Notice of Order: Revisions to Enterprise Public Use Database, 41180-41201 [2010-17119]
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SUMMARY: Section 1323(a)(1) of the
Federal Housing Enterprises Financial
Safety and Soundness Act of 1992
STATUS: This meeting will be closed to
(Safety and Soundness Act), as
the public.
amended, requires the Federal Housing
ITEMS TO BE DISCUSSED: Compliance
Finance Agency (FHFA) to make
matters pursuant to 2 U.S.C. 437g.
available to the public the nonAudits conducted pursuant to 2 U.S.C.
proprietary single-family and
437g, 438(b), and Title 26, U.S.C.
multifamily loan-level mortgage data
Matters concerning participation in civil
elements submitted to FHFA by the
actions or proceedings or arbitration.
Federal National Mortgage Association
Internal personnel rules and procedures
(Fannie Mae) and the Federal Home
or matters affecting a particular
Loan Mortgage Corporation (Freddie
employee.
Mac) (collectively, the Enterprises) in
*
*
*
*
*
their mortgage reports required under
DATE AND TIME: Thursday, July 15, 2010,
their charter acts. This responsibility to
at 10 a.m.
maintain a public use database (PUDB)
for such mortgage data was transferred
PLACE: 999 E Street, NW., Washington,
to FHFA from the U.S. Department of
DC (ninth floor).
Housing and Urban Development (HUD)
STATUS: This meeting will be open to the
pursuant to sections 1122, 1126 and
public.
1127 of the Housing and Economic
ITEMS TO BE DISCUSSED: Correction and
Recovery Act of 2008 (HERA), and was
Approval of Minutes.
expanded to include data elements
Draft Advisory Opinion 2010–09:
required to be reported under the Home
Club for Growth, by its counsel, Carol A. Mortgage Disclosure Act of 1975
Laham, Esq., and D. Mark Renaud, Esq., (HMDA).
of Wiley Rein LLP.
Specifically, section 1126 of HERA
Draft Advisory Opinion 2010–10:
amended section 1323 of the Safety and
National Right to Life Political Action
Soundness Act by requiring that the
Committee, by its counsel, Barry A.
Enterprises’ mortgage reports include
Bostrom, Esq., James Bopp, Jr., Esq., and the data elements required to be
Zachary S. Kester, Esq., of Bopp,
reported under HMDA at the census
Coleson & Bostrom.
tract level, and that such data elements
Draft Advisory Opinion 2010–11:
be disclosed to the public. In addition,
Commonsense Ten, by its counsel, Marc section 1127 of HERA amended section
E. Elias, Esq., and Ezra Reese, Esq., of
1326 of the Safety and Soundness Act
Perkins Coie LLP.
by requiring that, subject to privacy
Management and Administrative
considerations as described in section
Matters.
304(j) of HMDA, the Director of FHFA
Individuals who plan to attend and
shall, by regulation or order, provide
require special assistance, such as sign
that certain information relating to
language interpretation or other
single-family mortgage data of the
reasonable accommodations, should
Enterprises shall be disclosed to the
contact Darlene Harris, Deputy
public in order to make available to the
Commission Secretary, at (202) 694–
public—(1) the same data from the
1040, at least 72 hours prior to the
Enterprises that is required of insured
hearing date.
depository institutions under HMDA;
and (2) information collected by the
PERSON TO CONTACT FOR INFORMATION:
Judith Ingram, Press Officer; Telephone: Director of FHFA under section
1324(b)(6) of the Safety and Soundness
(202) 694–1220.
Act, as amended, for the purpose of
Shawn Woodhead Werth,
comparing the characteristics of highSecretary and Clerk of the Commission.
cost securitized loans.
[FR Doc. 2010–17052 Filed 7–14–10; 8:45 am]
FHFA provided each Enterprise with
an opportunity to review and comment
BILLING CODE 6715–01–M
on FHFA’s proposed revisions to the
single-family and multifamily PUDB
matrices which describe the data fields
FEDERAL HOUSING FINANCE
provided in the PUDB. FHFA has taken
AGENCY
the Enterprises’ comments into
[No. 2010–N–10]
consideration, and has adopted an
Order that implements certain changes
Notice of Order: Revisions to
required by HERA to the Enterprises’
Enterprise Public Use Database
mortgage loan data reporting and the
disclosure of such data in the PUDB.
AGENCY: Federal Housing Finance
The Order also makes technical changes
Agency.
to the single-family and multifamily
ACTION: Notice of order.
data matrices of the PUDB to conform
PLACE:
999 E Street, NW., Washington,
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DC.
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the data fields to long-standing PUDB
data reporting practice, to provide
greater clarity, or to conform to the new
statutory requirements. The Notice of
Order sets forth FHFA’s Order with
accompanying Appendix containing the
revised matrices, and describes the
changes made to the data fields in the
matrices. Changes to the PUDB matrices
required by HERA relating to high-cost
securitized loans, as well as the
Enterprise housing goals for 2010 and
beyond, will be implemented by the
issuance of subsequent Orders.
DATES: Effective Date of the Order: The
Order with accompanying Appendix is
effective on July 1, 2010.
FOR FURTHER INFORMATION CONTACT: For
questions on data or methodology,
contact Paul Manchester, Principal
Economist, Office of Housing Mission
and Goals, Quantitative Analysis and
Goals, 1625 Eye Street, NW.,
Washington, DC 20006, (202) 408–2946,
Paul.Manchester@fhfa.gov; or Ian Keith,
Program Analyst, 1625 Eye Street, NW.,
Washington, DC 20006, (202) 408–2949,
Ian.Keith@fhfa.gov. For legal questions,
contact Sharon Like, Associate General
Counsel, OGC–Housing Mission and
Goals, 1700 G Street, NW., Washington,
DC 20552, (202) 414–8950,
Sharon.Like@fhfa.gov. (These are not
toll-free numbers.) The telephone
number for the Telecommunications
Device for the Hearing Impaired is
(800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. Establishment of FHFA
Effective July 30, 2008, Division A of
HERA, Public Law 110–289, 122 Stat.
2654 (2008), amended the Safety and
Soundness Act and created FHFA as an
independent agency of the Federal
Government. HERA transferred the
safety and soundness supervisory and
oversight responsibilities over the
Enterprises, the Federal Home Loan
Banks (Banks), and the Office of Finance
from the Office of Federal Housing
Enterprise Oversight (OFHEO) and the
Federal Housing Finance Board,
respectively, to FHFA. HERA also
transferred the charter compliance
authority, the responsibility to establish,
monitor and enforce the affordable
housing goals, the responsibility to
maintain the PUDB, and the
responsibility to oversee Enterprise data
reporting, from HUD to FHFA.
