FHFA Final Rule

8/8/2019 FHFA Final Rule

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81096 Federal Register / Vol. 75, No. 247 / Monday, December 27, 2010/ Rules and Regulations

1See 12 U.S.C. 4562. For that reason, consistentwith the proposed rule, the final rule provides thatsuch loans are not eligible to be counted toward theBanks’ housing goals either. The AMA regulationalso authorizes the Banks to purchase other realestate-related collateral, including: second liens andcommercial real estate loans; small business, smallfarm and small agri-business loans; whole loanssecured by manufactured housing regardless of whether the housing qualifies as residential realproperty; and state and local housing financeagency bonds, subject to prior new business activityapproval by FHFA under 12 CFR part 980. See 12CFR 955.2(a).

domestic livestock and wildlife andpotential risks for spread of disease; and

(iii) Describe mitigation activities toprevent the spread of B. abortus fromdomestic livestock and/or wildlife, asapplicable, within or from the

brucellosis management area.

* * * * *Herd blood test. A blood test for

brucellosis conducted in a herd on allcattle or bison 6 months of age or over,except steers and spayed heifers.

* * * * *

Done in Washington, DC, this 17th day of December 2010.

Kevin Shea,

Acting Administrator, Animal and Plant Health Inspection Service.

[FR Doc. 2010–32371 Filed 12–22–10; 8:45 am]

BILLING CODE 3410–34–P

FEDERAL HOUSING FINANCE

AGENCY

12 CFR Part 1281

RIN 2590–AA16

Federal Home Loan Bank HousingGoals

AGENCY: Federal Housing FinanceAgency.ACTION: Final rule.

SUMMARY: Section 1205 of the Housingand Economic Recovery Act of 2008(HERA) amended the Federal HomeLoan Bank Act (Bank Act) by adding a

new section 10C(a) that requires theDirector of the Federal Housing FinanceAgency (FHFA) to establish housinggoals with respect to the Federal HomeLoan Banks’ (Banks) purchase of mortgages, if any. Section 10C(b)provides that the Banks’ housing goalsare to be consistent with the housinggoals established by FHFA for theFederal National Mortgage Association(Fannie Mae) and the Federal HomeLoan Mortgage Corporation (FreddieMac) (collectively, the Enterprises)under sections 1331 through 1334 of theFederal Housing Enterprises Financial

Safety and Soundness Act of 1992(Safety and Soundness Act), as amended by HERA, taking into consideration theunique mission and ownership structureof the Banks.

To implement section 10C, FHFA isadopting a final rule that is substantiallythe same as the proposed rule published

by FHFA for notice and comment. Thefinal rule establishes three single-familyowner-occupied purchase moneymortgage goals and one single-familyrefinancing mortgage goal applicable tothe Banks’ purchases of single-family

owner-occupied mortgages, if any,under their Acquired Member Assets(AMA) programs, consistent with thesingle-family housing goals for theEnterprises. A Bank will be subject tothe housing goals if its AMA-approvedmortgage purchases in a given yearexceed a volume threshold of $2.5

billion.

DATES: This rule is effective January 26,2011.FOR FURTHER INFORMATION CONTACT:Brian Doherty, Acting Senior AssociateDirector, (202) 408–2991, Charles E.McLean, Associate Director, (202) 408–2537, or Rafe R. Ellison, Senior ProgramAnalyst, (202) 408–2968, Office of Housing and Community Investment,1625 Eye Street, NW., Washington, DC20006. (These are not toll-free numbers.)For legal matters, contact KevinSheehan, Attorney, (202) 414–8952, orSharon Like, Managing AssociateGeneral Counsel, (202) 414–8950, Office

of General Counsel, Federal HousingFinance Agency, Fourth Floor, 1700 GStreet, NW., Washington, DC 20552.(These are not toll-free numbers.) Thetelephone number for theTelecommunications Device for theHearing Impaired is (800) 877–8339.SUPPLEMENTARY INFORMATION:

I. Background

A. Federal Home Loan Bank System

The Federal Home Loan Bank System(System) was created by the Bank Act tosupport mortgage lending and relatedcommunity investment. See 12 U.S.C.

1421 et seq. The System is composed of 12 Banks with more than 8,000 memberfinancial institutions, and the System’sfiscal agent, the Office of Finance. TheBanks fulfill their statutory missionprimarily by providing secured loans(called advances) to their members. TheBank Act provides the Banks explicitauthority to make secured advances. 12U.S.C. 1430(a). Advances providemembers with a source of funding formortgages and asset-liabilitymanagement, liquidity for a member’sshort-term needs, and additional fundsfor housing finance and community

investment. Advances are collateralizedprimarily by residential mortgage loansand government and agency securities.12 U.S.C. 1430(a)(3). Communityfinancial institutions (CFIs) (i.e.,members with average total assets of less than $1 billion (as adjustedannually for inflation)) may also pledgesmall business, small agriculture orcommunity development loans ascollateral for advances. 12 U.S.C.1430(a)(3)(E).

Consolidated obligations, consistingof bonds and discount notes, are the

principal source for the Banks to fundadvances and investments. The Office of Finance issues all consolidatedobligations on behalf of the 12 Banks.Although each Bank is primarily liablefor the portion of consolidatedobligations corresponding to theproceeds received by that Bank, eachBank is also jointly and severally liable

with the other eleven Banks for thepayment of principal of, and interest on,all consolidated obligations. See 12 CFR966.9.

B. Bank AMA Programs

In July 2000, the Federal HousingFinance Board (FHFB) adopted a finalregulation authorizing the Banks toestablish Acquired Member Assets(AMA) programs. See 12 CFR part 955.A Bank may participate in an AMAprogram at its discretion; FHFA doesnot have the authority to compel a Bankto engage in any mortgage purchase

activities. Each Bank must receiveapproval from FHFA pursuant to therequirements for new business activitiesin order to establish an AMA program.See 12 CFR part 980. A majority of theBanks have implemented AMAprograms pursuant to the AMA approvalauthority.

In order for a Bank to acquire amortgage loan under an AMA program,the loan must meet the requirements setforth under a three-part test established

by the regulation. The three-part testconsists of: A loan type requirement; amember or housing associate nexusrequirement; and a credit risk-sharingrequirement. 12 CFR 955.2. The AMAregulation generally authorizes theBanks to purchase conforming wholeloans on single-family residential realproperty not more than 90 daysdelinquent. In addition, the Banks areauthorized to purchase conformingwhole loans on single-family residentialreal property regardless of delinquencystatus if the loan is insured orguaranteed by the U.S. government,although such loans are not eligible to

be counted toward the Enterprises’housing goals, as provided in the Safetyand Soundness Act.1 The Banks acquire

AMA from their participating members

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81097Federal Register / Vol. 75, No. 247 / Monday, December 27, 2010/ Rules and Regulations

2See ‘‘Federal Home Loan Banks Second Quarter2010 Combined Financial Report, CombinedStatement of Condition,’’ at 4.

3See ‘‘Federal Home Loan Banks CombinedFinancial Report for 2008’’ at 78–80, and ‘‘FederalHome Loan Banks Combined Financial Report for2009’’ at 55–56.

4 ‘‘Low-income’’ is defined as income not inexcess of 80 percent of area median income. See 12U.S.C. 4502(14).

5 ‘‘Families in low-income areas’’ is defined toinclude families living in census tracts where themedian income does not exceed 80 percent of thearea median income and families with incomes notin excess of the area median income that either livein a minority census tract or in a designated disasterarea. See 12 U.S.C. 4502(28).

6 ‘‘Very low-income’’ is defined as income not inexcess of 50 percent of area median income. See 12U.S.C. 4502(24).

through either a purchase or fundingtransaction. The Banks are notauthorized under the AMA programs tosecuritize the mortgages they purchase.

To date, FHFA has approved twoAMA programs—the MortgagePartnership Finance (MPF) program andthe Mortgage Purchase Program (MPP)—that authorize the Banks to purchase

only eligible single-family, fixed-ratemortgages, including manufacturedhousing loans, from participatingfinancial institution (PFI) members. TheBanks are not approved to purchase anyother types of mortgages under the AMAprograms, including mortgages secured

by multifamily properties. In operation,the Banks have limited their AMAprograms to purchasing conforming,conventional and government-insuredor -guaranteed fixed-rate whole firstmortgages on single-family residentialproperty with maturities ranging from 5to 30 years. Banks have also purchased

participations in AMA-approved loanpools after the original Bank acquiredthe loans. As of June 30, 2010, thecombined value of the AMA mortgageloans in the 12 Banks’ portfolios was$67 billion, representing approximatelyseven percent of the Banks’ totalcombined assets. In contrast, the Banks’outstanding advances, their primary

business line, totaled $540 billion as of June 30, 2010, representing 58 percentof the Banks’ total combined assets.2

The MPF and MPP programs aredesigned such that the Banks managethe interest-rate risk and the PFIassumes a substantial portion of therisks associated with originating themortgage, particularly the credit risk.The AMA regulation requires that PFIsprovide credit enhancement to give themortgages the Banks purchase the creditquality equivalent to an instrumentrated at least investment grade (thefourth highest credit rating category ortriple-B), although the approved AMAprograms require PFIs to enhance theloans to the second highest investmentgrade (double-A). 12 CFR 955.3. The PFImay provide this credit enhancementthrough various means, such asestablishing a risk account to cover

losses in excess of a borrower’s equityand primary mortgage insurance onmortgages purchased by a Bank,accepting direct liability to pay creditlosses up to a specified amount, orentering into a contractual obligation toprovide supplemental mortgageguaranty insurance.

