[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Notices]
[Pages 7407-7409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3466]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4461-D-02]


Redelegation of Fair Housing And Other Authorities Respecting the 
Government Sponsored Enterprises Under the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 to the Assistant Secretary 
for Fair Housing and Equal Opportunity

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice of redelegation of authority.

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SUMMARY: This notice redelegates from the Assistant Secretary for 
Housing-Federal Housing Commissioner to the Assistant Secretary for 
Fair Housing and Equal Opportunity the Fair Housing authority, and 
other authorities necessary to carry out the Fair Housing authority, 
under the Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992.

EFFECTIVE DATE: February 5, 1999.

FOR FURTHER INFORMATION CONTACT: Bryan Greene, Acting Director of 
Policy and Program Evaluation, Office of Fair Housing and Equal 
Opportunity, Room 5246, telephone (202) 708-1145; or for legal 
questions, contact Kenneth Markison, Assistant General Counsel for GSE/
RESPA, room 9262, telephone (202) 708-3137 (these are not toll-free 
numbers). The address for both persons is Department of Housing and 
Urban Development, 451 Seventh Street, S.W.,

[[Page 7408]]

Washington, D.C. 20410. For hearing-and speech-impaired persons, the 
telephone numbers may be accessed via TTY (text telephone) by calling 
the Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Under the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (FHEFSSA) (12 U.S.C. 4501 et 
seq.), the Secretary of Housing and Urban Development has general and 
specific regulatory authorities respecting the Federal National 
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage 
Corporation (Freddie Mac) (collectively, the Government-Sponsored 
Enterprises or GSEs) which have been delegated to the Assistant 
Secretary for Housing-Federal Housing Commissioner, the notice of which 
is published elsewhere in today's Federal Register.
    The Fair Housing provisions of FHEFSSA (12 U.S.C. 4545) mandate 
that the Secretary: prohibit the GSEs from discriminating in their 
mortgage purchases; require the GSEs to submit data to assist in 
investigations of mortgage lenders under the Fair Housing Act and the 
Equal Credit Opportunity Act (ECOA); obtain information on Fair Housing 
Act and ECOA violations and provide such information to the GSEs; 
direct the GSEs to take remedial actions against lenders with 
discriminatory lending practices; and periodically review and comment 
on the GSEs' underwriting and appraisal guidelines to ensure that the 
guidelines are consistent with FHEFSSA and the Fair Housing Act. Under 
HUD's GSE regulations (24 CFR 81.47), as appropriate, the Secretary is 
required to refer violations of 12 U.S.C. 4545 to the Director of the 
Office of Federal Housing Enterprise Oversight (OFHEO) to initiate 
enforcement actions for GSE violations or potential violations of its 
provisions pursuant to 12 U.S.C. 4513 and 4631 of FHEFSSA.
    FHEFSSA establishes the Secretary's authority to require reports on 
GSE activities as the Secretary deems appropriate (12 U.S.C, 4547). 
This includes the authority under 24 CFR 81.65 to require that a GSE 
furnish the data underlying any reports and conduct additional analyses 
concerning any such report. Under 24 CFR 81.102, the Secretary is also 
authorized to independently verify the accuracy and completeness of the 
data, information, and reports provided by each GSE, including 
conducting on-site verification, when such steps are reasonably related 
to determining whether a GSE is complying with 12 U.S.C. 4541-4589 of 
FHEFSSA and the GSEs' Charter Acts. FHEFFSA provides at 12 U.S.C. 4546 
that the Secretary may by regulation or order provide that certain 
information shall be treated as proprietary information and not subject 
to public disclosure under 12 U.S.C. 4543.
    The Assistant Secretary for Fair Housing and Equal Opportunity is 
delegated the Secretary's authority under the Fair Housing Act (42 
U.S.C. 3601 et seq.), which includes authority over the GSEs under that 
Act. This redelegation of Fair Housing authority under FHEFSSA 
complements those authorities of the Assistant Secretary for Fair 
Housing and Equal Opportunity.
    In carrying out the Fair Housing authority under FHEFSSA, the 
Assistant Secretary for Fair Housing and Equal Opportunity will receive 
confidential and proprietary information of the GSEs. The Assistant 
Secretary for Fair Housing and Equal Opportunity will establish all 
necessary safeguards to protect such information, including 
establishment of appropriate organizational walls and confidentiality 
agreements.
    The Assistant Secretary for Housing-Federal Housing Commissioner 
is, therefore, redelegating to the Assistant Secretary for Fair Housing 
and Equal Opportunity all of the Fair Housing authority under FHEFSSA. 
To carry out this authority, the Assistant Secretary for Housing-
Federal Housing Commissioner is also redelegating the authority to 
refer violations of FHEFSSA to OFHEO for enforcement in accordance with 
24 CFR 81.47; to require necessary reports, underlying data, and 
analyses; and to verify the accuracy and completeness of the data, 
information, and reports provided by the GSEs, including conducting on-
site verification.
    The authority under FHEFSSA that is redelegated under this notice 
does not include the Secretary's general regulatory power, authority 
provided to Administrative Law Judges in 24 CFR part 81, or the 
authority to: issue rules and regulations; waive regulations; determine 
whether data is proprietary; issue orders providing that data is 
proprietary; submit annual reports to Congress; make certain income 
adjustments or determinations; issue cease-and-desist orders and impose 
civil money penalties; request the Attorney General to bring actions; 
settle and deposit civil money penalties; or make orders and agreements 
publicly available.
    Accordingly, the Assistant Secretary for Housing-Federal Housing 
Commissioner hereby redelegates to the Assistant Secretary for Fair 
Housing and Equal Opportunity the following:

