise's allocations under subsection (a) if the Director finds that the allocations—(1) are contributing, or would contribute, to the enterprise's financial instability; (2) are causing, or would cause, the enterprise^* to be classified as undercapitalized; or (3) are preventing, or would prevent, the enterprise from successfully completing a capital restoration plan under 12 U.S.C. § 4622.

(c) Prohibition of pass-through of cost of allocations. By regulation, the Director must prohibit each enterprise from shifting the cost of an allocation required by this section to the originators of mortgages the enterprise purchases or securitizes. The enterprise may not do this through higher charges or fees, lower premiums, or any other method.

(d) Enforcement of requirements on enterprise. Compliance by the enterprises with this section may be enforced under subpart 3. References in that subpart to this part, or to an order, rule, or regulation under this part, specifically include this section and orders, rules, and regulations under this section.

(e) Required amount for HOPE reserve fund. Of the total amount allocated under subsection (a), 25 percent must be deposited into a Treasury fund established by the Secretary of the Treasury for that purpose.

(f) Limitation. No funds under this chapter may be used together with property taken by eminent domain unless eminent domain is used only for a public use. For this section, “public use” does not include economic development that primarily benefits a private entity. This section does not define “eminent domain.”