FHFA is responsible for ensuring that
the Enterprises operate in a safe and
sound manner, including maintenance
of adequate capital and internal
controls, that their operations and
activities foster liquid, efficient,
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competitive, and resilient national
housing finance markets, and that they
carry out their public policy missions
through authorized activities. See 12
U.S.C. 4513.
The Enterprises are governmentsponsored enterprises (GSEs) chartered
by Congress for the purpose of
establishing secondary market facilities
for residential mortgages. See 12 U.S.C.
1716 et seq.; 12 U.S.C. 1451 et seq.
Specifically, Congress established the
Enterprises to provide stability in the
secondary market for residential
mortgages, respond appropriately to the
private capital market, provide ongoing
assistance to the secondary market for
residential mortgages, and promote
access to mortgage credit throughout the
nation. Id.
On September 6, 2008, the Director of
FHFA appointed FHFA as conservator
of the Enterprises in accordance with
the Safety and Soundness Act, as
amended by HERA, to maintain the
Enterprises in a safe and sound financial
condition and to help assure
performance of their public mission.
The Enterprises remain under
conservatorship at this time.
B. Statutory Requirements
Section 1323(a)(1) of the Safety and
Soundness Act, as amended, 12 U.S.C.
4543(a)(1), requires the Director of
FHFA (Director) to make available to the
public the non-proprietary data
submitted by Fannie Mae and Freddie
Mac in their mortgage reports required
under section 309(m) of the Federal
National Mortgage Association Charter
Act, as amended, 12 U.S.C. 1723a(m),
and section 307(e) of the Federal Home
Loan Mortgage Corporation Act, as
amended, 12 U.S.C. 1456(e),
respectively (hereafter, Charter Acts).
The Enterprises are required to collect,
maintain and provide to FHFA in these
mortgage reports data relating to their
single-family and multifamily mortgage
purchases (e.g., income, census tract
location, race and gender of mortgagors).
The responsibility to maintain a PUDB
for mortgage data was transferred from
HUD to FHFA pursuant to sections
1122, 1126, and 1127 of HERA.
Section 1126 of HERA also amended
section 1323 of the Safety and
Soundness Act by adding a new
paragraph (a)(2) which requires that
such data submitted by the Enterprises
in their mortgage reports shall include
the data elements required to be
reported under HMDA, 12 U.S.C. 2801
et seq., at the census tract level. 12
U.S.C. 4543(a)(2). FHFA construes this
language in section 1323(a)(2) to require
the Enterprises to submit for inclusion
in the PUDB HMDA mortgage data
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elements that the Enterprises are
currently collecting as part of their
established mortgage-purchasing
activities. Section 1323(a) does not
contain a mandate that the Enterprises
modify their seller-servicer agreements
to collect additional data solely for the
purpose of populating the PUDB. While
it might be within the scope of statutory
discretion for the agency to administer
this provision in that way, the
Enterprises are currently operating in
conservatorship and it would not
further the purposes of their
conservatorship to do so.
Section 1323(b)(1) states that, except
as provided in paragraph (b)(2), the
Director may not make available to the
public Enterprise data that the Director
determines under section 1326 are
proprietary. Section 1323(b)(2), as
amended, provides that the Director
shall not restrict public access to the
data in the Enterprise reports related to
income, census tract location, race, and
gender of single-family mortgagors, or to
the data required to be reported under
HMDA at the census tract level. See 12
U.S.C. 4543(b)(1), 4543(b)(2), 4546.
Consistent with the amendments to
section 1323, section 1127 of HERA
amended section 1326 of the Safety and
Soundness Act by adding a new
paragraph (d) which states that, subject
to the privacy restrictions described in
section 304(j) of HMDA,1 the Director
shall make public certain information
relating to single-family mortgage data
of the Enterprises: (1) the same data
from the Enterprises that is required of
insured depository institutions under
HMDA; and (2) information collected by
the Director under section 1324(b)(6).
See 12 U.S.C. 4544(b)(6), 4546(d).
Section 1324(b)(6), in turn, part of a
section describing the contents of
FHFA’s Annual Housing Activities
Report (AHAR) to Congress, requires
FHFA to compare ‘‘the characteristics of
high-cost loans purchased and
securitized by each Enterprise where
such securities are not held on portfolio,
to loans purchased and securitized
where such securities are either retained
on portfolio or repurchased by the
Enterprise, including such
characteristics as—(A) The purchase
price of the property that secures the
1 Section 304(j) of HMDA addresses Loan
Application Register (LAR) information and
describes, among other things, the manner in which
an applicant’s privacy interests are to be protected
in response to a request for disclosure from the
public, including removal of the applicant’s name
and identification number, the date of the
application, and the date of any determination by
the institution with respect to such application. In
addition, the disclosure of information must ensure
that depository institutions are protected from
liability under any Federal or State privacy laws.
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mortgage; (B) the loan-to-value ratio of
the mortgage, which shall reflect any
secondary liens on the relevant
property; (C) the terms of the mortgage;
(D) the creditworthiness of the
borrower; and (E) any other relevant
data, as determined by the Director.’’
FHFA is continuing to assess the
mortgage data elements that are needed
to implement section 1324(b)(6), and
will issue a subsequent Order,
applicable to the PUDB for 2009, that
implements this section after it has
completed its analysis.2
Section 1323, as amended, also
includes a new paragraph (d) which
states that data submitted under this
section by an Enterprise shall be made
publicly available no later than
September 30 of the year following the
year to which the data relates. 12 U.S.C.
4543(d).3
C. Description of Enterprise Reporting
and PUDB Matrices
From 1993 to 2005, HUD took a
number of regulatory and administrative
actions to establish and maintain a
PUDB, and to withhold from disclosure
in the PUDB certain Enterprise mortgage
data that HUD had determined to be
proprietary information and to release to
the public Enterprise mortgage data that
HUD had determined to be nonproprietary. FHFA’s revisions discussed
in this Notice of Order have been made
to the PUDB matrices as set forth in
HUD’s October 4, 2004 Final Order. See
69 FR 59476. The PUDB matrices are
data dictionaries, attached as an
Appendix to this Notice of Order, which
describe the data fields provided in the
public release of the data in the PUDB.
The PUDB contains Enterprise singlefamily and multifamily mortgage loanlevel data, including data elements that
have been determined to lose their
proprietary character when categorized
in ranges or otherwise adjusted or
recoded. For single-family mortgage
data, there are three separate files: a
Census Tract File that identifies the
census tract location of the mortgaged
properties; a National File A containing
loan-level data on owner-occupied oneunit properties but without census tract
identifiers; and a National File B
containing unit-level data on all singlefamily properties without census tract
2 HERA also revised the Enterprises’ housing
goals for 2010 and subsequent years. FHFA will
issue a subsequent Order, applicable to the PUDB
for 2010, that revises the applicable data fields in
the PUDB matrices to reflect HERA’s changes to the
Enterprise housing goals.
