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12 USC § 4601 - Review of underwriting guidelines 

---
identifier: "/us/usc/t12/s4601"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 4601 - Review of underwriting guidelines"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "4601"
section_name: "Review of underwriting guidelines"
chapter_number: 46
chapter_name: "GOVERNMENT SPONSORED ENTERPRISES"
subchapter_number: "I"
subchapter_name: "SUPERVISION AND REGULATION OF ENTERPRISES"
part_number: "C"
part_name: "Miscellaneous Provisions"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 102–550, title XIII, § 1354, Oct. 28, 1992, 106 Stat. 3970.)"
---

# § 4601. Review of underwriting guidelines

**(a)** **Study** Each of the enterprises shall conduct a study to review the underwriting guidelines of the enterprise. The studies shall examine—

**(1)** the extent to which the underwriting guidelines prevent or inhibit the purchase or securitization of mortgages for housing located in mixed-use, urban center, and predominantly minority neighborhoods and for housing for low- and moderate-income families;

**(2)** the standards employed by private mortgage insurers and the extent to which such standards inhibit the purchase and securitization by the enterprises of mortgages described in paragraph (1); and

**(3)** the implications of implementing underwriting standards that—

**(A)** establish a downpayment requirement for mortgagors of 5 percent or less;

**(B)** allow the use of cash on hand as a source for downpayments; and

**(C)** approve borrowers who have a credit history of delinquencies if the borrower can demonstrate a satisfactory credit history for at least the 12-month period ending on the date of the application for the mortgage.

**(b)** **Report** October 28, 1992

Not later than the expiration of the 1-year period beginning on , each enterprise shall submit to the Secretary, the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate a report regarding the study conducted by the enterprise under subsection (a). Each report shall include any recommendations of the enterprise for better meeting the housing needs of low- and moderate-income families.

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**Source Credit**: (Pub. L. 102–550, title XIII, § 1354, Oct. 28, 1992, 106 Stat. 3970.)

## Statutory Notes and Related Subsidiaries

### Change of Name

Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by , set out as a note preceding , The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, .