PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3953

SEC. 1322. PRIOR APPROVAL AUTHORITY FOR NEW PROGRAMS. 12 USC 4542.

(a) AUTHORITY.—The Secretary shall require each enterprise
to obtain the approval of the Secretary for any new program of
the enterprise before implementing the program.

(b) STANDARD FOR APPROVAL-

CD PERMANENT STANDARD.—Except as provided in para-
graph (2), the Secretary shall approve any new program of
an enterprise for purposes of subsection (a) unless—

(A) for a new program of the Federal National Mort-
gage Association, tne Secretary determines that the pro-
gram is not authorized under paragraph (2), (3), (4), or
(5) of section 302(b) of the Federal National Mortgage
Association Charter Act, or under section 304 of such Act;

(B) for a new program of the Federal Home Loan
Mortgage Corporation, the Secretary determines that the
program is not authorized under section 305(a) (1), (4),
or (5) of the Federal Home Loan Mortgage Corporation
Act; or

(C) the Secretary determines that the new program
is not in the public interest.

(2) TRANSITION STANDARD.—Before the date occurring 12
months after the date of the effectiveness of the regulations
under section 1361(e) establishing the risk-based capital test,
the Secretary shall approve any new program of an enterprise
for purposes of subsection (a) unless—

(A) The Secretary makes a determination as described
in paragraph (1) (A), (B), or (C); or

(B) the Director determines that the new program
would risk significant deterioration of the financial condi-
tion of the enterprise.

(c) PROCEDURE FOR APPROVAL.—

(1) SUBMISSION OF REQUEST.—To obtain the approval of
the Secretary for purposes of subsection (a), an enterprise shall
submit to the Secretary a written request for approval of the
new program that describes the program.

(2) RESPONSE.—The Secretary shall, not later than the
expiration of the 45-day period beginning upon the submission
of a request for approval, approve the request or submit to
the Committee on Banking, Finance and Urban Affairs of the
House of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate a report explaining the
reasons for not approving the request. The Secretary may
extend such period for a single additional 15-day period only
if the Secretary requests additional information from the
enterprise.

(3) FAILURE TO RESPOND.—If the Secretary fails to approve
the request or fails to submit a report under paragraph (2)
during the period under such paragraph, the request shall
be considered to have been approved.

(4) REVIEW OF DISAPPROVAL.—

(A) UNAUTHORIZED NEW PROGRAMS.—If the Secretary
submits a report under paragraph (2) of this subsection
disapproving a request for approval on the grounds under
subparagraph (A) or (B) of subsection (bXD, the Secretary
shall provide the enterprise submitting the request with
a timely opportunity to review and supplement the
administrative record.