Section A. Authorities Redelegated

    1. All power and authority under the Fair Housing provisions of 
FHEFSSA at 12 U.S.C. 4545 and under regulations at 24 CFR part 81, 
subpart C, including, but not limited to: prohibiting each GSE from 
discriminating in any manner in the purchase of any mortgage because of 
race, color, religion, sex, handicap, familial status, age, or national 
origin, including any consideration of the age or location of the 
dwelling or the age of the neighborhood or census tract where the 
dwelling is located in a manner that has a discriminatory effect; 
requiring each GSE to submit data to assist the Secretary in 
investigating whether a mortgage lender with which the GSE does 
business has failed to comply with the Fair Housing Act; requiring each 
GSE to submit data to the Secretary to assist in investigating whether 
a mortgage lender with which the GSE does business has failed to comply 
with the Equal Credit Opportunity Act (ECOA) and to submit information 
to ECOA enforcement agencies; obtaining information on Fair Housing Act 
and ECOA violations and providing that to the GSEs; directing the GSEs 
to take remedial actions against lenders with discriminatory lending 
practices; and periodically reviewing and commenting on the GSEs' 
underwriting and appraisal guidelines to ensure that such guidelines 
are consistent with the Fair Housing Act and FHEFSSA.
    2. All power and authority necessary to carry out the Fair Housing 
provisions of FHEFSSA at 12 U.S.C. 4545 including, but not limited to: 
requiring additional reports or other information concerning GSE 
activities; requiring the GSEs to provide data underlying any of the 
reports required under 24 CFR part 81 and to conduct additional 
analyses concerning any report required under 24 CFR part 81; 
requesting the Director of the Office of Federal Housing Enterprise 
Oversight to bring actions to enforce violations of 12 U.S.C. 4545; and 
under 24 CFR 81.102 to independently verify the accuracy and 
completeness of the data, information, and reports provided by each 
GSE, including conducting on-site verification when such steps are 
reasonably related to determining whether a GSE is complying with 12 
U.S.C. 4541-4589 and the GSEs' Charter Acts.
    3. All power and authority to carry out the Fair Housing provisions 
of FHEFSSA at 12 U.S.C. 4545 respecting access to information at 12 
U.S.C. 4543 and 4546 including, but not limited to, recommending the 
invocation of 5

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U.S.C. 552(b)(4), (6), and (8); and not providing public access to 
proprietary data.

Section B. No Authority to Redelegate

    The Assistant Secretary for Fair Housing and Equal Opportunity may 
not redelegate to employees of the Office of Fair Housing and Equal 
Opportunity any of the power and authority delegated under this 
redelegation.

    Authority: Secs. 1321, 1323, 1325, 1326 and 1327 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992, 12 
U.S.C. 4541, 4543, 4545, 4546 and 4547; section 7(d), Department of 
Housing and Urban Development Act, 42 U.S.C. 3535(d).

    Dated: February 5, 1999.
William Apgar,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 99-3466 Filed 2-11-99; 8:45 am]
BILLING CODE 4210-27-P