---
kind: "section"
citation: "12 U.S.C. § 4601"
title: "12"
title_heading: "Banks and Banking"
number: "4601"
heading: "Review of underwriting guidelines"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4601"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter I — Supervision and Regulation of Enterprises"
  - "Part C — Miscellaneous Provisions"
---

# §4601. Review of underwriting guidelines

- (a) **Study—** Each of the [enterprises](/usc/12/4502.md?p=10) shall conduct a study to review the underwriting guidelines of the [enterprise](/usc/12/4502.md?p=10). The studies shall examine—
  - (1) the extent to which the underwriting guidelines prevent or inhibit the purchase or securitization of [mortgages](/usc/12/1707.md?p=a) for housing located in mixed-use, urban center, and predominantly minority neighborhoods and for housing for low- and [moderate-income](/usc/12/4502.md?p=16) families;
  - (2) the standards employed by private [mortgage](/usc/12/1707.md?p=a) insurers and the extent to which such standards inhibit the purchase and securitization by the [enterprises](/usc/12/4502.md?p=10) of [mortgages](/usc/12/1707.md?p=a) described in [paragraph (1)](#a-1); and
  - (3) the implications of implementing underwriting standards that—
    - (A) establish a downpayment requirement for [mortgagors](/usc/12/1707.md?p=b) 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](/usc/12/5481.md?p=7) history of delinquencies if the borrower can demonstrate a satisfactory [credit](/usc/12/5481.md?p=7) history for at least the 12-month period ending on the date of the application for the [mortgage](/usc/12/1707.md?p=a).
- (b) **Report—** Not later than the expiration of the 1-year period beginning on October 28, 1992, each [enterprise](/usc/12/4502.md?p=10) shall submit to the [Secretary](/usc/12/1715z–22a.md?p=4), 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](/usc/12/4502.md?p=10) under [subsection (a)](#a). Each report shall include any recommendations of the [enterprise](/usc/12/4502.md?p=10) for better meeting the housing needs of low- and [moderate-income](/usc/12/4502.md?p=16) families.

## Source credit

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

## Notes

### 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 section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, 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, Jan. 3, 2001.