(a) In general The Secretary shall establish an annual goal for the purchase by each enterprise of mortgages on housing for low- and moderate-income families.

The Secretary may establish separate specific subgoals within the goal under this section and such subgoals shall not be enforceable under the provisions of section 4566 of this title, any other provision of this chapter, or any provision of the Federal National Mortgage Association Charter Act [12 U.S.C. 1716 et seq.] or the Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1451 et seq.]. (b) Factors to be applied In establishing the goal under this section, the Secretary shall consider - (1) national housing needs; (2) economic, housing, and demographic conditions; (3) the performance and effort of the enterprises toward achieving the low- and moderate-income housing goal in previous years; (4) the size of the conventional mortgage market serving low- and moderate-income families relative to the size of the overall conventional mortgage market; (5) the ability of the enterprises to lead the industry in making mortgage credit available for low- and moderate-income families; and (6) the need to maintain the sound financial condition of the enterprises. (c) Use of borrower and tenant income (1) In general The Secretary shall monitor the performance of each enterprise in carrying out this section and shall evaluate such performance (for purposes of section 4566 of this title) based on - (A) in the case of an owner-occupied dwelling, the mortgagor's income at the time of origination of the mortgage; or (B) in the case of a rental dwelling - (i) the income of the prospective or actual tenants of the property, where such data are available; or (ii) the rent levels affordable to low- and moderate-income families, where the data referred to in clause (i) are not available. (2) Affordability For the purpose of paragraph (1)(B)(ii), a rent level shall be considered affordable if it does not exceed 30 percent of the maximum income level of the income categories referred to in this section, with appropriate adjustments for unit size as measured by the number of bedrooms. (d) Transition (1) Interim target Notwithstanding any other provision of this section, during the 2-year period beginning on January 1, 1993, the annual target under this section for low- and moderate-income mortgage purchases for each enterprise shall be 30 percent of the total number of dwelling units financed by mortgage purchases of the enterprise. (2) Interim goal During such 2-year period, the Secretary shall establish a separate annual goal for each enterprise, the achievement of which shall require - (A) an enterprise that is not meeting the target under paragraph (1) upon January 1, 1993, to improve its performance relative to such target annually and, to the maximum extent feasible, to meet such target at the conclusion of such 2-year period; and (B) an enterprise that is meeting the target under paragraph (1) upon January 1, 1993, to improve its performance relative to the target. (3) Implementation The Secretary shall establish any requirements necessary to implement the transition provisions under this subsection by notice, after providing the enterprises with an opportunity to review and comment not less than 30 days before the issuance of such notice.

Such notice shall be issued not later than the expiration of the 90-day period beginning upon October 28, 1992, and shall be effective upon issuance.