As previously noted, advances remainthe core business activity of the Banks

and a principal means by which theyfulfill their mission. Participation in anAMA program is elective. Theacquisition of AMA has presentedcertain risk management challenges forsome Banks. The AMA are long-term,fixed-rate loans, and the portfoliorequires careful attention to interest raterisk management in order to match the

duration of assets and liabilities and toadjust for loan prepayments. The Banksmust also competitively price theirproduct in the market without erodingtheir own financial interest. Given thesechallenges and in light of recent interestrate and earnings volatility, severalBanks have scaled down their purchasesof AMA and returned to their coreproducts. After peaking in 2003, whenthe Banks purchased over $91.2 billionin AMA, annual AMA purchases havesteadily declined to an annualizedaverage of about $6.7 billion during theperiod between 2006 and 2009. Several

Banks either have stopped acceptingadditional master commitments topurchase AMA from their members orno longer accept delivery. In 2007, 2008and 2009, the principal pay-down andmaturities of AMA held for portfoliowere greater than purchases andfunding of new loans held for portfolio.3

C. Bank Housing Goals Statutory Provisions

Section 10C(a) of the Bank Act, asamended by HERA, requires theDirector of FHFA to ‘‘establish housinggoals with respect to the purchase of mortgages, if any, by the [Banks],’’which ‘‘shall be consistent with thegoals established under sections 1331through 1334 of the [Safety andSoundness Act, as amended].’’ 12 U.S.C.1430c(a). Section 10C(b) provides that,in establishing the goals for the Banks,‘‘the Director shall consider the uniquemission and ownership structure of the[Banks].’’ 12 U.S.C. 1430c(b). Inaddition, section 10C(c) provides that,‘‘to facilitate an orderly transition,’’ theDirector shall establish interim targetgoals for the purchase of mortgages bythe Banks for the calendar years 2009and 2010. 12 U.S.C. 1430c(c). Section

10C(d) provides that the monitoring andenforcement requirements of section1336 of the Safety and Soundness Actshall apply to the Banks in the samemanner and to the same extent as theyapply to the Enterprises. 12 U.S.C.1430c(d). Section 10C(e) requires theDirector to annually report to Congresson the performance of the Banks in

meeting the housing goals under section10C. 12 U.S.C. 1430c(e).

Sections 1331 through 1333 of theSafety and Soundness Act, as amended

by HERA, require the Director of FHFAto establish new housing goals effectivefor 2010 and beyond for the Enterprises.The new Enterprise housing goalsinclude four goals for conventional

conforming single-family owner-occupied housing, one multifamilyspecial affordable housing goal, and onemultifamily special affordable housingsubgoal. See 12 U.S.C. 4561, 4563(a)(2).The single-family housing goals targetpurchase money mortgages for low-income families,4 families that reside inlow-income areas,5 and very low-income families,6 and refinancingmortgages for low-income families. See12 U.S.C. 4562. The multifamily specialaffordable housing goal targetsmultifamily housing affordable to low-income families, and the multifamily

special affordable housing subgoaltargets multifamily housing affordableto very low-income families. See 12U.S.C. 4563. In a separate rulemaking,FHFA has published in the FederalRegister a final rule for the new housinggoals for the Enterprises for 2010 and2011 pursuant to the requirements of sections 1331 through 1333 of the Safetyand Soundness Act, as amended. 75 FR55892 (Sept. 14, 2010).

D. Banks’ and Enterprises’ Differences

Section 1313 of the Safety andSoundness Act, as amended, 12 U.S.C.4513(f), requires the Director of FHFA to

consider the differences between theBanks and the Enterprises wheneverpromulgating regulations that affect theBanks. In preparing the final rule,pursuant to section 1313, the Directorconsidered the differences between theBanks and the Enterprises with respectto the Banks’ cooperative ownershipstructure, mission of providing liquidityto members, affordable housing andcommunity development mission,capital structure, and joint and severalliability, and determined that the finalrule is appropriate. As described below,there are significant differences between

the Enterprise housing goals and theBank housing goals—including





establishing a volume threshold for theBanks to avoid adverse impact on BankAMA programs, particularly withrespect to CFIs that are PFIs—thatrecognize the significant differences

between the Banks’ businesses andpurposes and those of the Enterprises.

Each Bank is a cooperative owned byfinancial institution members that act as

both owners and customers of thecooperative. Members, as owners, areentitled to receive shares of thecooperative’s earnings and access to thecooperative’s products and services,including the AMA programs. A Bank isauthorized to serve only members of itscooperative, and, as discussed above, itsprimary business is providing advancesto its members.

Fannie Mae and Freddie Mac have been owned by investors through theirholdings of preferred or common stockshares since 1968 and 1989,respectively. An Enterprise’s primary

business is securitizing mortgagesoriginated by financial institutions, andguaranteeing the timely payment of

principal and interest on the mortgage- backed securities (MBS). TheEnterprises also purchase mortgages fortheir mortgage portfolios. FHFA hasinstructed the Enterprises tosignificantly reduce the size of theirmortgage portfolios over time. TheBanks are restricted to purchasing loansfrom their members, most of which areregulated depositories. By contrast, theEnterprises have access to a broad,nationwide network of financialinstitutions from which they purchasemortgages. Also, unlike the Banks, forwhich participation in the AMA is anelective activity, the fundamentalstatutory purpose of the Enterprises is to

bring stability in the secondary marketfor residential mortgages by purchasingand making commitments to purchaseresidential mortgages. See 12 U.S.C.1451 note; 12 U.S.C. 1716.

The Banks’ and Enterprises’ different

ownership structures and associatedstatutory restrictions in the Bank Actand the Federal National Mortgage

Association Charter Act and the FederalHome Loan Mortgage Corporation Act(together, the Charter Acts),respectively, have a significant impacton their respective mortgage purchaseactivities. The Enterprises’ mortgagepurchase activities are substantiallygreater than that of the Banks. Incalendar year 2009, the Banks’combined number of single-familymortgage purchases was slightly over48,000, while Fannie Mae purchasedapproximately 3.51 million single-family mortgages and Freddie Macpurchased approximately 2.42 millionsingle-family mortgages. The disparity

between the Banks’ and Enterprises’mortgage purchase businesses was greateven during the peak years of the AMAprograms. In 2003, the Banks purchasedapproximately 606,000 single-familymortgages, which was only 4.3 percentof the approximately 14.02 millionsingle-family mortgages purchased bythe Enterprises in that year (see Figure1).

II. Proposed Rule

On May 28, 2010, FHFA published inthe Federal Register a proposed rule toestablish new housing goals for the

Banks. The 45-day comment periodclosed July 12, 2010. See 75 FR 29947(May 28, 2010). FHFA received a totalof 9 comment letters on the proposed

rule. Five of the comment letters werefrom Banks, one was from a not-for-profit organization, two were from trade





7Federally declared disaster areas are managed by FEMA and can be tracked at FEMA’s Web site.See http://www.fema.gov/news/disasters.fema.

8The Department of the Treasury, the FederalReserve Board and the Federal Deposit InsuranceCorporation, Community Reinvestment Act;Interagency Questions and Answers Regarding Community Reinvestment; Notice, 74 FR 498, 509(Jan. 6, 2009).

associations, and one was from acorporation.

FHFA has considered all of thecomments on the proposed rule and hasdetermined to adopt a final rule that issubstantially the same as the proposedrule. The comments are discussed belowin the Analysis of Final Rule section.Comments that raised issues beyond the

scope of the proposed rule are notaddressed in this final rule, but may beconsidered by FHFA at a future date.

III. Applicability of Bank HousingGoals to 2011 and Beyond

HERA requires FHFA to establish2009 and 2010 interim target housinggoals for the Banks that facilitate anorderly transition and are consistentwith those of the Enterprises. In orderto facilitate an orderly transition, thefinal rule establishes housing goals for2011 and beyond. The Banks’ uniqueownership structure and mission is such

that FHFA needed to add criteria to theBank housing goals that are notnecessary for those of the Enterprises,and FHFA required additional time todevelop those criteria. The Banks’administrative and monitoringchallenges will be reduced by enablingthe Banks to establish policies andprocedures to meet the housing goalsrequirements with the knowledge thatthese requirements will not be changedthe following year. FHFA believes thisapproach will facilitate an orderlytransition to housing goals.

IV. Summary of Final Rule

A. Market-Based Housing Goals

Consistent with the proposed rule, thefinal rule establishes market-basedsingle-family housing goals for theBanks in a manner largely consistentwith the market-based single-familyhousing goals for the Enterprises.Separate goals are established for AMA-approved mortgages on owner-occupiedsingle-family housing. The goals forpurchase money mortgages separatelymeasure performance on purchasemoney mortgages for low-incomefamilies, for families in low-income

areas, and for very low-income families.The goal for refinancing mortgagesmeasures performance on refinancingmortgages for low-income families.

The final rule does not establish benchmark levels to measure the Banks’housing goals performance. The Banks’performance under the housing goalswill be measured relative to the actual goals-qualifying shares of the district-level primary mortgage market duringthe year in their districts. FHFA willcalculate the actual goals-qualifyingshares of the market using all mortgages

originated in the geographic boundariesof each Bank district (meaning that theproperties securing the mortgages arelocated in the district), includingmortgages originated both by membersand non-members.

A Bank meets a housing goal if itsannual performance meets or exceedsthe actual share of the market in that

district that fits the criteria for aparticular housing goal for that year. ABank fails to meet a housing goal if itfalls short of the actual market share forthat goal in that year. All mortgagespurchased by a Bank that meet therequirements of the final rule will counttoward the Bank’s goal performance,regardless of where the propertiessecuring the mortgages are located, butthe market share against which theBank’s performance will be evaluatedwill be the market share of mortgagessecured by properties located in thedistrict, as described above. The

housing goals do not apply to anindividual Bank unless it has exceededthe $2.5 billion volume threshold.

B. Volume Threshold

Consistent with the proposed rule, thefinal rule establishes a dollar volumethreshold of $2.5 billion that a Bank’stotal unpaid principal balance (UPB) of AMA-approved mortgage purchases in agiven year must exceed before the Bankis subject to the housing goals. Thevolume threshold recognizes the Banks’unique mission and ownership structureand the current status of the AMAprograms, specifically, their mission toprovide liquidity to their members.

V. Analysis of Final Rule

A. Definitions—§1281.1

The final rule sets forth definitionsapplicable to the Bank housing goalsprovisions. A number of the definitionsare the same as those applicable to theEnterprise housing goals, and otherdefinitions were modified to reflecttheir applicability to the Banks’ AMAprograms.

