12 U.S.C. § 4502 : US Code - Section 4502: Definitions

Search 12 U.S.C. § 4502 : US Code - Section 4502: Definitions

For purposes of this chapter:
(1) Affiliate
Except as provided by the Director, the term "affiliate" means
any entity that controls, is controlled by, or is under common
control with, an enterprise.
(2) Capital distribution
(A) In general
The term "capital distribution" means -
(i) any dividend or other distribution in cash or in kind
made with respect to any shares of, or other ownership
interest in, an enterprise, except a dividend consisting only
of shares of the enterprise;
(ii) any payment made by an enterprise to repurchase,
redeem, retire, or otherwise acquire any of its shares,
including any extension of credit made to finance an
acquisition by the enterprise of such shares; and
(iii) any transaction that the Director determines by
regulation to be, in substance, the distribution of capital.
(B) Exception
Any payment made by an enterprise to repurchase its shares
for the purpose of fulfilling an obligation of the enterprise
under an employee stock ownership plan that is qualified under
section 401 of title 26 or any substantially equivalent plan,
as determined by the Director, shall not be considered a
capital distribution.
(3) Compensation
The term "compensation" means any payment of money or the
provision of any other thing of current or potential value in
connection with employment.
(4) Core capital
The term "core capital" means, with respect to an enterprise,
the sum of the following (as determined in accordance with
generally accepted accounting principles):
(A) The par or stated value of outstanding common stock.
(B) The par or stated value of outstanding perpetual,
noncumulative preferred stock.
(C) Paid-in capital.
(D) Retained earnings.
The core capital of an enterprise shall not include any amounts
that the enterprise could be required to pay, at the option of
investors, to retire capital instruments.
(5) Director
The term "Director" means the Director of the Office of Federal
Housing Enterprise Oversight of the Department of Housing and
Urban Development.
(6) Enterprise
The term "enterprise" means -
(A) the Federal National Mortgage Association and any
affiliate thereof; and
(B) the Federal Home Loan Mortgage Corporation and any
affiliate thereof.
(7) Executive officer
The term "executive officer" means, with respect to an
enterprise, the chairman of the board of directors, chief
executive officer, chief financial officer, president, vice
chairman, any executive vice president, and any senior vice
president in charge of a principal business unit, division, or
function.
(8) Low-income
The term "low-income" means -
(A) in the case of owner-occupied units, income not in excess
of 80 percent of area median income; and
(B) in the case of rental units, income not in excess of 80
percent of area median income, with adjustments for smaller and
larger families, as determined by the Secretary.
(9) Median income
The term "median income" means, with respect to an area, the
unadjusted median family income for the area, as determined and
published annually by the Secretary.
(10) Moderate-income
The term "moderate-income" means -
(A) in the case of owner-occupied units, income not in excess
of area median income; and
(B) in the case of rental units, income not in excess of area
median income, with adjustments for smaller and larger
families, as determined by the Secretary.
(11) Mortgage purchases
The term "mortgage purchases" includes mortgages purchased for
portfolio or securitization.
(12) Multifamily housing
The term "multifamily housing" means a residence consisting of
more than 4 dwelling units.
(13) New program
The term "new program" means any program for the purchasing,
servicing, selling, lending on the security of, or otherwise
dealing in, conventional mortgages that -
(A) is significantly different from programs that have been
approved under this Act or that were approved or engaged in by
an enterprise before October 28, 1992; or
(B) represents an expansion, in terms of the dollar volume or
number of mortgages or securities involved, of programs above
limits expressly contained in any prior approval.
(14) Office
The term "Office" means the Office of Federal Housing
Enterprise Oversight of the Department of Housing and Urban
Development.
(15) Secretary
The term "Secretary" means the Secretary of Housing and Urban
Development.
(16) Single family housing
The term "single family housing" means a residence consisting
of 1 to 4 dwelling units.
(17) State
The term "State" means the States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, the Virgin
Islands, American Samoa, the Trust Territory of the Pacific
Islands, and any other territory or possession of the United
States.
(18) Total capital
The term "total capital" means, with respect to an enterprise,
the sum of the following:
(A) The core capital of the enterprise; (!1)
(B) A general allowance for foreclosure losses, which -
(i) shall include an allowance for portfolio mortgage
losses, an allowance for nonreimbursable foreclosure costs on
government claims, and an allowance for liabilities reflected
on the balance sheet for the enterprise for estimated
foreclosure losses on mortgage-backed securities; and
(ii) shall not include any reserves of the enterprise made
or held against specific assets.
(C) Any other amounts from sources of funds available to
absorb losses incurred by the enterprise, that the Director by
regulation determines are appropriate to include in determining
total capital.
(19) Very low-income
The term "very low-income" means -
(A) in the case of owner-occupied units, income not in excess
of 60 percent of area median income; and
(B) in the case of rental units, income not in excess of 60
percent of area median income, with adjustments for smaller and
larger families, as determined by the Secretary.