usc 12 § 4564
Discretionary adjustment of housing goals (BANKS AND BANKING (12 U.S.C.))
Operative Text
An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal or subgoal for such year established pursuant to this subpart. The Director may reduce the level for a goal or subgoal pursuant to such a petition only if— market and economic conditions or the financial condition of the enterprise require such action; or efforts to meet the goal or subgoal would result in the constraint of liquidity, over-investment in certain market segments, or other consequences contrary to the intent of this subpart, or or section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act ( note), as applicable. The Director shall, promptly upon receipt of a petition regarding a reduction, seek public comment on the reduction for a period of 30 days. The Director shall make a determination regarding any proposed reduction within 30 days after the expiration of such public comment period. The Director may extend such determination period for a single additional 15-day period, but only if the Director requests additional information from the enterprise.
Under 12 U.S.C. § 4564, a government-sponsored enterprise (such as Fannie Mae or Freddie Mac) may formally request that its federal regulator — the Director of the Federal Housing Finance Agency — lower one or more of its affordable-housing goals or subgoals for a given year. The Director may grant such a reduction only when specific conditions are met, such as adverse market or economic conditions, financial strain on the enterprise, or risks of liquidity problems and over-investment in certain market segments. Before deciding, the Director must open a 30-day public comment window and then issue a determination within 30 days after that period closes, with a possible 15-day extension if additional information is needed from the enterprise.
Plain English — not legal advice.
While 12 U.S.C. § 4564 directly governs the conduct of government-sponsored enterprises and their federal regulator rather than individual landlords, property owners and managers benefit from understanding how this provision shapes the secondary mortgage market. When an enterprise successfully petitions for a goal reduction under this section, the availability and pricing of mortgage products tied to affordable-housing segments may shift, which can affect financing options for rental properties. Operators who track FHFA public comment proceedings under § 4564 can stay informed about potential changes in the secondary market that may influence their portfolio financing strategies.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 12 U.S.C. § 4564 establishes a process by which the enterprises that back a large share of U.S. mortgages can seek relief from their affordable-housing lending targets, which can indirectly affect the availability of mortgage credit in lower-cost housing segments. Tenants and housing advocates have a formal opportunity to weigh in, since the Director is required to open a 30-day public comment period before any reduction under § 4564 is approved. Those concerned about the impact of a proposed goal reduction on affordable housing access may consider submitting comments during that public window or connecting with a tenant-rights or housing-advocacy organization to understand how the process may affect local housing markets.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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