‘‘Designated disaster area.’’ Thedefinition of ‘‘families in low-incomeareas’’ includes families with incomes ator below 100 percent of area medianincome (AMI) who reside in ‘‘designateddisaster areas.’’ The final rule defines‘‘designated disaster area’’ as any censustract that is located in a countydesignated by the Federal Governmentas adversely affected by a declaredmajor disaster administered by theFederal Emergency Management Agency(FEMA), where individual assistancepayments were authorized by FEMA. Inorder to remain consistent with therevised definition in the final 2010–

2011 Enterprise housing goals rule, thefinal Bank housing goals rule definitiondoes not include the proposedrequirement that average damageseverity, as reported by FEMA, exceed$1,000 per household in a census tract.

Disaster areas are declared when anarea is adversely affected by someunforeseen event. However, not alldisasters impact housing to the samedegree, and the severity of the impactvaries within the declared area.Presidential Major Disaster Declarationsare defined by FEMA at the county levelin the area affected by the major disasterand can be declared to be eligible forpublic assistance, individual assistance,or both. Public assistance is available tolocal governments for the repair,replacement, or clean-up of publicinfrastructure. Individual assistance is

broken down further into twocategories, housing needs and ‘‘otherthan housing needs.’’ 7 Housing needs

include repair, replacement, andconstruction of homeowner residences.Consistent with the proposed rule andwith the Community Reinvestment Act(CRA), the final rule limits thedefinition of ‘‘designated disaster areas’’

to those counties eligible for individualassistance.

For purposes of complying with CRA,regulators have made the determinationthat ‘‘[e]xaminers will considerinstitution activities related to disasterrecovery that revitalize or stabilize adesignated disaster area for 36 monthsfollowing the date of designation. Where

there is a demonstrable communityneed to extend the period forrecognizing revitalization orstabilization activities in a particulardisaster area to assist in long-termrecovery efforts, this time period may beextended.’’ 8 To accommodate the Banks’

business planning requirements, forpurposes of the low-income areashousing goal, the final rule, consistentwith the proposed rule, will treat adesignated disaster area as effective

beginning on the January 1 after theFEMA designation of the county andcontinuing through December 31 of the

third full calendar year following theFEMA designation. If data are availablein a particular case to support treatmentas a designated disaster area from anearlier date or for a longer period of


http://www.fema.gov/news/disasters.fema

http://www.fema.gov/news/disasters.fema




time, FHFA may provide for suchtreatment by notice to the Banks.

‘‘Families in low-income areas.’’Consistent with the proposed rule, thedefinition of ‘‘families in low-incomeareas’’ in the final rule includes familieswith incomes at or below 100 percent of AMI who reside in ‘‘minority censustracts,’’ which is defined by the Safetyand Soundness Act to mean a censustract that has a minority population of at least 30 percent and a median familyincome of less than 100 percent of AMI.12 U.S.C. 4502(29). In addition, thedefinition of ‘‘families in low-incomeareas’’ includes families with incomes ator below 100 percent of AMI who residein ‘‘designated disaster areas.’’

‘‘Mortgage.’’ Consistent with theproposed rule and the final Enterprise2010–2011 housing goals rule, thedefinition of ‘‘mortgage’’ in the final ruledoes not include personal propertymanufactured housing loans. Therefore,any purchases of personal propertymanufactured housing loans will notqualify for credit under the Bankhousing goals.

‘‘Mortgage purchase.’’ Consistent withthe proposed rule, the final rule defines‘‘mortgage purchase’’ as a transaction inwhich a Bank bought or otherwiseacquired a mortgage. The Bankscommented that the phrase ‘‘otherwiseacquired a mortgage’’ is overly broadand could be read to include the Banks’Affordable Housing Program (AHP) andcollateral received from members. TheBanks requested that FHFA clarify thedefinition to mean a transaction inwhich a Bank bought or otherwiseacquired a mortgage pursuant to theBank’s authority under the AMAregulation. The final rule does not limitthe definition of ‘‘mortgage purchase’’ tomean only purchases of AMA-approvedmortgages, because the types of mortgage purchases that are covered bythe Bank housing goals are set out in§ 1281.11. That section provides that theBank housing goals are limited topurchases of AMA-approved mortgages.

‘‘Refinancing mortgage.’’ Consistent

with the final Enterprise 2010–2011housing goals rule, the definition of ‘‘refinancing mortgage’’ in the final Bankhousing goals rule provides that changesto a loan as a result of a workoutagreement generally will not be treatedas a separate refinancing mortgage. Theproposed Bank housing goals rule didnot address workout agreements in thedefinition ‘‘refinancing mortgage,’’ butthe provision is included in the finalrule to maintain consistency with thelong-standing definition of ‘‘refinancing’’

under the Enterprise housing goals.

B. Housing Goals—Proposed §§1281.10and 1281.11

General. Consistent with the proposedrule, § 1281.10 of the final rule providesan overview of the contents of thissubpart. FHFA will evaluate Bankperformance under the housing goalsestablished for 2010 on a calendar year

basis.Volume Threshold. Consistent with

the proposed rule, § 1281.11(a) of thefinal rule establishes a volume thresholdthat will trigger application of thehousing goals to a Bank. Specifically, aBank that in a calendar year purchasedAMA-approved mortgages with a totalUPB greater than $2.5 billion will besubject to the housing goals for thatyear, a threshold that FHFA selected asone which would result in goals beingapplied to substantial AMA programs,of a size that a number of Banks haveoperated in the past, while enablingsmall programs, which might serve as

mortgage sales outlets for CFIs, tooperate without compliance burdensthat might cause them to be abandoned.To illustrate the magnitude of thisvolume threshold, it is currently equalto approximately 0.25 percent of theoverall single-family market, whichequaled $986 billion (approximately$1.0 trillion). (FHFA arrived at thisestimate of the size of the market byusing 2008 HMDA mortgage originationdata to calculate the total UPB of conforming, first lien mortgagesoriginated in 2008 that were secured byowner-occupied, single-family

residences. Mortgages for homeimprovement and Home Ownership andEquity Protection Act (HOEPA)mortgages were excluded to beconsistent with the market estimateapproach for the Enterprise housinggoals.) Looking at this threshold anotherway, assuming that the average UPB of the mortgages a Bank purchases equals$200,000, a Bank would need topurchase only 12,500 mortgages in agiven year to meet the volumethreshold. In FHFA’s view, below thisthreshold it would be challenging forBanks to ensure that the small numbers

of AMA mortgages purchased—intransactions that the Banks do notthemselves initiate—are representativeof the market and include sufficientaffordable mortgages to meet housinggoals.

FHFA requested comment on whethera volume threshold should apply,whether the proposed volume thresholdof $2.5 billion is appropriate, whether ahigher or lower threshold should apply,and whether the volume thresholdalternatives discussed in the proposedrule or any other alternatives might be

used. The Banks recommendedestablishing a volume threshold at $5.0

billion, or on a sliding scale up to $5 billion, if the Bank met specifiedqualitative factors that serve the Banks’housing mission, such as a Bank’spurchase of Federal HousingAdministration (FHA) or U.S.Department of Veterans Affairs (VA)

mortgages and its use of Bank AHPfunds in conjunction with AMAmortgage purchases. The Banks statedthat applying a higher threshold toBanks that met such qualitativemeasures would encourage the Banks to

be accountable to their housing mission.The Banks also recommended thatmortgages purchased from CFIs beexcluded when determining whether aBank exceeded the volume threshold.Finally, the Banks commented that

because a Bank may not know until thefourth quarter whether it will exceed thevolume threshold that year, the housing

goals should apply to a Bank only in theyear following the year for which theBank exceeded the volume threshold.

A trade association recommendedestablishing a volume threshold of 6,000AMA-approved mortgages purchasedannually. Assuming that the averageUPB of the mortgages a Bank purchasesequals $200,000, the volume thresholdwould be equivalent to $1.2 billion. Anot-for-profit organizationrecommended that there be no volumethreshold.

FHFA has considered the commentson the proposed $2.5 billion volumethreshold and concluded that this

volume threshold will adequately balance the Banks’ missions to supportaffordable housing and to provideliquidity to CFIs. The volume thresholdis intended in part to ensure that Bankswith significant AMA volume in anyyear are subject to the housing goals. Forthat reason, the Bank housing goals willapply in the same calendar year forwhich a Bank exceeded the volumethreshold. In determining whether theproposed $2.5 billion is an appropriatelevel for the volume threshold, FHFAconsidered the volume of mortgagespurchased by the Banks over the past

decade. From 2002 to 2004, when theBanks had their largest presence in thenational market, a number of Banks hadannual volumes of AMA-approvedmortgages greater than $2.5 billion:seven Banks in 2002, eight Banks in2003 and four Banks in 2004. Asignificant percentage of Banks’ annualvolume of AMA-approved mortgagepurchases exceeded $5.0 billion in 2002and 2003: four Banks in 2002 and sevenBanks in 2003. Annual volumes of AMA-approved mortgages weresignificantly lower from 2005 to 2009.





Although a few Banks had annualvolumes exceeding $2.5 billion duringthat period, none of the Banks exceededan annual volume of $5.0 billion. (SeeTable 1.)

Based on this analysis of the volumeof the Banks’ AMA-approved mortgage

purchases, a volume threshold of $2.5 billion is mid-way between the highervolume threshold of $5.0 billion andhousing goals that would apply withoutregard to the volume of mortgagespurchased by the Bank. Increasing thevolume threshold above $2.5 billion

would unnecessarily reduce thelikelihood that a Bank would be subjectto housing goals in the future and wouldnot meet the intent of Congress that theBanks be subject to housing goals, asreflected in HERA.

The volume threshold is alsointended to ensure that Banks with arelatively low annual volume of purchases of AMA-approved mortgages,i.e., $2.5 billion or less, can continue toserve CFIs without being subject to thehousing goals. Several Banks offer theirAMA programs as a service to CFIs,which is consistent with their mission

to provide liquidity to their members.FHFA set the volume threshold at anamount that would ensure that thehousing goals would not cause theBanks that offer AMA programsprimarily to service CFIs to discontinuetheir programs. The AMA programs arean important source of liquidity for suchCFIs, and the discontinuance of anAMA program could adversely impactCFIs, such as those in rural areas, thatmay have limited or no access to thesecondary market because of the higherper-mortgage sales cost associated withdelivering a relatively small number of

mortgages to purchasers, or the inabilityof these CFIs to meet purchasers’mortgage servicing requirements.Because the volume threshold alreadylimits the impact of the housing goalson a Bank with an AMA programfocused on its small members, the finalrule does not exclude mortgagespurchased from CFIs from counting forpurposes of the volume threshold.

