12 U.S.C. § 1451

Definitions

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As used in this chapter—(a) The term “Board of Directors” means the Board of Directors of the Corporation.(b) The term “Corporation” means the Federal Home Loan Mortgage Corporation created by this chapter.(c) The term “law” includes any law of the United States or of any State (including any rule of law or of equity).(d) The term “mortgage” includes such classes of liens as are commonly given or are legally effective to secure advances on, or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located or a manufactured home that is personal property under the laws of the State in which the manufactured home is located together with the credit instruments, if any, secured thereby, and includes interests in mortgages.(e) The term “organization” means any corporation, partnership, association, business trust, or business entity.(f) The term “prescribe” means to prescribe by regulations or otherwise.(g) The term “property” includes any property, whether real, personal, mixed, or otherwise, including without limitation on the generality of the foregoing choses in action and mortgages, and includes any interest in any of the foregoing.(h) The term “residential mortgage” means a mortgage which (1) is a mortgage on real estate, in fee simple or under a leasehold having such term as may be prescribed by the Corporation, upon which there is located a structure or structures designed in whole or in part for residential use, or which comprises or includes one or more condominium units or dwelling units (as defined by the Corporation) and (2) has such characteristics and meets such requirements as to amount, term, repayment provisions, number of families, status as a lien on such real estate, and otherwise, as may be prescribed by the Corporation. The term “residential mortgage” also includes a loan or advance of credit insured under title I of the National Housing Act [12 U.S.C. 1702 et seq.] whose original proceeds are applied for in order to finance energy conserving improvements, or the addition of a solar energy system, to residential real estate. The term “residential mortgage” also includes a loan or advance of credit for such purposes, or purchased from any public utility carrying out activities in accordance with the requirements of title II of the National Energy Conservation Policy Act [42 U.S.C. 8211 et seq.] if the residential mortgage to be purchased is a loan or advance of credit the original proceeds of which are applied for in order to finance the purchase and installation of residential energy conservation measures (as defined in section 210(11) 11 See References in Text note below. of the National Energy Conservation Policy Act) in residential real estate, not having the benefit of such insurance and includes loans made where the lender relies for purposes of repayment primarily on the borrower’s general credit standing and forecast of income, with or without other security. The term “residential mortgage” is also deemed to include a secured loan or advance of credit the proceeds of which are intended to finance the rehabilitation, renovation, modernization, refurbishment, or improvement of properties as to which the Corporation may purchase a “residential mortgage” as defined under the first sentence of this subsection. Such term shall also include other secured loans that are secured by a subordinate lien against a property as to which the Corporation may purchase a residential mortgage as defined under the first sentence of this subsection. A “secured loan or advance of credit” is one in which a security interest is taken in the rehabilitated, renovated, modernized, refurbished, or improved property. Such term shall also include a mortgage, lien, or other security interest on the stock or membership certificate issued to a tenant-stockholder or resident-member by a cooperative housing corporation, as defined in section 216 of title 26, and on the proprietary lease, occupancy agreement, or right of tenancy in the dwelling unit of the tenant-stockholder or resident-member in such cooperative housing corporation. The term “residential mortgage” also includes a loan or advance of credit secured by a mortgage or other lien on a manufactured home that is the principal residence of the borrower, without regard to whether the security property is real, personal, or mixed.(i) The term “conventional mortgage” means a mortgage other than a mortgage as to which the Corporation has the benefit of any guaranty, insurance or other obligation by the United States or any of its agencies or instrumentalities.(j) The term “security” has the meaning ascribed to it by section 77b of title 15.(k) The term “State”, whether used as a noun or otherwise, includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.(l) The term “mortgage insurance program” includes, in the case of a residential mortgage secured by a manufactured home, any manufactured home lending program under title I of the National Housing Act [12 U.S.C. 1702 et seq.].(Pub. L. 91–351, title III, § 302, July 24, 1970, 84 Stat. 451; Pub. L. 95–619, title II, § 245, Nov. 9, 1978, 92 Stat. 3233; Pub. L. 95–630, title XVII, § 1702, Nov. 10, 1978, 92 Stat. 3718; Pub. L. 96–153, title III, § 316(c), Dec. 21, 1979, 93 Stat. 1118; Pub. L. 96–294, title V, § 534(a)(2), June 30, 1980, 94 Stat. 741; Pub. L. 98–440, title II, §§ 202, 203(b)(1), 204, Oct. 3, 1984, 98 Stat. 1693–1695; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 102–550, title XIII, § 1382(b), Oct. 28, 1992, 106 Stat. 4002.)Editorial NotesReferences in Text

The National Housing Act, referred to in subsecs. (h) and (l), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title I of the National Housing Act is classified generally to subchapter I (§ 1702 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

The National Energy Conservation Policy Act, referred to in subsec. (h), is Pub. L. 95–619, Nov. 9, 1978, 92 Stat. 3208. Title II of the Act is classified principally to subchapter II (§ 8211 et seq.) of chapter 91 of Title 42, The Public Health and Welfare. Section 210 of the Act (42 U.S.C. 8211) was omitted from the Code pursuant to section 8229 of Title 42 which terminated authority under that section June 30, 1989. For complete classification of this Act to the Code, see Short Title note set out under section 8201 of Title 42 and Tables.

