12 U.S.C. § 1715z: Definitions

The term “multifamily housing” means housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than 5 rental units on 1 site. These units may be detached, semidetached, row house, or multifamily structures. carries the designation of “top tier” or its equivalent, as evaluated by Standard and Poors or any other nationally recognized rating agency; receives a rating of “A” for its general obligation bonds from a nationally recognized rating agency; or otherwise demonstrates its capacity as a sound and experienced agency based on, but not limited to, its experience in financing multifamily housing, fund balances, administrative capabilities, investment policy, internal controls and financial management, portfolio quality, and State or local support. The term “reinsurance agreement” means a contractual obligation under which the Secretary, in exchange for appropriate compensation, agrees to assume a specified portion of the risk of loss that a lender or other party has previously assumed with respect to a mortgage on a multifamily housing property. The term “Secretary” means the Secretary of Housing and Urban Development. the Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; State housing finance and mortgage insurance agencies; and the Federal Housing Finance Board.