Market-Based Housing Goals.Consistent with the proposed rule,§ 1281.11(b) of the final rule providesthat compliance with the housing goals

will be measured by comparing a Bank’sperformance with the actual goals-qualifying shares of the primary marketduring the year in the Bank’s district.Under this retrospective, market-basedapproach, FHFA will calculate theactual goals-qualifying shares of thedistrict-level primary mortgage marketduring the year using all mortgages

originated in the geographic boundariesof each Bank district (meaning that theproperties securing the mortgages arelocated in the district), includingmortgages originated both by membersand non-members. The Enterprisehousing goals rule includes both thismarket-based approach and specific

benchmark housing goal levels for theEnterprises. Under the Bank housinggoals rule, a Bank’s performance willnot be measured against specific

benchmark levels. Several provisions inthe Enterprise housing goals rule thatrelate to the benchmark housing goal

levels have been omitted from the Bankhousing goals rule as unnecessary inlight of the retrospective, market-basedapproach.

As noted in the proposed rule, FHFA believes that the advantages of comparing the Bank’s performance toactual market performance outweigh thedisadvantages. A more detaileddiscussion of the market-basedapproach is included in the finalEnterprise 2010–2011 housing goalsrule. See 75 FR at 55896–55898. Themarket size analysis used to establish

the benchmark levels for the Enterprisehousing goals does not reflectdifferences between the various Bankdistricts. The difficulties in accuratelypredicting the size of the market foreach housing goal in each Bank districtmake it impractical to set meaningfulannual benchmark levels for each Bank.

A disadvantage of the market-based

approach is that public information onthe goal-qualifying shares of the single-family primary mortgage market is notavailable until the release of HomeMortgage Disclosure Act (HMDA) datain late summer of the following year.However, a Bank that is subject to thehousing goals will be active in themortgage market in its district andhence positioned to understand how itsperformance is likely to compare to theoverall market in its district.

In the proposed rule, FHFA discussedother possible alternatives for measuringmarket size that had been considered

and rejected. The Banks recommendedusing a market measurement that islimited to mortgages that are similar tothe types of mortgages a Bank mightpurchase under its AMA program,namely, prime, fixed rate, fullyamortizing mortgage loans that areoriginated by regulated depositoryinstitutions in the member’s district andthat are intended for sale in thesecondary market. However, FHFA hasdetermined that a more inclusivemeasurement of the market will providea better basis for evaluating the extent





to which a Bank’s purchases under itsAMA program address mortgage creditneeds in the Bank’s district.

The Banks also recommended thatmortgages purchased from CFIs beexcluded from consideration under theBank housing goals because suchmortgages are not represented in theHMDA data used to measure the size of

the market. The Banks recommendedthat such loans also be excluded whendetermining whether a Bank exceededthe volume threshold and whenmeasuring a Bank’s actual performanceunder the housing goals. The final ruledoes not exclude mortgages purchasedfrom CFIs from consideration under thehousing goals. As discussed above, thevolume threshold already limits theimpact of the housing goals on a Bankwith an AMA program focused on itssmall members. In addition, removingall mortgages purchased from CFIs fromconsideration under the housing goals

would lead to an inaccurate measure of the extent to which a Bank’s purchasesof AMA-approved mortgages meet thehousing goals.

Consistent with the proposed rule, thefinal rule does not establish benchmarklevels to measure the Banks’performance under the housing goals.FHFA requested comment on whether itwould be appropriate to establish

benchmark levels as a means of measuring the Banks’ housing goalsperformance, in addition to measuringperformance based on a Bank’s actualshare of goal-qualifying mortgagesrelative to its district-level market share,

and if so, whether it would beappropriate to set benchmark levels forthe Bank housing goals equal to the

benchmark levels for the Enterprisehousing goals. The comments did notspecifically address establishing

benchmark levels for the Banks,although a trade association suggestedthat the Banks should be encouraged toexceed the market share.

FHFA has concluded that it would beinappropriate to set benchmark levelsfor the Banks equal to the benchmarklevels for the corresponding Enterprisehousing goals, because the Enterprise

benchmarks are based on nationalmortgage market estimates and no Bankhas an AMA program with a nationalscope. In addition, FHFA has concludedthat setting benchmark levels based ondistrict-level market size estimateswould be inappropriate because themarket sizes cannot be reliablyestimated in advance.

Section 1281.11(b) establishes criteriafor determining the size of the marketfor each Bank district based on HMDAdata on mortgages secured by propertylocated in that Bank district. The criteria

for establishing the size of the marketreflect the types of mortgages that willcount for purposes of the housing goalsand that are typically eligible forpurchase by a Bank. The criteria are thesame as those in the proposed ruleexcept for the definition of higher-priced loan to be used in themeasurement of market size. The

proposed rule would have excludedfrom the measurement of the market anymortgages with rate spreads of 300 basispoints or more above the applicableAverage Prime Offer Rate (APOR)reported under HMDA. Consistent withthe definition in the final Enterprise2010–2011 housing goals rule, forpurposes of measuring the market foreach Bank district, mortgages with ratespreads of 150 basis points above theapplicable APOR reported under HMDAwill be excluded. The 150 basis pointrate spread is consistent with thedefinition of higher-priced loan used by

the Federal Reserve Board.Bank Housing Goals. Consistent withthe proposed rule, § 1281.11(c) through1281.11(f) of the final rule establishesfour single-family housing goalsapplicable to any Bank that exceeds thevolume threshold in a particular year.Goals are established for purchasemoney mortgages for low-incomefamilies, for families in low-incomeareas, and for very low-income families.In addition, a goal is established forrefinancing mortgages for low-incomefamilies. The single-family housinggoals will be based on an evaluation of the Bank’s performance relative to the

market for each housing goal in eachyear. The Banks have not been approvedto purchase multifamily loans under theAMA programs. Accordingly, unlike thenew Enterprise housing goals, the Bankhousing goals do not include amultifamily special affordable housinggoal or multifamily special affordablehousing subgoal.

Two commenters recommendedexpanding the coverage of the Bankhousing goals beyond the scope of theEnterprise housing goals. A not-for-profit organization recommended thatFHFA give Bank housing goals credit for

rental units in single-family properties,stating that such units provide animportant source of affordable housing.A trade association suggested that FHFAconsider adding a neighborhood goal forrefinance lending, in addition to the

borrower goal. In order to remainconsistent with the Enterprise housinggoals, the final rule does not alter the

basic structure of the proposed Bankhousing goals. The Bank housing goalsdo not include any investor-ownedsingle-family properties, and they donot provide additional credit for any

rental units in owner-occupied single-family properties. The Bank housinggoals also do not include a separate goalfor refinancing mortgages in low-incomeareas.

In contrast to the new Enterprisehousing goals, the Bank housing goalsalso do not include a low-income areassubgoal. Because the Bank housing goals

do not include benchmark levels setprospectively, there is no need for aseparate subgoal to address theunpredictable impact designateddisaster areas may have from year toyear.

C. General Counting Requirements—§ 1281.12

Consistent with the proposed rule,§ 1281.12 of the final rule sets forthgeneral requirements for the counting of Bank AMA-approved mortgagepurchases toward the achievement of the housing goals. Performance underthe housing goals will be evaluated

based on the percentage of all AMA-approved mortgages on single-family,owner-occupied properties purchased

by a Bank that meet a particular goal.As proposed, §1281.12(a) of the final

rule provides that performance undereach of the single-family housing goalsshall be measured using a fraction thatis converted into a percentage. Neitherthe numerator nor the denominatorshall include Bank transactions oractivities that are not AMA-approvedmortgage purchases as defined by FHFAor that are specifically excluded asineligible under §1281.13(b). The

numerator is the number of AMA-approved mortgage purchases of a Bankin a particular year that finance owner-occupied single-family properties thatcount toward achievement of aparticular housing goal. Thedenominator is the total number of AMA-approved mortgage purchases of aBank in a particular year that financeowner-occupied, single-familyproperties.

As proposed, §1281.12(b) of the finalrule provides that when a Bank lackssufficient data or information, e.g.,income of mortgagor, to determine

whether the purchase of a mortgagecounts toward achievement of aparticular housing goal, that mortgagepurchase shall be included in thedenominator for that housing goal, butmay not be included in the numerator.The Banks may not use missing dataestimation methodologies, as used bythe Enterprises, in light of thecomplexity of developing an estimationmethodology suitable for the Banks.FHFA invited comment on whether amethod for estimating missingaffordability data would be feasible for





9 In May 2007, FHFB also approved the AtlantaBank’s request to offer the Global Mortgage AllianceProgram (GMAP), under which the Bank wouldfacilitate the sale of certain qualified conformingmortgage loans from eligible members to another of its members—Global Mortgage Alliance, LLC,which would then securitize those loans. To date,no transactions have occurred under GMAP. TheGMAP is not an AMA program authorized underpart 955. Both the MPF Xtra and GMAP programswere separately authorized under the Banks’incidental authority contained in sections 11(a) and11(e)(1) of the Bank Act. See 12 U.S.C. 1431(a),1431(e)(1).

the Bank housing goals but did notreceive comments on this issue.

The provisions in §1281.12(c)through (f), which address credit towardmultiple goals, application of medianincome, sampling and newly availabledata, respectively, are consistent withthe provisions in the proposed rule andthe final Enterprise 2010–2011 housing

goals rule.The MPF program allows Banks to

purchase a percentage of a mortgage ormortgage pool initially acquired byanother Bank under the program. Asdiscussed in the proposed rule, forpurposes of receiving credit under oneof the housing goals, each mortgage will

be assigned to the Bank that initiallyacquired the mortgage regardless of whether an interest in the mortgage waslater sold to another Bank.