3 The release of the 2008 PUDB was delayed due
to the transfer of authority to release the data to the
public from HUD to FHFA and technical and
operational issues raised by the new HERA data
reporting requirements.
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identifiers. For multifamily data, there
are two separate files: a Census Tract
File that identifies the census tract
location of the mortgaged properties;
and a National File that does not
identify the location of the mortgaged
properties but contains mortgage-level
data and unit class-level data on all
multifamily properties.
II. Proposed Revisions to the PUDB
Matrices
To determine the appropriate
treatment of the newly required data
elements for purposes of the PUDB,
FHFA asked each Enterprise to indicate
whether it is collecting the following
mortgage purchase data and, if so, to
provide such data to FHFA for inclusion
in the PUDB: (1) Single-family property
type; (2) multifamily lien status; (3)
multifamily borrower race or national
origin 1–5; (4) multifamily co-borrower
race or national origin 1–5; (5)
multifamily borrower ethnicity; (6)
multifamily co-borrower ethnicity; (7)
multifamily borrower gender; (8)
multifamily co-borrower gender; (9)
multifamily rate spread; and (10)
multifamily HOEPA status.4 In response
to FHFA’s request, the Enterprises
provided FHFA with single-family
property type and multifamily lien
status data. The Enterprises did not
provide the other information requested,
which they stated they do not collect.
FHFA also provided both Enterprises
with an opportunity to review and
comment on FHFA’s proposed revisions
to the single-family and multifamily
PUDB matrices. In addition, FHFA
stated that it would consider any
assertions by the Enterprises that the
release of a specific data field would
result in the release of their proprietary
data, and would make a determination
on this matter in accordance with
applicable statutory and regulatory
requirements. However, data fields that
are required to be reported under
HMDA at the census tract level,
pursuant to section 1323(a)(2) of the
Safety and Soundness Act, as amended,
are not subject to regulatory and
statutory processes for proprietary
determinations that might otherwise
apply to the release of such data since
the disclosure of these data is explicitly
required by statute.
Both Enterprises provided comments
on a number of the proposed data field
revisions, which are discussed in
Sections IV. and V. below under the
applicable data fields. Certain data
4 A HOEPA mortgage is a mortgage covered by
section 103(aa) of the Home Ownership Equity
Protection Act (HOEPA) (15 U.S.C. 1602(aa)), as
implemented by the Board of Governors of the
Federal Reserve System.
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fields that FHFA originally considered
including in the PUDB, but which it has
subsequently decided to omit, are
discussed in Section V.
III. Summary of Order’s Treatment of
HMDA and Other Data Elements in the
PUDB
Following is a summary of the
changes made to the PUDB matrices to
conform to the HMDA data elements,
and other technical changes made to
data elements in the PUDB matrices, as
provided in FHFA’s Order. The changes
take into account FHFA’s analysis of the
applicable statutory provisions and
FHFA’s determinations with respect to
the Enterprises’ comments on the
proposed revisions to the matrices. A
more detailed discussion of the changes
is contained in Section IV. below.
A. Expanded Values or Changes in
Descriptions of Data Fields in the PUDB
Matrices
To conform to HMDA reporting
requirements, FHFA has expanded the
values (i.e., codes) or changed the
descriptions of the following data fields
in the PUDB matrices: single-family and
multifamily Enterprise flag; singlefamily and multifamily purpose of loan;
and single-family and multifamily
Federal guarantee.
B. New Data Fields in the PUDB
Matrices
As discussed above, FHFA construes
section 1323(a)(2) to require the
Enterprises to submit for inclusion in
the PUDB HMDA mortgage data
elements that the Enterprises are
currently collecting. Accordingly, FHFA
has added new data fields for these
HMDA data elements as separate data
fields in the PUDB matrices. In addition,
as previously noted, FHFA currently is
reviewing the data reporting
requirements in connection with the
high-cost securitized loans analysis that
the Director is required to conduct, and
upon completion of that review, will
issue a new Order requiring the
Enterprises to submit such data, as
specified by FHFA, for inclusion in the
PUDB for 2009.
Specifically, FHFA has added the
following new data fields in the PUDB
matrices for HMDA data elements that
are currently collected and reported by
the Enterprises but which had been
coded differently in the PUDB: singlefamily borrower race or national origin
1–5; single-family co-borrower race or
national origin 1–5; single-family
borrower ethnicity; single-family coborrower ethnicity; and single-family
lien status.
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FHFA has added the following new
data fields in the PUDB matrices for
HMDA data elements that are currently
collected and reported by the
Enterprises but which had not
previously been included in the PUDB:
single-family rate spread; single-family
HOEPA status; and multifamily lien
status (previously reported by Freddie
Mac only).
FHFA has also added a new data field
for single-family property type, which is
currently collected but which had not
previously been reported by the
Enterprises.
C. HMDA Data Elements Not
Incorporated in the PUDB Pursuant to
HMDA Section 304(j)
Consistent with section 304(j) of
HMDA, the PUDB does not disclose
personally identifiable information (PII)
contained in loan data reported by the
Enterprises to FHFA. FHFA does not
receive the applicant’s name,
identification number, or date of loan
application from the Enterprises. FHFA
does receive the date of the mortgage
note, which is equivalent to the HMDA
‘‘action date’’ for an originated loan, but
FHFA does not release this information
in the PUDB files with the exception of
single-family National File B where it is
released in data field 20 in an
aggregated form to protect PII.
D. HMDA Data Elements Not
Incorporated in the PUDB as
Inapplicable
The following HMDA data elements
have not been incorporated in the PUDB
because they are inapplicable to
Enterprise mortgage purchases: as of
year; preapproval; action type;
purchaser type; denial reason 1–3; edit
status; application date prior 2004 flag;
multifamily occupancy; and multifamily
type of property.
E. Technical Revisions to Data Elements
in the PUDB Matrices
FHFA has made technical revisions to
the following data fields in the PUDB
matrices to conform the data fields to
long-standing PUDB data reporting
practice or provide greater clarity: loan
number; MSA code; county-2000
census; census tract-2000 Census; 2000
census tract-percent minority; 2000
census tract-median income; 2000 local
area median income; area median family
income; borrower income ratio; ‘‘special
affordable, seasoned loan: are proceeds
recycled?’’; single-family Federal
guarantee; type of seller institution; and
acquisition type.
FHFA has made technical revisions to
the following data fields and references
in the PUDB matrices to conform to the
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new statutory requirements: borrower’s
(or borrowers’) annual income; and
single-family and multifamily
acquisition unpaid principal balance
(UPB).
