---
kind: "section"
citation: "12 U.S.C. § 4541"
title: "12"
title_heading: "Banks and Banking"
number: "4541"
heading: "Prior approval authority for products"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4541"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter I — Supervision and Regulation of Enterprises"
  - "Part B — Additional Authorities of the Director"
  - "Subpart 1 — general authority"
---

# §4541. Prior approval authority for products

- (a) **In general—** The [Director](/usc/12/4502.md?p=9) shall require each [enterprise](/usc/12/4502.md?p=10) to obtain the approval of the [Director](/usc/12/4502.md?p=9) for any product of the [enterprise](/usc/12/4502.md?p=10) before initially offering the product.
- (b) **Standard for approval—** In considering any request for approval of a product pursuant to [subsection (a)](#a), the [Director](/usc/12/4502.md?p=9) shall make a determination that—
  - (1) in the case of a product of the Federal National [Mortgage](/usc/12/1707.md?p=a) Association, the product is authorized under paragraph [(2)](/usc/12/1717.md?p=b-2), [(3)](/usc/12/1717.md?p=b-3), [(4)](/usc/12/1717.md?p=b-4), or [(5)](/usc/12/1717.md?p=b-5) of section 1717(b) or [section 1719 of this title](/usc/12/1719.md);
  - (2) in the case of a product of the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) Corporation, the product is authorized under paragraph (1), (4), or (5) of [section 1454(a) of this title](/usc/12/1454.md?p=a);
  - (3) the product is in the public interest; and
  - (4) the product is consistent with the safety and soundness of the [enterprise](/usc/12/4502.md?p=10) or the [mortgage](/usc/12/1707.md?p=a) finance system.
- (c) **Procedure for approval—**
  - (1) **Submission of request—** An [enterprise](/usc/12/4502.md?p=10) shall submit to the [Director](/usc/12/4502.md?p=9) a written request for approval of a product that describes the product in such form as prescribed by order or regulation of the [Director](/usc/12/4502.md?p=9).
  - (2) **Request for public comment—** Immediately upon receipt of a request for approval of a product, as required under [paragraph (1)](#c-1), the [Director](/usc/12/4502.md?p=9) shall publish notice of such request and of the period for public comment pursuant to [paragraph (3)](#c-3) regarding the product, and a description of the product proposed by the request. The [Director](/usc/12/4502.md?p=9) shall give interested parties the opportunity to respond in writing to the proposed product.
  - (3) **Public comment period—** During the 30-day period beginning on the date of publication pursuant to [paragraph (2)](#c-2) of a request for approval of a product, the [Director](/usc/12/4502.md?p=9) shall receive public comments regarding the proposed product.
  - (4) **Offering of product—**
    - (A) **In general—** Not later than 30 days after the close of the public comment period described in [paragraph (3)](#c-3), the [Director](/usc/12/4502.md?p=9) shall approve or deny the product, specifying the grounds for such decision in writing.
    - (B) **Failure to act—** If the [Director](/usc/12/4502.md?p=9) fails to act within the 30-day period described in [subparagraph (A)](#c-4-A), then the [enterprise](/usc/12/4502.md?p=10) may offer the product.
    - (C) **Temporary approval—** The [Director](/usc/12/4502.md?p=9) may, subject to the rules of the [Director](/usc/12/4502.md?p=9), provide for temporary approval of the offering of a product without a public comment period, if the [Director](/usc/12/4502.md?p=9) finds that the existence of exigent circumstances makes such delay contrary to the public interest.
- (d) **Conditional approval—** If the [Director](/usc/12/4502.md?p=9) approves the offering of any product by an [enterprise](/usc/12/4502.md?p=10), the [Director](/usc/12/4502.md?p=9) may establish terms, conditions, or limitations with respect to such product with which the [enterprise](/usc/12/4502.md?p=10) must comply in order to offer such product.
- (e) **Exclusions—**
  - (1) **In general—** The requirements of subsections [(a)](#a) through [(d)](#d) do not apply with respect to—
    - (A) the automated loan underwriting system of an [enterprise](/usc/12/4502.md?p=10) in existence as of July 30, 2008, including any upgrade to the technology, operating system, or software to operate the underwriting system;
    - (B) any modification to the [mortgage](/usc/12/1707.md?p=a) terms and conditions or [mortgage](/usc/12/1707.md?p=a) underwriting criteria relating to the [mortgages](/usc/12/1707.md?p=a) that are purchased or guaranteed by an [enterprise](/usc/12/4502.md?p=10), provided that such modifications do not alter the underlying transaction so as to include services or financing, other than residential [mortgage](/usc/12/1707.md?p=a) financing; or
    - (C) any other activity that is substantially similar, as determined by rule of the [Director](/usc/12/4502.md?p=9) to—
      - (i) the activities described in subparagraphs [(A)](#e-1-A) and [(B)](#e-1-B); and
      - (ii) other activities that have been approved by the [Director](/usc/12/4502.md?p=9) in accordance with this section.
  - (2) **Expedited review—**
    - (A) **Enterprise notice—** For any new activity that an [enterprise](/usc/12/4502.md?p=10) considers not to be a product, the [enterprise](/usc/12/4502.md?p=10) shall provide written notice to the [Director](/usc/12/4502.md?p=9) of such activity, and may not commence such activity until the date of receipt of a notice under [subparagraph (B)](#e-2-B) or the expiration of the period described in [subparagraph (C)](#e-2-C). The [Director](/usc/12/4502.md?p=9) shall establish, by regulation, the form and content of such written notice.
    - (B) **Director determination—** Not later than 15 days after the date of receipt of a notice under [subparagraph (A)](#e-2-A), the [Director](/usc/12/4502.md?p=9) shall determine whether such activity is a product subject to approval under this section. The [Director](/usc/12/4502.md?p=9) shall, immediately upon so determining, notify the [enterprise](/usc/12/4502.md?p=10).
    - (C) **Failure to act—** If the [Director](/usc/12/4502.md?p=9) fails to determine whether such activity is a product within the 15-day period described in [subparagraph (B)](#e-2-B), the [enterprise](/usc/12/4502.md?p=10) may commence the new activity in accordance with [subparagraph (A)](#e-2-A).
- (f) **No limitation—** Nothing in this section may be construed to restrict—
  - (1) the safety and soundness authority of the [Director](/usc/12/4502.md?p=9) over all new and existing products or activities; or
  - (2) the authority of the [Director](/usc/12/4502.md?p=9) to review all new and existing products or activities to determine that such products or activities are consistent with the statutory mission of an [enterprise](/usc/12/4502.md?p=10).

## Source credit

(Pub. L. 102–550, title XIII, § 1321, as added Pub. L. 110–289, div. A, title I, § 1123, July 30, 2008, 122 Stat. 2689.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 4541, Pub. L. 102–550, title XIII, § 1321, Oct. 28, 1992, 106 Stat. 3952, related to the Secretary of Housing and Urban Development’s regulatory authority, prior to repeal by Pub. L. 110–289, div. A, title I, § 1121(2), July 30, 2008, 122 Stat. 2689.