In September 2008, FHFA approvedthe Chicago Bank’s request to establishthe MPF Xtra program, under which the

Bank would buy certain qualified,conforming mortgages from eligiblemembers for immediate sale to FannieMae. As discussed in the proposed rule,the MPF Xtra program is not an AMAprogram authorized under 12 CFR part955.9 Under the MPF Xtra program, theBank serves essentially as a conduit orintermediary with respect to the sale of the mortgages to Fannie Mae. Themortgages may be counted by FannieMae toward compliance with itshousing goals. If the mortgages werealso to be considered for purposes of theBank housing goals, double-counting of the mortgages could occur. Avoidingdouble-counting of mortgage purchasesis consistent with the Enterprisehousing goals. An Enterprise cannotreceive credit towards a housing goal fora mortgage purchase if the otherEnterprise received credit for thatmortgage. Additionally, under theEnterprise housing goals, credit towardsa housing goal is only awarded for amortgage where the Enterprisepurchases the mortgage or assumes thecredit risks associated with themortgage. The Bank does not fund MPFXtra mortgages or assume any creditrisks in MPF Xtra transactions. For these

reasons, under the final rule, mortgages

purchased by a Bank pursuant to theMPF Xtra program will not beconsidered for purposes of the Bankhousing goals.

D. Special Counting Requirements—§ 1281.13

Consistent with the proposed rule,§ 1281.13 of the final rule sets forth

special counting requirements for thereceipt of full, partial or no credit for atransaction toward achievement of thehousing goals, a number of which arediscussed further below.

Section 1281.13(b) specifies the typesof transactions that shall not be countedfor purposes of the housing goals andshall not be included in the numeratoror the denominator in calculating aBank’s performance under the housinggoals. The intent of this section is tospecify the counting treatment fortransactions in which the Banks areauthorized to engage under theapproved AMA programs. The countingrules do not purport to authorize thepurchase of any types of mortgages, butare intended solely to indicate whethersuch mortgages shall receive full, partialor no credit toward the housing goals.Accordingly, transactions in which theBanks are not authorized to engageunder the approved AMA programs arenot included in paragraph (b). The Bankcounting rules differ in some respectsfrom the counting rules for theEnterprise housing goals. For example,the Banks are not authorized topurchase private label securities (PLS)under the AMA programs; therefore it is

not necessary to exclude PLS fromcounting under the Bank housing goals.On the other hand, while the Banks areauthorized to purchase non-conventional loans under the AMAauthority, such loans are excluded fromcounting under the Enterprise housinggoals and, therefore, have been excludedfrom counting under the Bank housinggoals as well.

Section 1281.13(b) of the final rulemakes clear that where a mortgage fallswithin one of the categories excludedfrom consideration under the housinggoals, the mortgage shall be excluded

even if it otherwise falls within one of the special counting rules in§ 1281.13(c). For example, a non-conventional mortgage that would beexcluded from consideration pursuantto § 1281.13(b)(1) cannot be countedeven if it otherwise counts as a seasonedmortgage under § 1281.13(c)(2).

Home Equity Conversion Mortgages.Section 1281.13(b)(1) of the final ruleexcludes the purchases of all non-conventional single-family mortgages,including Home Equity ConversionMortgages (HECMs), from counting

towards the Banks’ housing goals—thatis, such purchases shall be excludedfrom both the numerator anddenominator in calculating goalperformance. This is consistent with thecounting treatment for the newEnterprise housing goals, as HERAamended section 1332(a) of the Safetyand Soundness Act to restrict the

Enterprise single-family housing goalsto include only conventional mortgages.See 12 U.S.C. 4562(a).

Mortgages financing secondary residences. Section 1281.13(b)(6) of thefinal rule prohibits the counting of mortgage purchases to the extent theyfinance any dwelling units that aresecondary residences. This is consistentwith the counting treatment for the newEnterprise housing goals, as HERAamended section 1332(a) of the Safetyand Soundness Act to restrict theEnterprise single-family housing goalsto include only purchases of owner-

occupied mortgages. See 12 U.S.C. 4562.Subordinate liens. Section1281.13(b)(8) of the final rule excludesthe purchases of subordinate lienmortgages (second mortgages) fromcounting towards the Banks’ housinggoals. HERA amended section 1331 of the Safety and Soundness Act toprovide that the Enterprise single-familyhousing goals are limited to purchasemoney or refinancing mortgages. See 12U.S.C. 4561. Consistent with thecounting treatment for the newEnterprise housing goals, the Bankhousing goals exclude home equityloans from counting for purposes of the

housing goals. The Bank housing goalsalso exclude other subordinate lienmortgages, such as ‘‘piggy-back’’ loansthat may be acquired by a Bank alongwith the corresponding first lienmortgage. Subordinate lien mortgagesare excluded because it is difficult todetermine whether such loans arepurchase money loans or home equityloans, and because first lien mortgagesprovide a better measure of a Bank’ssupport for residential housing.

Previously counted mortgages.Section 1281.13(b)(9) of the final ruleprohibits the counting of mortgages

toward performance under the housinggoals if the mortgages have previously been counted for purposes of theperformance of the Bank under thehousing goals. In order to limitexcessively burdensome recordkeepingthat could result, the rule makes clearthat this limitation only extends backfor five years. Although the Banks havenot previously been subject to housinggoals, this language is included forapplicability in future years.

Construction-to-permanent loans.Section 1281.13(b)(10) of the final rule





excludes purchases of mortgagessecured by properties that have not beenapproved for occupancy fromconsideration for purposes of thehousing goals.

Housing goals credit for certaintransactions. Section 1281.13(c) of thefinal rule provides that certain types of transactions shall be counted for

purposes of the housing goals, includingmortgages on cooperative housing andcondominium units, seasonedmortgages, and refinancing mortgages.Section 1281.13(c) does not includecertain types of transactions that areeligible for housing goals credit underthe Enterprise housing goals, includingcredit enhancements for goal-qualifyingmortgages, entering into risk sharingagreements with federal agencies tofinance qualifying mortgages, andpurchasing mortgage revenue bonds

backed by qualifying mortgages. Suchtransactions are not eligible for Bank

housing goals credit because of the morelimited scope of the approved AMAprograms. Section 1281.13(c) makesclear that where a transaction fallsunder more than one of the specialcounting rules in §1281.13(c), all of theapplicable requirements must besatisfied in order for the loan to becounted for purposes of the housinggoals.

HOEPA mortgages and mortgageswith unacceptable terms and conditions. Consistent with theproposed rule, §1281.13(d) of the finalrule provides that HOEPA mortgagesand mortgages with unacceptable terms

and conditions must be counted in thedenominator as mortgage purchases butmay not be counted in the numerator,regardless of whether the mortgageswould otherwise qualify based on theaffordability and other counting criteria.This treatment is consistent with pastpractice for the Enterprises and withsection 1332(i) of the Safety andSoundness Act, as amended by HERA,which provides that no credit may begiven for mortgages that FHFAdetermines are ‘‘unacceptable orcontrary to good lending practices.’’ 12U.S.C. 4562(i).

The proposed rule defined‘‘

mortgageswith unacceptable terms or conditions’’

to include mortgages with excessive feesor interest rates, as well as mortgageswith prepayment penalties, mortgagessold with prepaid single-premium creditlife insurance products, and mortgagesoriginated using practices that violatefair lending laws or that are contrary tothe Interagency Guidance onNontraditional Mortgage Product Risks(71 FR 58609) (Oct. 4, 2006), theInteragency Statement on SubprimeMortgage Lending (72 FR 37569) (July

10, 2007), or similar guidancesubsequently issued by federal bankingagencies.

A trade association commented thatFHFA should strengthen the terms andconditions that constitute unacceptablemortgages, and recommended the use of Regulation Z and HOEPA rather thaninteragency guidance to determine

whether a mortgage is eligible to becounted under the housing goals. Thefinal rule does not change the proposeddefinition of ‘‘mortgages withunacceptable terms or conditions.’’While the final rule specificallyreferences interagency guidance onsubprime and nontraditional loans,FHFA expects the Banks to ensure thatmortgage loans they acquire complywith Regulation Z and HOEPA, as wellas any federal law related to minimumstandards for mortgages and predatorylending. As markets and abusivepractices evolve, FHFA may determine

additional terms and conditions to beunacceptable.FHFA guidance. Section 1281.13(e) of

the final rule provides that FHFA mayprovide guidance on the treatment of any transactions under the housinggoals. The guidance may be provided inresponse to a request from a Bank, or atthe initiation of FHFA.

Private label securities. As discussedin the proposed rule, because FHFA iscounting only mortgages purchasedthrough AMA programs in determiningeach Bank’s housing goal performance,and the Banks are not authorized topurchase PLS through these programs,

PLS will not be counted in determininga Bank’s housing goals performance.

Housing finance agency obligationsand other transactions. Consistent withthe proposed rule, the final ruleprovides that only mortgages purchasedthrough AMA programs will count indetermining each Bank’s housing goalperformance. A trade associationcommenter recommended giving theBanks housing goals credit for Bankadvances and investments, includingtransactions such as the purchase of housing finance agency (HFA) bonds,investment in housing-related bonds

and tax credits, and advances to HFAs.The final rule does not expand the typesof transactions that will receive creditunder the housing goals to includetransactions, such as purchases of HFAobligations, that are not AMA-approvedmortgage purchases. Expanding thetypes of Bank transactions subject tohousing goals beyond AMA-approvedmortgage purchases would impede theability of the Banks to make an orderlytransition to the housing goals, becauseit would entail the Banks collectinginformation they may not currently

collect, and for some Banks, modifyingtheir activities involving HFAs.

E. Housing Goals Enforcement—§§ 1281.14 and 1281.15

Consistent with the proposed rule,§ 1281.14 of the final rule provides thatthe Director shall determine whethereach Bank has exceeded the volume

threshold on an annual basis. For anyBank that has exceeded the volumethreshold, the Director will alsodetermine whether the Bank has met thehousing goals, in accordance with thestandards established under the Safetyand Soundness Act, as amended byHERA. If the Director determines that aBank has failed to meet any housinggoal, the Director shall provide notice tothe Bank in writing of such preliminarydetermination.

Consistent with the proposed rule,§ 1281.15 of the final rule includesrequirements for submission of ahousing plan by a Bank for failure tomeet any housing goal that isdetermined to be feasible by FHFA. Therequirement to submit a housing plan isat the discretion of the Director.