F. Proposed Data Elements Not Included
in the PUDB
The following data elements are not
currently collected by the Enterprises,
and FHFA is not requiring that they be
collected and reported for inclusion in
the PUDB: multifamily borrower and coborrower race or national origin;
multifamily borrower and co-borrower
ethnicity; multifamily borrower and coborrower gender; multifamily rate
spread; multifamily HOEPA status;
respondent ID; and agency code.
IV. Discussion of Revisions to PUDB
Matrices
To implement the HERA amendments
to sections 1323 and 1326 of the Safety
and Soundness Act, FHFA has adopted
an Order that revises the PUDB matrices
to incorporate the HMDA data elements
as applicable and requires the
Enterprises to submit data in accordance
with the revised matrices. The Order
also makes a number of technical
revisions to existing data fields in the
PUDB matrices to conform the data
fields to long-standing PUDB data
reporting practice, to provide greater
clarity, or to conform to the new
statutory requirements. The revised
matrices are included in an Appendix to
the Order. Both the Order and Appendix
are set forth at the end of this Notice of
Order. Single-family and multifamily
PUDB Data Dictionaries that further
describe the data fields will be made
available on FHFA’s public Web site at
https://www.fhfa.gov/
Default.aspx?Page=137.
FHFA’s changes to the single-family
and multifamily matrices are further
described below.
A. Expanded Values or Changed
Descriptions
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To conform to HMDA reporting
requirements, FHFA has expanded the
values (or codes) or changed the
descriptions of certain data fields in the
PUDB matrices, as further discussed
below.
1. Single-family and Multifamily Data
Field 0: Enterprise Flag
This data field designates whether the
mortgage was purchased by Fannie Mae
or Freddie Mac. FHFA has changed the
name of this data field from ‘‘agency
flag’’ to ‘‘Enterprise flag’’ to avoid
confusing this data field with HMDA’s
‘‘agency code’’ data field (which is the
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originating lender’s regulatory agency
code).
2. Single-family Data Field 22: Purpose
of Loan
This data field designates the purpose
of the mortgage acquired by the
Enterprise (e.g., purchase, refinancing,
rehabilitation). HMDA requires the
reporting of the purpose of a mortgage,
with one of the purpose codes being for
home improvement loans. Data field 22
included a code for ‘‘rehabilitation’’
loans, which FHFA believes are
substantially equivalent to home
improvement loans. Accordingly, to
conform to HMDA reporting
requirements, FHFA has changed the
code name in this data field from
‘‘rehabilitation’’ loan to ‘‘home
improvement/rehabilitation’’ loan. In
addition, to conform to HMDA reporting
requirements, FHFA has added codes in
this data field in the single-family
Census Tract File to reflect HMDA’s
additional purpose of loan codes. (See
the expanded codes in the single-family
matrix in the Appendix.) FHFA has
preserved the prior PUDB recoding in
this data field in the single-family
National File B. FHFA also has
expanded the codes in this data field to
enable the Enterprises to report second
mortgages and home improvement/
rehabilitation mortgages as purchase
money mortgages where applicable,
which allow the Enterprises to claim
appropriate credit under the 2005–2009
home purchase subgoals. Second
mortgages and home improvement/
rehabilitation mortgages identified as
purchase money mortgages will be
coded as ‘‘1=purchase’’ for the PUDB.
Fannie Mae asked whether a mortgage
with a ‘‘value of 4’’ = home
improvement/rehabilitation (purchase
mortgage) under the ‘‘purpose of loan’’
data field would be disclosed in the
PUDB as a ‘‘1 = purchase’’, or a ‘‘4 =
home improvement/rehabilitation’’
mortgage. FHFA is clarifying in this
Notice of Order that a mortgage with a
‘‘value of 4’’ will be disclosed in the
PUDB as a ‘‘purchase’’ mortgage in the
single-family files.
3. Multifamily Data Field 21: Purpose of
Loan
This data field designates the purpose
of the mortgage acquired by the
Enterprise (e.g., purchase, refinancing,
rehabilitation). For the reasons
discussed above for single-family data
field 22, FHFA has changed the
‘‘rehabilitation’’ loan purpose code in
this data field in the multifamily matrix
to ‘‘home improvement/rehabilitation’’
loan. To conform to HMDA reporting
requirements, FHFA has also added
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41183
codes in this data field in the
multifamily Census Tract File to reflect
HMDA’s additional purpose of loan
codes (see the expanded codes in the
multifamily matrix in the Appendix),
while recoding non-HMDA values as
‘‘not applicable/not available/other’’ for
the multifamily Census Tract File.
Fannie Mae commented that
multifamily loan purpose currently is
collected through one of four
acquisition systems, depending on the
transaction structure (e.g., acquisition,
refinance, equity, and conversion).
Fannie Mae indicated that when it
delivers this information to FHFA, it
identifies the loan purpose as purchase,
refinance, new construction,
rehabilitation or not applicable/not
available based on the loan purpose
provided by the seller, special feature
codes, and other information. Fannie
Mae stated that this process of reporting
the multifamily ‘‘purpose of loan’’ data
might cause some confusion for users
trying to align the HMDA data with the
PUDB data. Accordingly, users of the
PUDB and HMDA data should be aware
of the potential reporting discrepancy in
the purpose of loan data field in these
two databases.
4. Single-family Data Field 27 and
Multifamily Data Field 34: Federal
Guarantee
This data field identifies the source of
the Federal guarantee or insurance of
the loan acquired by the Enterprise.
Since 2001, the Enterprises have been
reporting loans insured or guaranteed by
the Federal Housing Administration,
Department of Veterans Affairs, and
Rural Housing Service using an
expanded set of values. To conform to
HMDA reporting requirements, FHFA
has expanded the codes in the singlefamily and multifamily Census Tract
Files to reflect HMDA’s additional
Federal loan guarantee or insurance
sources. (See the expanded codes in the
single-family and multifamily matrices
in the Appendix.) For single-family
National File A, single-family National
File B, and the multifamily National
File, FHFA has preserved the prior
PUDB recoding. The description for data
field 34 in the multifamily matrix has
also been changed from ‘‘Government
Insurance’’ to ‘‘Federal Guarantee’’ to be
consistent with the description in data
field 27 of the single-family matrix. A
technical revision has also been made to
this data field, as discussed under
Section IV.E. below.
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B. New Data Fields
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1. Data Elements Currently Collected
and Reported But Previously Coded
Differently in the PUDB
To conform to HMDA reporting
requirements, FHFA has added the
following new data fields to the PUDB
matrices for data elements that are
currently collected and reported by the
Enterprises but which had been coded
differently in the PUDB.
a. Single-family Data Fields 41a–41e:
Borrower Race or National Origin 1–5
These data fields identify the race or
national origin of the borrower of the
loan acquired by the Enterprise. Since
2004, the Enterprises have been
reporting single-family borrower race or
national origin in accordance with five
defined fields—borrower race1borrower race5—but the data was
included in a single race or national
origin field in the PUDB. The
Enterprises did not comment on these
data fields.