Amendments

1992—Subsec. (h). Pub. L. 102–550 substituted “purchased from any public utility carrying out activities in accordance with the requirements of title II of the National Energy Conservation Policy Act if the residential mortgage to be purchased is a loan or advance of credit the original proceeds of which are applied for in order to finance the purchase and installation of residential energy conservation measures (as defined in section 210(11) of the National Energy Conservation Policy Act) in residential real estate” for “made by a public utility and purchased by the Corporation pursuant to the first sentence of section 1454(a)(1) of this title”.

1986—Subsec. (h). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

1984—Subsec. (d). Pub. L. 98–440, § 202(a), inserted reference to a manufactured home that is personal property under the laws of the State in which the manufactured home is located.

Subsec. (h). Pub. L. 98–440, § 203(b)(1), substituted “status as a lien” for “status as a first lien” and “Such term shall also include other secured loans that are secured by a subordinate lien against a property as to which the Corporation may purchase a residential mortgage as defined under the first sentence of this subsection” for “The maximum principal obligation of loans purchased by virtue of the preceding sentence shall not exceed the dollar limits prescribed by the Federal Home Loan Bank Board with respect to similar types of loans made by Federal savings and loan associations”.

Pub. L. 98–440, § 202(b), inserted provision that term “residential mortgage” also includes a loan or advance of credit secured by a mortgage or other lien on a manufactured home that is the principal residence of the borrower, without regard to whether the security property is real, personal, or mixed.

Subsec. (i). Pub. L. 98–440, § 204, substituted “any of its agencies or instrumentalities” for “a State or an agency or instrumentality of either”.

Subsec. (l). Pub. L. 98–440, § 202(c), added subsec. (l).

1980—Subsec. (h). Pub. L. 96–294 inserted provision relating to loans or advances of credit made by a public utility and purchased by the Corporation pursuant to section 1454(a)(1) of this title.

1979—Subsec. (h). Pub. L. 96–153 expanded definition of residential mortgage to include a mortgage, lien, or other security interest on the stock or membership certificate issued to a tenant-stockholder or resident-member by a cooperative housing corporation, and on the proprietary lease, occupancy agreement, or right of tenancy in the dwelling unit of the tenant-stockholder or resident-member in such cooperative housing corporation.

1978—Subsec. (h). Pub. L. 95–630 inserted provisions expanding definition of “residential mortgage” to include a secured loan or advance of credit the proceeds of which are intended to finance the rehabilitation, renovation, modernization, refurbishment, or improvement of properties as to which the Corporation may purchase a “residential mortgage” as defined under first sentence of this subsection, provisions relating to the maximum principal obligation of loans, and provisions defining “secured loan or advance of credit”.

Pub. L. 95–619 inserted provisions relating to loans or advances of credit insured under title I of the National Housing Act whose original proceeds were applied for to finance energy conserving improvements or solar energy systems and provisions relating to certain loans or advances of credit for such purposes not so insured.

Statutory Notes and Related SubsidiariesEffective Date of 1978 Amendment

Pub. L. 95–630, title XVII, § 1703, Nov. 10, 1978, 92 Stat. 3719, provided that: “This title [amending sections 1451 and 1464 of this title] shall take effect upon enactment [Nov. 10, 1978].”

Short Title of 1981 Amendment

Pub. L. 97–110, title II, § 201, Dec. 26, 1981, 95 Stat. 1514, provided that: “This title [amending sections 1454 and 1717 of this title and enacting provisions set out as a note under section 1454 of this title] may be cited as the ‘Mortgage Purchase Amendments of 1981’.”

Short Title and Statement of Purpose

Pub. L. 91–351, title III, § 301, July 24, 1970, 84 Stat. 451, as amended by Pub. L. 101–73, title VII, § 731(a), Aug. 9, 1989, 103 Stat. 429; Pub. L. 102–550, title XIII, § 1382(a), Oct. 28, 1992, 106 Stat. 4002, provided that:“(a) This title [enacting this chapter] may be cited as the ‘Federal Home Loan Mortgage Corporation Act’.“(b) It is the purpose of the Federal Home Loan Mortgage Corporation—“(1) to provide stability in the secondary market for residential mortgages;“(2) to respond appropriately to the private capital market;“(3) to provide ongoing assistance to the secondary market for residential mortgages (including activities relating to mortgages on housing for low- and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities) by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for residential mortgage financing; and“(4) to promote access to mortgage credit throughout the Nation (including central cities, rural areas, and underserved areas) by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for residential mortgage financing.”