F. Reporting Requirements—§§1281.20Through 1281.23

As required for the Enterprises, andconsistent with the proposed rule,§§ 1281.20 through 1281.23 of the finalrule establish reporting requirements forthe Banks with respect to their housinggoals performance. Section 1281.21(a)requires the Banks to collect andcompile computerized loan-level data

on each AMA-approved mortgagepurchased, as described in FHFA’s DataReporting Manual (DRM). Thesereporting requirements apply to eachBank, regardless of whether in aparticular year the Bank expects toexceed the volume threshold and thus

be subject to the housing goals.Section 1281.21(b) requires each Bank

to submit to the Director, on a semi-annual basis, a Mortgage Reportcontaining aggregations of the loan-levelmortgage data for year-to-date AMA-approved mortgage purchases, and year-to-date dollar volume, number of units,

and number of AMA-approvedmortgages on owner-occupiedproperties purchased that do, and donot, qualify under each housing goal.The loan-level data that must bereported are currently collected byFHFA on a semi-annual basis. Asadvances in technology have made morefrequent submissions less burdensome,FHFA will consider quarterly reportingfor the Banks in future years. Quarterlyreporting would be consistent with thecurrent requirements for the Enterprises.The additional data provided facilitates





Dwelling unit means a room or unifiedcombination of rooms intended for use,in whole or in part, as a dwelling by oneor more persons, and includes adwelling unit in a single-familyproperty, multifamily property, or otherresidential or mixed-use property.

Families in low-income areas means:(1) Any family that resides in a census

tract or block numbering area in whichthe median income does not exceed 80percent of the area median income;

(2) Any family with an income thatdoes not exceed area median incomethat resides in a minority census tract;and

(3) Any family with an income thatdoes not exceed area median incomethat resides in a designated disasterarea.

Family means one or moreindividuals who occupy the samedwelling unit.

FEMA means the Federal EmergencyManagement Agency.

FHFA means the Federal HousingFinance Agency.

HMDA means the Home MortgageDisclosure Act of 1975 (12 U.S.C. 2801,et seq.), as amended.

HOEPA mortgage means a mortgagecovered by section 103(aa) of the Truthin Lending Act (15 U.S.C. 1602(aa)), asamended by the Home OwnershipEquity Protection Act (HOEPA), asimplemented by the Board of Governorsof the Federal Reserve System.

HUD means the United StatesDepartment of Housing and UrbanDevelopment.

Low-income means income not inexcess of 80 percent of area medianincome.

Median income means, with respectto an area, the unadjusted medianfamily income for the area as mostrecently determined by HUD. FHFA willprovide the Banks annually withinformation specifying how the medianfamily income estimates formetropolitan areas are to be applied forthe purposes of determining medianfamily income.

Member means an institution that has been approved for membership in aBank and has purchased capital stock in

the Bank in accordance with 12 CFR1263.20 or 1263.24(b), or successorregulation(s).

Metropolitan area means ametropolitan statistical area (MSA), or aportion of such an area, includingMetropolitan Divisions, for whichmedian family income estimates aredetermined by HUD.

Minority means any individual who isincluded within any one or more of thefollowing racial and ethnic categories:

(1) American Indian or AlaskanNative—a person having origins in any

of the original peoples of North andSouth America (including CentralAmerica), and who maintains tribalaffiliation or community attachment;

(2) Asian—a person having origins inany of the original peoples of the FarEast, Southeast Asia, or the Indiansubcontinent, including, for example,Cambodia, China, India, Japan, Korea,

Malaysia, Pakistan, the PhilippineIslands, Thailand, and Vietnam;

(3) Black or African American—aperson having origins in any of the

black racial groups of Africa;(4) Hispanic or Latino—a person of

Cuban, Mexican, Puerto Rican, South orCentral American, or other Spanishculture or origin, regardless of race; and

(5) Native Hawaiian or Other PacificIslander—a person having origins in anyof the original peoples of Hawaii, Guam,Samoa, or other Pacific Islands.

Minority census tract means a censustract that has a minority population of at least 30 percent and a median incomeof less than 100 percent of the areamedian income.

Moderate-income means income notin excess of area median income.

Mortgage means a member of suchclasses of liens, including subordinateliens, as are commonly given or arelegally effective to secure advances on,or the unpaid purchase price of, realestate under the laws of the State inwhich the real estate is located, togetherwith the credit instruments, if any,secured thereby, and includes interestsin mortgages. ‘‘Mortgage’’ includes amortgage, lien, including a subordinate

lien, or other security interest on thestock or membership certificate issuedto a tenant-stockholder or resident-member by a cooperative housingcorporation, as defined in section 216 of the Internal Revenue Code of 1986, andon the proprietary lease, occupancyagreement, or right of tenancy in thedwelling unit of the tenant-stockholderor resident-member in such cooperativehousing corporation.

Mortgage data means data obtained bythe Director from the Bank or Banksunder this part and/or the DataReporting Manual.

Mortgage purchase means atransaction in which a Bank bought orotherwise acquired a mortgage.

Mortgage with unacceptable terms or conditions means a single-familymortgage, including a reverse mortgage,or a group or category of suchmortgages, with one or more of thefollowing terms or conditions:

(1) Excessive fees, where the totalpoints and fees charged to a borrowerexceed the greater of 5 percent of theloan amount or a maximum dollaramount of $1,000, or an alternative

amount requested by a Bank anddetermined by the Director asappropriate for small mortgages;

(i) For purposes of this definition,points and fees include:

(A) Origination fees;(B) Underwriting fees;(C) Broker fees;(D) Finder’s fees; and

(E) Charges that the member imposesas a condition of making the loan,whether they are paid to the member ora third party;

(ii) For purposes of this definition,points and fees do not include:

(A) Bona fide discount points;(B) Fees paid for actual services

rendered in connection with theorigination of the mortgage, such asattorneys’ fees, notary’s fees, and feespaid for property appraisals, creditreports, surveys, title examinations andextracts, flood and tax certifications,and home inspections;

(C) The cost of mortgage insurance orcredit-risk price adjustments;

(D) The costs of title, hazard, andflood insurance policies;

(E) State and local transfer taxes orfees;

(F) Escrow deposits for the futurepayment of taxes and insurancepremiums; and

(G) Other miscellaneous fees andcharges that, in total, do not exceed 0.25percent of the loan amount;

(2) An annual percentage rate thatexceeds by more than 8 percentagepoints the yield on Treasury securitieswith comparable maturities as of the

fifteenth day of the month immediatelypreceding the month in which theapplication for the extension of creditwas received;

(3) Prepayment penalties, exceptwhere:

(i) The mortgage provides some benefit to the borrower in exchange forthe prepayment penalty (e.g., a rate orfee reduction for accepting theprepayment premium);

(ii) The borrower is offered the choiceof another mortgage that does notcontain payment of such a premium;

(iii) The terms of the mortgage

provision containing the prepaymentpenalty are adequately disclosed to the borrower; and

(iv) The prepayment penalty is notcharged when the mortgage debt isaccelerated as the result of the

borrower’s default in making his or hermortgage payments;

(4) The sale or financing of prepaidsingle-premium credit life insuranceproducts in connection with theorigination of the mortgage;

(5) Underwriting practices contrary tothe Interagency Guidance on





Nontraditional Mortgage Product Risks(71 FR 58609) (Oct. 4, 2006), theInteragency Statement on SubprimeMortgage Lending (72 FR 37569) (July10, 2007), or similar guidancesubsequently issued by federal bankingagencies;

(6) Failure to comply with fair lendingrequirements; or

(7) Other terms or conditions that aredetermined by the Director to be anunacceptable term or condition of amortgage.

Non-metropolitan area means acounty, or a portion of a county,including those counties that compriseMicropolitan Statistical Areas, locatedoutside any metropolitan area for whichmedian family income estimates arepublished annually by HUD.

Owner-occupied housing meanssingle-family housing in which amortgagor resides, including two- tofour-unit owner-occupied properties

where one or more units are used forrental purposes.Purchase money mortgage means a

mortgage given to secure a loan used forthe purchase of a single-familyresidential property.

Refinancing mortgage means amortgage undertaken by a borrower thatsatisfies or replaces an existing mortgageof such borrower. The term does notinclude:

(1) A renewal of a single paymentobligation with no change in theoriginal terms;

(2) A reduction in the annualpercentage rate of the mortgage as

computed under the Truth in LendingAct, with a corresponding change in thepayment schedule;

(3) An agreement involving a courtproceeding;

(4) A workout agreement, in which achange in the payment schedule orcollateral requirements is agreed to as aresult of the mortgagor’s default ordelinquency, unless the rate is increasedor the new amount financed exceeds theunpaid balance plus earned financecharges and premiums for thecontinuation of insurance;

(5) The renewal of optional insurance

purchased by the mortgagor and addedto an existing mortgage; or(6) A conversion of a balloon

mortgage note on a single-familyproperty to a fully amortizing mortgagenote where the Bank already owns orhas an interest in the balloon note at thetime of the conversion.

Residence means a property whereone or more families reside.

Residential mortgage means amortgage on single-family housing.

Seasoned mortgage means a mortgageon which the date of the mortgage note

is more than one year before the Bankpurchased the mortgage.

Second mortgage means any mortgagethat has a lien position subordinate onlyto the lien of the first mortgage.

Secondary residence means adwelling where the mortgagor maintains(or will maintain) a part-time place of abode and typically spends (or will

spend) less than the majority of thecalendar year. A person may have morethan one secondary residence at a time.

Single-family housing means aresidence consisting of one to fourdwelling units. Single-family housingincludes condominium dwelling unitsand dwelling units in cooperativehousing projects.

Very low-income means income not inexcess of 50 percent of area medianincome.

Subpart B—Housing Goals

§ 1281.10 General.

Pursuant to the requirements of theBank Act, as amended (12 U.S.C.1430c), this subpart establishes:

(a) Three single-family owner-occupied purchase money mortgagehousing goals, and one single-familyrefinancing mortgage housing goal;

(b) A volume threshold for theapplication of the housing goals to aBank;

(c) Requirements for measuringperformance under the housing goals;and

(d) Procedures for monitoring andenforcing the housing goals.