To conform to HMDA reporting
requirements, FHFA has incorporated
these five fields in the single-family
Census Tract File to reflect HMDA’s
borrower race or national origin fields.
(See the single-family matrix in the
Appendix for the specific codes that
apply to these data fields.) FHFA is
continuing to include the data as a
single data field in National Files A and
B, using an algorithm for collapsing the
five borrower race or national origin
fields and borrower ethnicity field to the
single field. The single data field in
National Files A and B is constructed as
follows:
i. If the borrower ethnicity field
indicates that the borrower is Hispanic
or Latino, then the single field’s value
indicates the value for ‘‘Hispanic or
Latino’’ regardless of race (consistent
with reporting prior to 2004);
ii. Otherwise, if a unique value within
borrower race1- borrower race5
indicates that the borrower is American
Indian or Alaskan Native, Asian, Black
or African American, Native Hawaiian
or Other Pacific Islander, or White, then
the single field’s value is that unique
value (this includes multiple selections
of that unique value);
iii. Otherwise, if the values within
borrower race1- borrower race5 indicate
that the borrower has selected more
than one of American Indian or Alaskan
Native, Asian, Black or African
American, Native Hawaiian or Other
Pacific Islander, or White, then the
single field’s value indicates ‘‘Two or
more races’’;
iv. Otherwise, the single field’s value
indicates ‘‘not available/not applicable’’
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(i.e., no indication of race or ethnicity
provided).
b. Single-family Data Field 41f:
Borrower Ethnicity
This new data field identifies the
ethnicity of the borrower of the loan
acquired by the Enterprise. The
Enterprises have been reporting singlefamily borrower ethnicity to FHFA, but
these data were previously included
under code 7 (Hispanic or Latino) in
data field 41 in the single-family PUDB
files and not as a separate data field.
The Enterprises did not comment on
this data field.
To conform to HMDA reporting
requirements for borrower ethnicity,
FHFA has added this data element as
new data field 41f in the single-family
Census Tract File. (See the single-family
matrix in the Appendix for the specific
codes that apply to this data field.)
c. Single-family Data Fields 42a–42e:
Co-Borrower Race or National Origin 1–
5
These data fields identify the race or
national origin of the co-borrower of the
loan acquired by the Enterprise. Since
2004, the Enterprises have been
reporting single-family co-borrower race
or national origin to FHFA in
accordance with five defined fields—coborrower race1- co-borrower race5—but
the data was included in a single race
or national origin field in the PUDB.
The Enterprises did not comment on
these data fields.
To conform to HMDA reporting
requirements, FHFA has incorporated
these five fields in the single-family
Census Tract File to reflect HMDA’s coborrower race or national origin fields.
(See the single-family matrix in the
Appendix for the specific codes that
apply to these data fields.) FHFA is
continuing to include the data as a
single data field in single-family
National Files A and B, and the
algorithm used for collapsing the five
co-borrower race or national origin
fields and co-borrower ethnicity field to
the single data field is the same as that
used for the five borrower race or
national origin fields and borrower
ethnicity field discussed under singlefamily data fields 41a-41e above.
d. Single-Family Data Field 42f: CoBorrower Ethnicity
This new data field identifies the
ethnicity of the co-borrower of the loan
acquired by the Enterprise. The
Enterprises have been reporting singlefamily co-borrower ethnicity to FHFA,
but the data was previously included
under code 7 (Hispanic or Latino) in
data field 42 in the single-family PUDB
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files, and not as a separate data field.
The Enterprises did not comment on
this data field.
To conform to HMDA reporting
requirements for co-borrower ethnicity,
FHFA has added this data element as
new data field 42f in the single-family
Census Tract File. (See the single-family
matrix in the Appendix for the specific
codes that apply.)
e. Single-Family Data Field 59: Lien
Status
This new data field identifies the lien
status of the single-family loans
acquired by the Enterprises. The
Enterprises have been reporting singlefamily lien status under the ‘‘purpose of
loan’’ data field. Freddie Mac confirmed
that it collects single-family lien status
data when it purchases mortgage loans
and currently provides this data to
FHFA. Freddie Mac stated that the
single-family lien status data field
should be identified in the PUDB as ‘‘not
applicable’’ because of the Enterprises’
status as loan purchasers, asserting that
the HMDA instructions specifically
differentiate between the reporting
requirements and data element coding
for originated versus purchased loans.
Fannie Mae did not comment on singlefamily lien status.
The HMDA instructions do
distinguish, for purposes of some data
elements, between insured depository
institutions that are loan purchasers and
those that are loan originators. Fannie
Mae and Freddie Mac, because they are
not insured depository institutions, do
not have any status under HMDA, either
as originators or as purchasers. But they
are, as a result of their activities, in
possession of HMDA data elements for
the loans that they purchase. In its role
as the agency charged with
administering the Safety and Soundness
Act, FHFA, by this Order, is identifying
the data elements that must be reported
and included in the PUDB. Since the
Enterprises have been collecting and
reporting single-family lien status data,
FHFA is requiring the Enterprises to
continue reporting that data for
inclusion in new data field 59 for lien
status in the single-family Census Tract
File. FHFA has populated the data field
using the lien status data reported for
data field 22 (purpose of loan), and will
do the same for subsequent years.
2. Data Elements Currently Collected
and Reported But Not Previously
Included in the PUDB
a. Single-Family Data Field 56: Rate
Spread
This new data field designates the
difference between the annual
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comment on single-family HOEPA
status.
Accordingly, to conform to HMDA
reporting requirements for HOEPA
status, FHFA has added this data
element as new data field 57 in the
single-family Census Tract File.
b. Single-Family Data field 57: HOEPA
Status
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percentage rate (APR) and the
applicable Treasury rate (see the Truth
in Lending regulations at 12 CFR part
226 (Regulation Z)) for single-family
mortgages purchased by the Enterprises.
The Enterprises have been reporting rate
spread data for single-family mortgages,
but this data was not previously
included in the PUDB. Fannie Mae
requested that the PUDB include ‘‘not
applicable’’ as an allowable value for the
single-family rate spread data field, on
the basis that HMDA does not require
the disclosure of rate spread information
for single-family rate spreads falling
below specified thresholds (equal to or
greater than 3 percentage points for first
lien loans, or 5 percentage points for
subordinate lien loans). In addition,
Fannie Mae stated that HMDA does not
require purchasers to disclose rate
spread information. Freddie Mac
expressed similar views.
Since the Enterprises have been
collecting and reporting rate spread data
for single-family mortgages, FHFA is
requiring the Enterprises to continue
reporting that data, which will be
included in new data field 56 in the
single-family Census Tract File.
