12 CFR 1253.4 – New product determination
(a) A new product is any new activity that the Director determines merits public notice and comment about whether it is in the public interest.
Terms Used In 12 CFR 1253.4
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Statute: A law passed by a legislature.
(b) The factors that the Director may consider when determining whether a new product is in the public interest are:
(1) The degree to which the new product might advance any of the purposes of the Enterprise under its authorizing statute;
(2) The degree to which the new product serves underserved markets and housing goals as set forth in sections 1332-1335 of the Safety and Soundness Act (12 U.S.C. §§ 4562–4565);
(3) The degree to which the new product is being or could be supplied by other market participants;
(4) The degree to which the new product promotes competition in the marketplace or, to the contrary, would result in less competition;
(5) The degree to which the new product overcomes natural market barriers or inefficiencies;
(6) The degree to which the new product might raise or mitigate risks to the mortgage finance or financial system;
(7) The degree to which the new product furthers fair housing and fair lending; and
(8) Such other factors as determined appropriate by the Director.