§ 1281.11 Bank housing goals.(a) Volume threshold. The housing

goals established in this section shallapply to a Bank for a calendar year onlyif the unpaid principal balance (UPB) of the Bank’s purchases of AMA-approvedmortgages in that year exceeds $2.5

billion.(b) Market-based housing goals. A

Bank that is subject to the housing goalsshall be in compliance with a housinggoal if its performance under thehousing goal meets or exceeds the shareof the market that qualifies for thehousing goal. The size of the market for

each housing goal shall be establishedannually by FHFA for each Bank district based on data reported pursuant to theHome Mortgage Disclosure Act for agiven year. Unless otherwise adjusted

by FHFA, the size of the market for eachBank district shall be determined basedon the following criteria:

(1) Only owner-occupied,conventional loans secured by propertylocated in that Bank district shall beconsidered;

(2) Purchase money mortgages andrefinancing mortgages shall be counted

only for the applicable housing goal orgoals;

(3) All mortgages flagged as HOEPAloans or subordinate lien loans shall beexcluded;

(4) All mortgages with originalprincipal balances above the conformingloan limits for single unit properties forthe year being evaluated (rounded to the

nearest $1,000) shall be excluded;(5) All mortgages with rate spreads of

150 basis points or more above theapplicable average prime offer rate asreported in the Home MortgageDisclosure Act data shall be excluded;and

(6) All mortgages that are missinginformation necessary to determineappropriate counting under the housinggoals shall be excluded.

(c) Low-income families housing goal.For a Bank that is subject to the housinggoals, the percentage share of suchBank’s total purchases of purchase

money AMA-approved mortgages onowner-occupied single-family housingthat consists of mortgages for low-income families shall meet or exceedthe share of such mortgages in themarket as defined in paragraph (b) of this section.

(d) Low-income areas housing goal.For a Bank that is subject to the housinggoals, the percentage share of suchBank’s total purchases of purchasemoney AMA-approved mortgages onowner-occupied single-family housingthat consists of mortgages for families inlow-income areas shall meet or exceedthe share of such mortgages in the

market as defined in paragraph (b) of this section.

(e) Very low-income families housing goal. For a Bank that is subject to thehousing goals, the percentage share of such Bank’s total purchases of purchasemoney AMA-approved mortgages onowner-occupied single-family housingthat consists of mortgages for very low-income families shall meet or exceedthe share of such mortgages in themarket as defined in paragraph (b) of this section.

(f) Refinancing housing goal. For aBank that is subject to the housing goals,

the percentage share of such Bank’s totalpurchases of refinancing AMA-approved mortgages on owner-occupiedsingle-family housing that consists of refinancing mortgages for low-incomefamilies shall meet or exceed the shareof such mortgages in the market asdefined in paragraph (b) of this section.

§ 1281.12 General counting requirements.

(a) Calculating the numerator and denominator for the housing goals.Performance under each of the housinggoals shall be measured using a fraction





that is converted into a percentage.Neither the numerator nor thedenominator shall include Banktransactions or activities that are notAMA-approved mortgage purchases asdefined by FHFA or that are specificallyexcluded as ineligible under§ 1281.13(b).

(1) The numerator. The numerator of

each fraction is the number of AMA-approved mortgage purchases of a Bankin a particular year that finance owner-occupied single-family properties thatcount toward achievement of aparticular housing goal.

(2) The denominator. Thedenominator of each fraction is the totalnumber of AMA-approved mortgagepurchases of a Bank in a particular yearthat finance owner-occupied, single-family properties. A separatedenominator shall be calculated forpurchase money mortgages and forrefinancing mortgages.

(b) Missing data or information for thehousing goals.—(1) When a Bank lackssufficient data or information todetermine whether the purchase of amortgage originated after 1992 countstoward achievement of a particularhousing goal, that mortgage purchaseshall be included in the denominator forthat housing goal and shall not beincluded in the numerator for thathousing goal.

(2) Mortgage purchases financingowner-occupied single-family propertiesshall be evaluated based on the incomeof the mortgagors and the area median

income at the time the mortgage wasoriginated. To determine whethermortgages may be counted under aparticular family income level (i.e., low-or very low-income), the income of themortgagors is compared to the medianincome for the area at the time of themortgage application, using theappropriate percentage factor providedunder §1281.1.

(c) Credit toward multiple goals. Amortgage purchase by a Bank in aparticular year shall count toward theachievement of each housing goal forwhich such purchase qualifies in thatyear.

(d) Application of median income.For purposes of determining an area’smedian income under §1281.1, the areais:

(1) The metropolitan area, if theproperty which is the subject of themortgage is in a metropolitan area; and

(2) In all other areas, the county inwhich the property is located, exceptthat where the State nonmetropolitanmedian income is higher than thecounty’s median income, the area is theState nonmetropolitan area.

(e) Sampling not permitted.Performance under the housing goals foreach year shall be based on a completetabulation of mortgage purchases forthat year; a sampling of such purchasesis not acceptable.

(f) Newly available data. When a Bankuses data to determine whether amortgage purchase counts toward

achievement of any housing goal, andnew data is released after the start of acalendar quarter, the Bank need not usethe new data until the start of thefollowing quarter.

§ 1281.13 Special counting requirements.

(a) General. FHFA shall determinewhether a Bank shall receive full,partial, or no credit toward achievementof any of the housing goals for atransaction that otherwise qualifiesunder this part.

(b) Not counted. The followingtransactions or activities shall not be

counted for purposes of the housinggoals and shall not be included in thenumerator or the denominator incalculating a Bank’s performance underthe housing goals, even if thetransaction or activity would otherwise

be counted under paragraph (c) of thissection:

(1) Purchases of non-conventionalsingle-family mortgages;

(2) Commitments to buy mortgages ata later date or time;

(3) Options to acquire mortgages;(4) Rights of first refusal to acquire

mortgages;(5) Any interests in mortgages that the

Director determines, in writing, shallnot be treated as interests in mortgages;

(6) Mortgage purchases to the extentthey finance any dwelling units that aresecondary residences;

(7) Single-family refinancingmortgages that result from conversion of

balloon notes to fully amortizing notes,if a Bank already owns, or has aninterest in, the balloon note at the timeconversion occurs;

(8) Purchases of subordinate lienmortgages (second mortgages);

(9) Purchases of mortgages that werepreviously counted by a Bank under any

current or previous housing goal withinthe five years immediately precedingthe current performance year;

(10) Purchases of mortgages where theproperty has not been approved foroccupancy; and

(11) Any combination of factors inparagraphs (b)(1) through (b)(10) of thissection.

(c) Other special rules. Subject toFHFA’s determination of whether aBank shall receive full, partial, or nocredit for a transaction towardachievement of any of the housing goals

as provided in paragraph (a) of thissection, the transactions and activitiesidentified in this paragraph (c) shall betreated as mortgage purchases asdescribed. A transaction or activity thatis covered by more than one paragraph

below must satisfy the requirements of each such paragraph. The mortgagesfrom each such transaction or activity

shall be included in the denominator incalculating a Bank’s performance underthe housing goals, and shall be includedin the numerator, as appropriate.

(1) Cooperative housing and condominiums. The purchase by a Bankof a mortgage on a cooperative housingunit (‘‘a share loan’’) or a mortgage on acondominium unit shall be treated as amortgage purchase for purposes of thehousing goals.

(2) Seasoned mortgages. The purchaseof a seasoned mortgage by a Bank shall

be treated as a mortgage purchase forpurposes of the housing goals, except

where the Bank has already counted themortgage under any current or previoushousing goal within the five yearsimmediately preceding the currentperformance year.

(3) Purchase of refinancing mortgages.The purchase of a refinancing mortgage

by a Bank shall be treated as a mortgagepurchase for purposes of the housinggoals only if the refinancing is an arms-length transaction that is borrower-driven.

(d) HOEPA mortgages and mortgageswith unacceptable terms or conditions.The purchase by a Bank of HOEPAmortgages and mortgages with

unacceptable terms or conditions, asdefined in §1281.1, shall be treated asmortgage purchases for purposes of thehousing goals and shall be included inthe denominator for each applicablehousing goal, but such mortgages shallnot be counted in the numerator for anyhousing goal.

(e) FHFA review of transactions.FHFA may determine whether and howany transaction or class of transactionsshall be counted for purposes of thehousing goals. FHFA will notify eachBank in writing of any determinationregarding the treatment of any

transaction or class of transactionsunder the housing goals.

§ 1281.14 Determination of compliancewith housing goals; notice of determination.

(a) Determination of compliance withhousing goals. On an annual basis, theDirector shall determine whether eachBank has exceeded the volumethreshold. For each Bank that hasexceeded the volume threshold in ayear, the Director shall determine theBank’s performance under each housinggoal.





(b) Failure to meet a housing goal. If the Director determines that a Bank hasfailed to meet any housing goal, theDirector shall notify the Bank in writingof such preliminary determination. Anynotification to a Bank of a preliminarydetermination under this section shallprovide the Bank with an opportunity torespond in writing in accordance with

the following procedures:(1) Notice. The Director shall provide

written notice to a Bank of a preliminarydetermination under this section, thereasons for such determination, and theinformation on which the Director basedthe determination.

(2) Response period.—(i) In general.During the 30-day period beginning onthe date on which notice is providedunder paragraph (b)(1) of this section,the Bank may submit to the Director anywritten information that the Bankconsiders appropriate for consideration

by the Director in finally determining

whether such failure has occurred orwhether the achievement of such goalwas feasible.

(ii) Extended period. The Directormay extend the period under paragraph(b)(2)(i) of this section for good cause fornot more than 30 additional days.

(iii) Shortened period. The Directormay shorten the period under paragraph(b)(2)(i) of this section for good cause.

(iv) Failure to respond. The failure of a Bank to provide information duringthe 30-day period under this paragraph(b)(2), as extended or shortened, shallwaive any right of the Bank to comment

on the proposed determination or actionof the Director.(3) Consideration of information and

final determination. (i) In general. Afterthe expiration of the response periodunder paragraph (b)(2) of this section orreceipt of information provided duringsuch period by a Bank, the Directorshall issue a final determination on:

(A) Whether the Bank has failed tomeet the housing goal; and

(B) Whether, taking into considerationmarket and economic conditions andthe financial condition of the Bank, theachievement of the housing goal was

feasible.(ii) Considerations. In making a finaldetermination under paragraph (b)(3)(i)of this section, the Director shall takeinto consideration any relevantinformation submitted by a Bank duringthe response period.