Regulations

Pub. L. 102–550, title XIII, § 1383, Oct. 28, 1992, 106 Stat. 4008, directed the Secretary of Housing and Urban Development and the Director to issue final regulations to implement amendments by subtitle D (§§ 1381–1383) of title XIII of Pub. L. 102–550 not later than the expiration of the 18-month period beginning on Oct. 28, 1992, prior to repeal by Pub. L. 110–289, div. A, title I, § 1161(a)(4), July 30, 2008, 122 Stat. 2779.

Notes of Decisions

Cited in 35 cases (5 in the last 5 years), 1979–2026 · leading case: fhlmc/freddie Mac v. Sfr Investments Pool 1, LLC, 893 F.3d 1136 (9th Cir. 2018).

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fhlmc/freddie Mac v. Sfr Investments Pool 1, LLC, 893 F.3d 1136 (9th Cir. 2018). · cites it 2× “450 (codified as amended at 12 U.S.C. § 1451 et seq.) (chartering Freddie Mac); see generally Perry Capital LLC v.”

David Jacobs v. Fed. Hous. Fin. Agency, 908 F.3d 884 (3rd Cir. 2018). “183 , § 731(a) (codified at 12 U.S.C. § 1451 note) (Freddie Mac); 12 U.”

Paslowski v. Stand. Mortg. Corp. of Georgia, 129 F. Supp. 2d 793 (W.D. Pa. 2000). · cites it 4× “See 12 U.S.C. § 1451 note; 12 U.S.C. § 4501 .”

Montgomery Cnty. Comm'n v. Fed. Hous. Fin. Agency, 776 F.3d 1247 (11th Cir. 2015). · cites it 2× “§ 1716 (Fannie Mae); 12 U.S.C. § 1451 (Freddie Mac). Congress charged these entities “with buying mortgages from banks that had made mortgage loans, thus pumping money into the banking industry that could be used to make more such loans.”

Delaware Cnty. v. Fed. Hous. Fin. Agency, 747 F.3d 215 (3rd Cir. 2014). “§ 1716 (Fannie Mae); see also 12 U.S.C. § 1451 note (Freddie Mac). Fannie and Freddie pursue their mission by purchasing mortgages from third-party lenders, pooling them together and selling securities backed by those mortgages.”

DeKalb Cnty. v. Fed. Hous. Fin. Agency, 741 F.3d 795 (7th Cir. 2013). “450, 451 (1970) (codified, as amended, at 12 U.S.C. §§ 1451 et seq). There is one loose end to tie up: a question of jurisdiction over Brian Hamer, the Director of the Illinois Department of Revenue.”

In Re Fed. Home Loan Mortg. Corp. Derivative Litig., 643 F. Supp. 2d 790 (E.D. Va. 2009). “450 , 451 (1970) (codified as amended at 12 U.S.C. §§ 1451 et seq.). 1 The Office of Federal Housing Enterprise Oversight (“OFHEO”) was a federal agency established in 1992 to oversee and ensure the financial soundness of Fannie Mae and Freddie Mac.”

Montgomery Cnty., Maryland v. Fed. Nat'l Mortg. Ass'n, 740 F.3d 914 (4th Cir. 2014). “See 12 U.S.C. § 1451 note. * Fannie Mae and Freddie Mac carry out their missions by purchasing mortgages originated by third-party lenders, pooling the mortgages into investment instruments, and selling those mortgage-backed securities to raise capital for further purchases.”

Hager v. Fed. Nat'l Mortg. Ass'n, 882 F. Supp. 2d 107 (D.D.C. 2012). “” 12 U.S.C. § 1451 (k). Plaintiffs concede that the exception for taxes on “real property” is inapplicable because the recordation tax is an excise tax on the privilege of transferring title rather than a tax on real property itself.”

Town of Johnston v. Fed. Hous. Fin. Agency, 765 F.3d 80 (1st Cir. 2014). “” 12 U.S.C. § 1451 note. Congress could easily have determined that local taxes on the transfer of real property would impede the entities’ mission, for example by reducing the availability of capital that would otherwise be used to purchase mortgages or by diverting the…”

In re Trusts Established Under the Pooling & Servicing Agreements Relating to the Wachovia Bank Com. Mortg. Trust Com. Mortg. Pass-Through Certificates, Series 2007-C30, 241 F. Supp. 3d 905 (D. Minnesota 2017). “See 12 U.S.C. § 1451 (b). . Before the three operative subsections, the statute begins “Notwithstanding section 1349 of Title 28 or any other provision of law.”

Deerman v. Fed. Home Loan Mortg. Corp., 955 F. Supp. 1393 (N.D. Ala. 1997). “See 12 U.S.C. §§ 1451 , 1454. The FHLMC is specifically prohibited from buying loans with a loan-to-value (“LTV”) ratio in excess of 80% unless the loan carries mortgage insurance or another type of “credit enhancement” to reduce the risk of an uncollectible deficiency *1396…”

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