---
kind: "section"
citation: "12 U.S.C. § 4565"
title: "12"
title_heading: "Banks and Banking"
number: "4565"
heading: "Duty to serve underserved markets and other requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4565"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter I — Supervision and Regulation of Enterprises"
  - "Part B — Additional Authorities of the Director"
  - "Subpart 2 — housing goals"
---

# §4565. Duty to serve underserved markets and other requirements

- (a) **Duty to serve underserved markets—**
  - (1) **1 Duty—** To increase the liquidity of [mortgage](/usc/12/1707.md?p=a) investments and improve the distribution of investment capital available for [mortgage](/usc/12/1707.md?p=a) financing for underserved markets, each [enterprise](/usc/12/4502.md?p=10) shall provide leadership to the market in developing loan products and flexible underwriting guidelines to facilitate a secondary market for [mortgages](/usc/12/1707.md?p=a) for very low-, low-, and [moderate-income](/usc/12/4502.md?p=16) families with respect to the following underserved markets:
    - (A) **Manufactured housing—** The [enterprise](/usc/12/4502.md?p=10) shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for [mortgages](/usc/12/1707.md?p=a) on manufactured homes for very low-, low-, and [moderate-income](/usc/12/4502.md?p=16) families.
    - (B) **Affordable housing preservation—** The [enterprise](/usc/12/4502.md?p=10) shall develop loan products and flexible underwriting guidelines to facilitate a secondary market to preserve housing affordable to very low-, low-, and [moderate-income](/usc/12/4502.md?p=16) families, including housing projects subsidized under_[^2]
      - (i) the project-based and tenant-based rental assistance programs under [section 1437f of title 42](/usc/42/1437f.md);
      - (ii) the program under [section 1715z–1 of this title](/usc/12/1715z–1.md);
      - (iii) the below-market interest rate [mortgage](/usc/12/1707.md?p=a) program under [section 1715l(d)(4)](/usc/12/1715l.md) of this title;
      - (iv) the supportive housing for the elderly program under [section 1701q of this title](/usc/12/1701q.md);
      - (v) the supportive housing program for [persons](/usc/12/5481.md?p=19) with disabilities under [section 8013 of title 42](/usc/42/8013.md);
      - (vi) the programs under title IV of the McKinney-Vento Homeless Assistance Act [[42 U.S.C. 11360](/usc/42/11360.md) et seq.], but only permanent supportive housing projects subsidized under such programs;
      - (vii) the rural rental housing program under [section 1485 of title 42](/usc/42/1485.md);
      - (viii) the [low-income](/usc/12/4502.md?p=14) housing tax [credit](/usc/12/5481.md?p=7) under [section 42 of title 26](/usc/26/42.md); and
      - (ix) comparable [state](/usc/12/4502.md?p=22)[^3] and local affordable housing programs.
    - (C) **Rural markets—** The [enterprise](/usc/12/4502.md?p=10) shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for [mortgages](/usc/12/1707.md?p=a) on housing for very low-, and low-, and [moderate-income](/usc/12/4502.md?p=16) families in rural areas.
- (b) **In general—** To meet the housing goals established under this subpart and to carry out the duty under [subsection (a)](#a) of this section, each [enterprise](/usc/12/4502.md?p=10) shall—
  - (1) design programs and products that facilitate the use of assistance provided by the Federal Government and [State](/usc/12/4502.md?p=22) and local governments;
  - (2) develop relationships with nonprofit and for-profit organizations that develop and finance housing and with [State](/usc/12/4502.md?p=22) and local governments, including housing finance [agencies](/usc/12/4502.md?p=2);
  - (3) take affirmative steps to—
    - (A) assist primary lenders to make housing [credit](/usc/12/5481.md?p=7) available in areas with concentrations of [low-income](/usc/12/4502.md?p=14) and minority families, and
    - (B) assist [insured depository institutions](/usc/12/1861.md?p=b-4) to meet their obligations under the Community Reinvestment Act of 1977 [[12 U.S.C. 2901](/usc/12/2901.md) et seq.],

    which shall include developing appropriate and prudent underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures; and