For 2008, HMDA requires the
reporting of values for rate spread of 3.0
and greater for first liens, and 5.0 and
greater for subordinate liens. For 2009
and subsequent years, HMDA requires
the reporting of values for rate spread of
1.5 and 3.5, respectively. Values below
these thresholds, including values that
would be identified as ‘‘not applicable,’’
will be reported as a numeric zero (‘‘0’’)
because the PUDB is released as a
numeric-only database.
3. Data Element Currently Collected But
Not Previously Reported—SingleFamily Data Field 58: Property Type
This new data field identifies the type
of property securing the loan acquired
by the Enterprises. HMDA reporting
requirements differentiate the singlefamily property type data element as
single-family or manufactured housing.
The Enterprises have not previously
been required to distinguish between
single-family and manufactured housing
in their data reporting to FHFA.
In response to FHFA’s request, Fannie
Mae and Freddie Mac provided FHFA
with the requested single-family
property type data. Fannie Mae
commented that it collects and reports
manufactured housing data in a manner
different from that of HMDA reporters.
Specifically, Fannie Mae stated that the
HMDA definition of ‘‘manufactured
home’’ incorporates the definition used
by HUD and includes modular homes,
while Fannie Mae requires that
This new data field designates
whether a single-family loan acquired
by the Enterprise is subject to HOEPA,
as implemented in Regulation Z, 12 CFR
226.32, because the APR or the points
and fees on the loan exceed the HOEPA
triggers.5 The Enterprises have been
collecting and reporting the HOEPA
status of single-family loans to FHFA,
but this data was not previously
included in the PUDB. Fannie Mae
commented that, under its business
policies, single-family mortgages that
are subject to HOEPA are not eligible for
sale to Fannie Mae. However, such
loans can be purchased inadvertently by
the Enterprises. Freddie Mac did not
5 HOEPA applies to a ‘‘consumer credit
transaction that is secured by the consumer’s
principal dwelling’’ in which either the APR, or the
total points and fees payable by the consumer at or
before loan closing, exceed certain specified
amounts.
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c. Multifamily Data Field 50: Lien Status
This new data field identifies the lien
status of the multifamily loans acquired
by the Enterprises. Unlike single-family
lien status, multifamily lien status is not
currently included in the ‘‘purpose of
loan’’ data field in the multifamily
matrix. Fannie Mae has collected but
not reported this data in the past.
Freddie Mac confirmed that it collects
multifamily lien status data when it
purchases mortgage loans and currently
provides this data to FHFA for housing
goals purposes.
In response to FHFA’s request,
Freddie Mac and Fannie Mae provided
FHFA with the multifamily lien status
data necessary to populate the new
multifamily lien status data field for the
PUDB. However, Freddie Mac stated
that the multifamily lien status data
field should be identified in the PUDB
as ‘‘not applicable’’ because of the
Enterprises’ status as loan purchasers,
making the argument (already addressed
above) that the HMDA instructions
differentiate between the reporting
requirements and data element coding
for originated versus purchased loans.
Since the Enterprises have been
collecting multifamily lien status data,
FHFA is requiring the Enterprises to
report that data for inclusion in new
data field 50 for lien status in the
multifamily Census Tract File.
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41185
manufactured housing be built on a
permanent chassis that is attached to a
permanent foundation.
Subsequent discussions with Fannie
Mae revealed that it distinguishes
between modular homes that are ‘‘onframe’’ (i.e., built on a permanent
chassis and ready for occupancy upon
leaving the factory but not subject to
HUD code standards) and ‘‘off-frame’’
(i.e., housing that is not ready for
occupancy upon leaving the factory but
must be constructed on-site). Fannie
Mae indicated that it does not purchase
any loans relating to ‘‘on-frame’’
modular homes. Accordingly, it appears
that the types of loans that Fannie Mae
purchases are secured by manufactured
homes that meet both the HMDA and
HUD code standards.
Fannie Mae does purchase loans
secured by off-frame modular homes
that need to be constructed on-site.
However, these modular homes would
not qualify as ‘‘manufactured homes’’
under either HMDA’s or HUD’s
standards since they are not ready for
occupancy upon leaving the factory.
These homes would be designated as
single-family homes.
Fannie Mae also asserted that there
are timing discrepancies with regard to
the reporting of data for the PUDB and
HMDA. It stated that lenders report to
HMDA those loans that are purchased or
originated in the reporting year, while
Fannie Mae reports to FHFA all
mortgages purchased in a year—whether
originated in the current year or
seasoned loans. FHFA recognizes that
because of these differences in the
nature of the PUDB and HMDA, timing
differences in the reporting of singlefamily property data are inevitable.
Nevertheless, since this is a HMDArequired data field (see 12 CFR
203.4(a)(4)), FHFA is required to obtain
such data from the Enterprises.
Accordingly, to conform to HMDA
reporting requirements for property
type, FHFA has added property type,
without modification, as new data field
58 in the single-family Census Tract
File.
C. HMDA Data Elements Not
Incorporated in the PUDB, Consistent
With Section 304(j) of HMDA
Section 1326(d) of the Safety and
Soundness Act, as amended, provides
that the information related to loan
applicants’ privacy interests as
described in section 304(j) of HMDA
shall not be disclosed to the public.
Section 304(j) requires specifically that
the following PII not be disclosed to the
public:
(1) The applicant’s name and
identification number;
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(2) The date of the loan application;
and
(3) The date of any determination by
the lending institution with respect to
the application.
In addition, section 304(j) requires
that any disclosure of information must
ensure that depository institutions are
protected from liability under any
Federal or State privacy laws.
Consistent with section 304(j) of
HMDA, the PUDB does not disclose PII
contained in loan data reported by the
Enterprises to FHFA. FHFA does not
receive the loan applicant’s name,
identification number, or date of loan
application from the Enterprises. FHFA
does receive the date of the mortgage
note, which is equivalent to the HMDA
‘‘action date’’ for an originated loan, but
FHFA does not release this information
in the PUDB files with the exception of
single-family National File B where it is
released in data field 20 using the
following recoded values to protect PII:
1 = originated same calendar year as
acquired; 2 = originated prior to
calendar year of acquisition; or 9 =
missing.
D. HMDA Data Elements Not
Incorporated in the PUDB as
Inapplicable
The HMDA data fields discussed
below have not been incorporated in the
PUDB because they are inapplicable to
Enterprise mortgage purchases.
1. As of Year
This data field indicates the calendar
year in which the HMDA data are being
released, and is created by the Federal
Financial Institutions Examination
Council (FFIEC) in developing the
publicly-released HMDA database.
Since it is not a data element required
to be reported by HMDA-reporting
institutions, FHFA has not added this
data field to the PUDB.