§ 1281.15 Housing plans.

(a) Housing plan requirement. If theDirector determines that a Bank hasfailed to meet any housing goal and thatthe achievement of the housing goal wasfeasible, the Director may require the

Bank to submit a housing plan forapproval by the Director.

(b) Nature of plan. If the Directorrequires a housing plan, the housingplan shall:

(1) Be feasible;(2) Be sufficiently specific to enable

the Director to monitor complianceperiodically;

(3) Describe the specific actions thatthe Bank will take to achieve thehousing goal for the next calendar year;and

(4) Address any additional mattersrelevant to the plan as required, inwriting, by the Director.

(c) Deadline for submission. The Bankshall submit the housing plan to theDirector within 45 days after issuance of a notice requiring the Bank to submit ahousing plan. The Director may extendthe deadline for submission of a plan, inwriting and for a time certain, to theextent the Director determines anextension is necessary.

(d) Review of housing plan. TheDirector shall review and approve ordisapprove a housing plan as follows:

(1) Approval. The Director shallreview each submission by a Bank,including a housing plan submittedunder this section and, not later than 30days after submission, approve ordisapprove the plan or other action. TheDirector may extend the period forapproval or disapproval for a singleadditional 30-day period if the Directordetermines it necessary. The Directorshall approve any plan that the Directordetermines is likely to succeed, and

conforms with the Bank Act, this part,and any other applicable provision of law.

(2) Notice of approval and disapproval. The Director shall providewritten notice to a Bank submitting ahousing plan of the approval ordisapproval of the plan, which shallinclude the reasons for any disapprovalof the plan, and of any extension of theperiod for approval or disapproval.

(e) Resubmission. If the Directordisapproves an initial housing plansubmitted by a Bank, the Bank shallsubmit an amended plan acceptable to

the Director not later than 15 days afterthe Director’s disapproval of the initialplan; the Director may extend thedeadline if the Director determines anextension is in the public interest. If theamended plan is not acceptable to theDirector, the Director may afford theBank 15 days to submit a new plan.

(f) Enforcement of housing plan. If theDirector finds that a Bank has failed tomeet any housing goal, and that theachievement of the housing goal wasfeasible, and has required the Bank tosubmit a housing plan under this

section, the Director may issue a ceaseand desist order, or impose civil moneypenalties, if the Bank refuses to submitsuch a plan, fails to submit anacceptable plan, or fails to comply withthe approved plan. In taking suchaction, the Director shall followprocedures consistent with thoseprovided in 12 U.S.C. 4581 through

4588 with respect to actions to enforcethe housing goals.

Subpart C—Reporting Requirements

§1281.20 General.

This subpart establishes datasubmission and reporting requirementsto provide the Director with mortgageand other information relating to theBanks’ performance in connection withthe housing goals, as supplementedfrom time to time in the Banks’ DataReporting Manual (DRM).

§ 1281.21 Mortgage Reports.

(a) Loan-level data elements. Toimplement the data collection andsubmission requirements for mortgagedata, and to assist the Director inmonitoring the Banks’ housing goalactivities, each Bank shall collect andcompile computerized loan-level dataon each AMA-approved mortgagepurchase, as described in the DRM. TheDirector may, from time to time, issuea list in the DRM specifying the loan-level data elements to be collected andmaintained by the Banks and providedto the Director. The Director may revisethe DRM list by written notice to the

Banks.(b) Semi-annual Mortgage Reports.

Each Bank shall submit to the Director,on a semi-annual basis, a MortgageReport. The second semi-annualMortgage Report each year shall serve asthe annual Mortgage Report and shall bedesignated as such. Each MortgageReport shall include:

(1) Aggregations of the loan-levelmortgage data compiled by each Bankunder paragraph (a) of this section foryear-to-date AMA-approved mortgagepurchases, in the format specified inwriting by the Director;

(2) Year-to-date dollar volume,number of units, and number of AMA-approved mortgages on owner-occupiedproperties purchased by each Bank thatdo, and do not, qualify under eachhousing goal as set forth in this part;and

(3) Year-to-date computerized loan-level data consisting of the dataelements required under paragraph (a)of this section.

(c) Timing of Reports. Each Bank shallsubmit its first semi-annual MortgageReport within 45 days of the end of the





second quarter. Each Bank shall submitits annual Mortgage Report within 60days after the end of the calendar year.

(d) Revisions to Reports. At any time before submission of its annualMortgage Report, a Bank may revise itsfirst semi-annual Mortgage Report forthat year.

(e) Format. The Banks shall submit tothe Director computerized loan-leveldata with the Mortgage Report, in theformat specified in writing by theDirector.

§ 1281.22 Periodic reports.

Each Bank shall provide to theDirector such reports, information anddata as the Director may request fromtime to time, or as may be supplementedin the DRM.

§ 1281.23 Bank data integrity.

(a) Certification. (1) The senior officerof each Bank who is responsible forsubmitting the annual Mortgage Report,or for submitting any other report(s),data or other information for whichcertification is requested in writing bythe Director, shall certify such report(s),data or information.

(2) The certification shall state asfollows: ‘‘To the best of my knowledgeand belief, the information providedherein is true, correct and complete.’’

(b) Adjustment to correct errors,omissions or discrepancies. FHFA shalldetermine on an annual basis theofficial housing goals performancefigures for a Bank that is subject to thehousing goals. FHFA may resolve anyerror, omission or discrepancy byadjusting the Bank’s official housinggoals performance figure. If the Directordetermines that the year-end datareported by a Bank for a year precedingthe latest year for which data onhousing goals performance was reportedto FHFA contained a material error,omission or discrepancy, the Directormay increase the corresponding housinggoal for the current year by the number

of mortgages that the Directordetermines were overstated in the prioryear’s goal performance.

Dated: December 20, 2010.

Edward J. DeMarco,

Acting Director, Federal Housing FinanceAgency.

[FR Doc. 2010–32350 Filed 12–23–10; 8:45 am]


DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA–2010–0354 AirspaceDocket No. 10–AAL–10]

Establishment of Class E Airspace;

Port Clarence, AK

AGENCY: Federal AviationAdministration (FAA), DOT.ACTION: Final rule; correction.

SUMMARY: This action corrects errors inthe legal description and airportcoordinates for Port Clarence CoastGuard Station (CGS) Airport, PortClarence, AK, contained in a final rulethat was published in the FederalRegister.

DATES: Effective date 0901 UTC, January13, 2011.FOR FURTHER INFORMATION CONTACT

:Martha Dunn, AAL–538G, FederalAviation Administration, 222 West 7thAvenue, Box 14, Anchorage, AK 99513–7587; telephone number (907) 271–5898; fax: (907) 271–2850; e-mail:[email protected]. Internetaddress: http://www.faa.gov/about/ office _org/headquarters _offices/ ato.service _units/systemops/fs/alaskan/ rulemaking/. SUPPLEMENTARY INFORMATION:

History

Federal Register Document FAA–2010–0354, Airspace Docket No.

10–AAL–10, published on Tuesday,October 12, 2010 [75 FR 62457]establishes Class E airspace at PortClarence CGS Airport, Port Clarence,AK. The airspace description referred tothe Anchorage Arctic CTA/FIR

boundary as a limitation of the western boundary of the Class E airspace area.This reference is in error and iscorrected by substituting the actualcoordinates of the boundary. The airportreference point coordinates alsocontained an error caused by rounding.This action corrects that error. Thecorrect full legal description is provided

below.Correction to Final Rule

■ Accordingly, pursuant to the authoritydelegated to me, the Class E airspacelegal description for Port Clarence CGSAirport, published in the FederalRegister, Tuesday, October 12, 2010(75 FR 62457), FR Doc 2010–25479,page 62458, column 2 is corrected asfollows:

AAL AK E5 Port Clarence, AK [Corrected]

Port Clarence, CGS Airport, AK

(Lat. 65°15′12″ N., Long. 166°51′27″ W.)

That airspace extending upward from 700feet above the surface within a 6.4-mileradius of the Port Clarence CGS Airport, AKand within 1.5 miles either side of the 180°

bearing from the Port Clarence CGS Airport,extending from the 6.4-mile radius to 13.2miles south of the Port Clarence CGS Airport;and that airspace extending upward from1,200 feet above the surface within a 73 mileradius of the Port Clarence CGS Airport, AK,excluding that portion extending west of aline from Lat. 64°48′20″ N., Long. 169°31′27″ W., to Lat. 60°00′00″ N., Long. 168°58′23″ W.,to Lat. 66°05′44″ N., Long. 168°58′23″ W.

Issued in Anchorage, AK, on December 13,2010.

James M. Miller,

Acting Manager, Alaska Flight ServicesInformation Area Group.

[FR Doc. 2010–32293 Filed 12–23–10; 8:45 am]


DEPARTMENT OF COMMERCE

National Oceanic and AtmosphericAdministration

15 CFR Part 950

[Docket No. 090113018–9019–01]

RIN 0648–AX74

Schedule of Fees for Access to NOAAEnvironmental Data, Information, andRelated Products and Services

AGENCY: National EnvironmentalSatellite, Data and Information Service

(NESDIS), National Oceanic andAtmospheric Administration (NOAA),Department of Commerce.

ACTION: Final rule.

SUMMARY: In this final rule, NESDISestablishes a new schedule of fees forthe sale of its data, information, andrelated products and services to users.NESDIS is revising the fee schedule toensure that the fees accurately reflectthe costs of providing access to theenvironmental data, information, andrelated products and services. NESDISis authorized under 15 U.S.C. 1534 to

assess fees, up to fair market value, foraccess to environmental data,information, and products derived from,collected, and/or archived by NOAA.Other than depreciation, costs toupgrade computer hardware andsoftware systems will not be included inthe fees charged to users.

DATES: Effective Date: February 28,2011.

FOR FURTHER INFORMATION CONTACT:Angel Robinson (301) 713–9230 ext 186.

SUPPLEMENTARY INFORMATION:

mailto:[email protected]

http://www.faa.gov/about/office_org/headquarters_offices/ato.service_units/systemops/fs/alaskan/rulemaking/










mailto:[email protected]





FHFA Final Rule

Documents

Transcript of FHFA Final Rule