  - (4) develop the institutional capacity to help finance low- and [moderate-income](/usc/12/4502.md?p=16) housing, including housing for first-time homebuyers.
- (c) **Additional categories—** The [Director](/usc/12/4502.md?p=9) may submit recommendations to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate for the establishment of additional categories under [subsection (a)](#a), provided that the [Director](/usc/12/4502.md?p=9) makes a preliminary determination that any such category is important to the mission of the [enterprises](/usc/12/4502.md?p=10), that the category is an underserved market, and that the establishment of such category is warranted.
- (d) **Evaluation and reporting of compliance—**
  - (1) **In general—** The [Director](/usc/12/4502.md?p=9) shall, by regulation, establish effective for 2010 and thereafter a manner for evaluating whether, and the extent to which, the [enterprises](/usc/12/4502.md?p=10) have complied with the duty under [subsection (a)](#a) to serve underserved markets and for rating the extent of such compliance. Using such method, the [Director](/usc/12/4502.md?p=9) shall, for 2010 and each year thereafter, evaluate such compliance and rate the performance of each [enterprise](/usc/12/4502.md?p=10) as to extent of compliance. The [Director](/usc/12/4502.md?p=9) shall include such evaluation and rating for each [enterprise](/usc/12/4502.md?p=10) for a year in the report for that year submitted pursuant to [section 4521(a) of this title](/usc/12/4521.md?p=a).
  - (2) **Separate evaluations—** In determining whether an [enterprise](/usc/12/4502.md?p=10) has complied with the duty referred to in [paragraph (1)](#d-1), the [Director](/usc/12/4502.md?p=9) shall separately evaluate whether the [enterprise](/usc/12/4502.md?p=10) has complied with such duty with respect to each of the underserved markets identified in [subsection (a)](#a), taking into consideration_[^2]
    - (A) the development of loan products, more flexible underwriting guidelines, and other innovative approaches to providing financing to each of such underserved markets;
    - (B) the extent of outreach to qualified loan sellers and other market participants in each of such underserved markets;
    - (C) the volume of loans purchased in each of such underserved markets relative to the market opportunities available to the [enterprise](/usc/12/4502.md?p=10), except that the [Director](/usc/12/4502.md?p=9) shall not establish specific quantitative targets nor evaluate the [enterprises](/usc/12/4502.md?p=10) based solely on the volume of loans purchased; and
    - (D) the amount of investments and grants in projects which assist in meeting the needs of such underserved markets.
  - (3) **Manufactured housing market—** In determining whether an [enterprise](/usc/12/4502.md?p=10) has complied with the duty under [subparagraph (A)](#a-1-A) of subsection (a)(1), the [Director](/usc/12/4502.md?p=9) may consider loans secured by both real and personal property.
  - (4) **Prohibition of consideration of affordable housing fund grants for meeting duty to serve—** In determining whether an [enterprise](/usc/12/4502.md?p=10) has complied with the duty referred to in [paragraph (1)](#d-1), the [Director](/usc/12/4502.md?p=9) may not consider any affordable housing fund grant amounts used under [section 4567 of this title](/usc/12/4567.md) for eligible activities under [subsection (g)](/usc/12/4567.md) of such section.

## Footnotes

[^1]: So in original. No par. (2) has been enacted.
[^2]: So in original.
[^3]: So in original. Probably should be capitalized.

## Source credit

(Pub. L. 102–550, title XIII, § 1335, Oct. 28, 1992, 106 Stat. 3961; Pub. L. 105–65, title V, § 517(c), Oct. 27, 1997, 111 Stat. 1403; Pub. L. 110–289, div. A, title I, §§ 1128(c)(1), 1129(a), July 30, 2008, 122 Stat. 2701, 2703.)

## Notes

### Editorial Notes

### References in Text

The McKinney-Vento Homeless Assistance Act, referred to in subsec. (a)(1)(B)(vi), is Pub. L. 100–77, July 22, 1987, 101 Stat. 482. Title IV of the Act is classified principally to subchapter IV (§ 11360 et seq.) of chapter 119 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 11301 of Title 42 and Tables.

The Community Reinvestment Act of 1977, referred to in subsec. (b)(3)(B), is title VIII of Pub. L. 95–128, Oct. 12, 1977, 91 Stat. 1147, which is classified generally to chapter 30 (§ 2901 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2901 of this title and Tables.

### Amendments

2008—Pub. L. 110–289, § 1129(a)(1), inserted “Duty to serve underserved markets and” before “other” in section catchline.

Subsec. (a). Pub. L. 110–289, § 1129(a)(4), added subsec. (a). Former subsec. (a) redesignated (b).

Pub. L. 110–289, § 1129(a)(3)(A)–(D), inserted “and to carry out the duty under subsection (a) of this section” before “, each enterprise shall” in introductory provisions and struck out par. (5) which read as follows: “assist in maintaining the affordability of assisted units in eligible multifamily housing projects with expiring contracts, as defined under the Multifamily Assisted Housing Reform and Affordability Act of 1997.”

Pub. L. 110–289, § 1128(c)(1), substituted “housing goals established under this subpart” for “low- and moderate-income housing goal under section 4562 of this title, the special affordable housing goal under section 4563 of this title, and the central cities, rural areas, and other underserved areas housing goal under section 4564 of this title” in introductory provisions.

Subsec. (b). Pub. L. 110–289, § 1129(a)(3)(E), redesignated subsec. (a) as (b).

Pub. L. 110–289, § 1129(a)(2), struck out subsec. (b). Text read as follows: “Actions taken under subsection (a)(5) of this section shall constitute part of the contribution of each entity in meeting its affordable housing goals under sections 4562, 4563, and 4564 of this title for any fiscal year, as determined by the Secretary.”

Subsecs. (c), (d). Pub. L. 110–289, § 1129(a)(5), added subsecs. (c) and (d).

1997—Subsec. (a). Pub. L. 105–65, § 517(c)(3), designated existing provisions as subsec. (a) and inserted heading.

Subsec. (a)(5). Pub. L. 105–65, § 517(c)(1), (2), (4), added par. (5).

Subsec. (b). Pub. L. 105–65, § 517(c)(4), added subsec. (b).