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2. Preapproval
This HMDA data element indicates
whether the loan involved a request by
a household to the HMDA-reporting
lender for preapproval of a loan. FHFA
has not added this data field to the
PUDB because all loans in the PUDB
had to have been originated in order to
be acquired by the Enterprises.
3. Action Type
This HMDA data element indicates
the type of action taken on the loan by
the HMDA-reporting lender, e.g., loan
originated, application approved but not
accepted, application denied,
application withdrawn, or other
specified reasons. FHFA has not added
this data field to the PUDB as all loans
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in the PUDB had to have been
originated in order to be acquired by the
Enterprises.
4. Purchaser Type
This HMDA data element indicates
the type of entity that purchased the
loan from the HMDA-reporting lender.
FHFA has not added this data field to
the PUDB because the Enterprises are
always the purchasers of the loans
disclosed in the PUDB and this data is
released in data field 0, ‘‘Enterprise flag’’
(formerly called ‘‘agency flag’’).
5. Denial Reason 1–3
This HMDA data element indicates
the reasons a loan was denied by the
HMDA-reporting lender. FHFA has not
added this data field to the PUDB
because all of the loans in the PUDB had
to have been originated in order to be
acquired by the Enterprises and,
therefore, could not have been denied.
6. Edit Status
This data field indicates the validity
and/or quality status of the data
reported by the HMDA-reporting
institution. The data field is created by
FFIEC in developing the publiclyreleased HMDA database. Since the data
field is not required to be reported by
HMDA-reporting institutions, and the
data released to FHFA for inclusion in
the PUDB is certified as accurate by the
Enterprises, FHFA has not added this
data field to the PUDB.
7. Application Date Prior 2004 Flag
This HMDA data field indicates why
certain fields added to HMDA reporting
in 2004 were reported under pre-2004
reporting standards, e.g., the expanded
race/ethnicity fields. The data field was
created by FFIEC in developing the
publicly-released HMDA database, and
is based on the date of the loan
application reported by HMDAreporting lenders. The date of the loan
application is private applicant
information under section 304(j) of
HMDA, and the flag is now essentially
moot as there currently are few, if any,
pre-2004 loan applications reported in
the HMDA database. Accordingly,
FHFA has not added this data field to
the PUDB.
8. Multifamily: Occupancy
This HMDA data element identifies
whether the property to which the loan
relates is to be owner-occupied as a
principal residence. This data field is
not relevant to the PUDB multifamily
Census Tract File because the PUDB
reports data for single-family and
multifamily loans in separate files, and
multifamily properties, by definition,
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are occupied by renters and thus not
owner-occupied.
9. Multifamily: Type of Property
This HMDA data element identifies
the type of property securing the loan
made by the HMDA-reporting lender.
This data element is not relevant to the
Enterprise PUDB multifamily Census
Tract File because the PUDB reports
data for single-family and multifamily
loans in separate files and, therefore, all
loans in the multifamily files are, by
definition, secured by multifamily
properties.
E. Technical Revisions to Data Fields in
the PUDB Matrices
1. Conforming to Long-Standing PUDB
Reporting Practice or Providing Greater
Clarity
FHFA has made technical revisions to
certain data fields in the PUDB matrices
to conform the data fields to longstanding PUDB data reporting practice
or provide greater clarity, as further
discussed below.
a. Single-Family and Multifamily Data
Field 1: Loan Number
This data field designates the
sequence number assigned by FHFA in
the PUDB files that corresponds to the
loan number assigned by the Enterprise.
FHFA has changed the description of
this data field to conform the
description to the long-standing practice
of using randomly generated sequence
numbers (and not random numbers as
the previous description suggested) to
identify Enterprise mortgage loan
purchases in the PUDB. Each loan
record is assigned a different sequence
number that is randomly generated
within each file. Thus, the first loan
record in the Census Tract File is not
also the first loan record in the National
File A or National File B with a very
high degree of probability. A similar
change to the description of this data
element has been made in data field 1
of the multifamily matrix.
b. Single-Family and Multifamily Data
Field 4: MSA Code
This data field designates the
Metropolitan Statistical Area (MSA)
Code for the location of the property
securing the Enterprise mortgage loan.
Consistent with long-standing PUDB
data reporting practice, FHFA has
revised this data field in the singlefamily and multifamily Census Tract
Files to include a value ‘‘99999’’ for
properties located outside of an MSA
(e.g., rural locations or micropolitan
statistical areas). In addition, consistent
with long-standing PUDB data reporting
practice, FHFA has added in the matrix
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for the Census Tract File a value entitled
‘‘Other’’ for properties located in a
specific MSA, which would be
applicable to any 5-digit number other
than 00000 (for missing property
location) or 99999.
c. Single-Family and Multifamily Data
Field 6: County—2000 Census
This data field designates the county
location of the property securing the
Enterprise mortgage loan. FHFA has
renamed the data field from ‘‘County—
1990 Census’’ to ‘‘County—2000
Census,’’ as the Enterprises have
reported 2000 Census geography since
2003. The reference in this and other
data fields to the 2000 Census will be
updated to refer to the 2010 Census
when applicable to a future PUDB.
d. Single-Family and Multifamily Data
Field 7: Census Tract—2000 Census
This data field designates the census
tract location of the property securing
the Enterprise mortgage loan. FHFA has
renamed the data field from ‘‘Census
Tract/BNA—1990 Census’’ to ‘‘Census
Tract—2000 Census,’’ as the Enterprises
have reported 2000 Census geography
since 2003, and Block Numbering Areas
(BNAs) were phased out after the 1990
Census.6
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e. Single-Family and Multifamily Data
Field 11: 2000 Census Tract—Percent
Minority
This data field designates the
percentage of the population that
belongs to all minority groups in the
census tract location of the property
securing the Enterprise mortgage. FHFA
has renamed this data field from ‘‘1990
Census Tract—Percent Minority’’ to
‘‘2000 Census Tract—Percent Minority,’’
as the Enterprises have used 2000
census tract demographic data since
2005.
f. Single-Family and Multifamily Data
Field 12: 2000 Census Tract—Median
Income
This data field designates the family
area median income (AMI) of the census
tract location of the property securing
the Enterprise mortgage. FHFA has
renamed this data field from ‘‘1990
Census Tract—Median Income’’ to ‘‘2000
Census Tract—Median Income,’’ as the
Enterprises have used 2000 census tract
data since 2005.
g. Single-Family and Multifamily Data
Field 13: 2000 Local Area Median
Income
This data field designates the AMI for
the location of the property securing the
6 https://www.census.gov/geo/www/cen_tract.html.
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Enterprise mortgage, which is: The MSA
for properties located in an MSA; or the
county or State non-metropolitan area
for properties located outside an MSA,
whichever is greater. FHFA has
renamed this data element from ‘‘1990
Local Area Median Income’’ to ‘‘2000
Local Area Median Income,’’ as the
Enterprises have used 2000 census tract
data since 2005.
h. Single-Family Data Field 16: Area
Median Family Income
This data field designates the AMI for
the location of the property securing the
Enterprise mortgage for the reporting
year (i.e., year of mortgage acquisition
by the Enterprise), which is: The MSA
for properties located in an MSA; or the
county or State non-metropolitan area
for properties located outside an MSA,
whichever is greater. FHFA has
eliminated the incorrect reference in the
data field to ‘‘withheld as proprietary,’’
as this data field has always been nonproprietary in the single-family
database.
i. Single-Family Data Field 17: Borrower
Income Ratio
This data field identifies the ratio of
the borrower’s annual income to the
AMI (data field 16). FHFA has
eliminated the incorrect reference in the
data field to ‘‘withheld as proprietary,’’
as this data field has always been nonproprietary (i.e., only coded 9999 when
borrower income or AMI is unknown) in
the single-family database.
j. Single-Family Data Field 25 and
Multifamily Data Field 24: ‘‘Special
Affordable, Seasoned Loan: Are
Proceeds Recycled?’’
This data field identifies the specific
reasons in accordance with 12 CFR
1282.14(e) for an Enterprise claiming
Special Affordable Housing Goal credit
for the Enterprise’s purchase of loans
that originated more than one year prior
to the date of acquisition. FHFA has
expanded the reporting codes for this
data field to include additional reasons
set forth under 12 CFR 1282.14(e), as the
Enterprises have reported their mortgage
data using these expanded codes since
2001.
k. Single-Family Data Field 27: Federal
Guarantee
This data field identifies the source of
the Federal guarantee or insurance of
the loan acquired by the Enterprise. The
single-family loan matrix previously
included a code 4 for the purchase of a
mortgage that assists in maintaining the
affordability of assisted units in eligible
multifamily housing projects with
expiring contracts. The code is not
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41187
applicable to single-family transactions
and already appears in the multifamily
loan matrix. Accordingly, FHFA has
deleted this code from the single-family
loan matrix.
l. Single-Family Data Field 34 and
Multifamily Data Field 33: Type of
Seller Institution
This data field identifies the type of
seller of the loan to the Enterprise.
FHFA has expanded the reporting codes
for this data field to include additional
types of sellers, as the Enterprises have
reported their mortgage data using these
expanded codes since 2001. For singlefamily National File B and the
multifamily Census Tract File, FHFA is
preserving the prior PUDB data field
recoding, which is: 1 = Mortgage
Company; 2 = SAIF Insured Depository
Institution; 3 = BIF Insured Depository
Institution; 4 = NCUA Insured Credit
Union; 5 = Other. The prior PUDB data
field recoding is also preserved for the
multifamily National File.
m. Single-Family Data Field 38 and
Multifamily Data Field 36: Acquisition
Type
This data field identifies the type of
acquisition by the Enterprise (e.g., credit
enhancement, purchase of State or local
mortgage revenue bond). FHFA has
expanded the reporting codes for this
data field to include additional
acquisition types, as the Enterprises
have reported their mortgage data using
these expanded codes since 2003.
Fannie Mae noted that the proposed
addition of the acquisition type code of
‘‘61 = asset management refinance’’ is
not applicable to single-family
transactions and already appears in the
multifamily loan matrix. FHFA agrees
with this comment and, as a result, has
not included this code in the singlefamily matrix.
2. Conforming to New Statutory
Requirements
FHFA has made technical revisions to
certain data fields and references in the
PUDB matrices to conform to the new
HERA requirements, as further
discussed below.
a. Single-Family Data Field 15:
Borrower’s (or Borrowers’) Annual
Income
This data field identifies the
borrower’s or borrowers’ annual income,
which is the numerator of the borrower
income ratio reported in data field 17.
To be consistent with HMDA reporting
requirements, FHFA is now rounding
the values reported for this data field to
the nearest $1,000 (where values of $500
or more are rounded up) of the
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borrower’s annual income, in addition
to the current practice of recoding in
terms of dollars for year of acquisition.
V. Proposed Data Elements Not
Currently Collected That Will Not Be
Included in the PUDB
b. Single-Family Data Field 18 and
Multifamily Data Field 17: Acquisition
UPB
FHFA had originally considered
requiring the reporting and public
release of data fields for multifamily
borrower and co-borrower race or
national origin, multifamily borrower
and co-borrower ethnicity, multifamily
borrower and co-borrower gender,
multifamily rate spread, multifamily
HOEPA status, respondent ID and
agency code. After considering the
Enterprises’ comments, and upon
further review of the statutory
requirements, as discussed in Section
I.B. above, FHFA has determined that
the Enterprises are not required under
HERA to report these data elements as
they do not currently collect these data.
The Enterprises presented additional
arguments for why they should not be
required to collect and report these data,
which are discussed below.
Consistent with section 1323(b)(2) of
the Safety and Soundness Act, as
amended,7 FHFA is not applying the
same methods that previously were
used to mask loan acquisition UPB data,
i.e., FHFA has removed the topcoding
and the use of categories in reporting
acquisition UPB that previously were
applied to this data field as described in
the single-family matrix. The loan
acquisition UPB is rounded to the
nearest $1,000 (where values of $500 or
more are rounded up), consistent with
HMDA reporting requirements.
Similarly, the multifamily loan
acquisition UPB data is rounded to the
nearest $1,000 (where values of $500 or
more are rounded up) to conform to
HMDA reporting practice.
The Enterprises collect two values of
UPB, both of which correspond to the
HMDA data field ‘‘loan amount’’:
Acquisition UPB and origination UPB.
Historically, they have reported, and the
PUDB has included, acquisition UPB.
Because this HMDA data element is
rounded to the nearest $1000, and
because the majority of loans acquired
by the Enterprises are current-year
originations for which there is a
negligible amount of amortization
between origination and acquisition,
there is no difference between the
values in most cases. FHFA will
continue to include acquisition UPB in
the PUDB.
srobinson on DSKHWCL6B1PROD with NOTICES
c. References to ‘‘Enterprises’’ and
Regulatory Cites
To reflect revisions in terminology as
a result of the enactment of HERA,
FHFA has changed the references to
‘‘GSEs’’ in the PUDB matrices to
‘‘Enterprises.’’ The PUDB is applicable
only to loan data submitted by the
Enterprises, i.e., Fannie Mae and
Freddie Mac. The PUDB is not
applicable to loan data submitted by the
Banks, which are also GSEs but are
subject to separate PUDB reporting
requirements. The regulatory cites in the
PUDB matrices have also been revised,
as the applicable regulatory provisions
are now located in Title 12 of the Code
of Federal Regulations.
7 Section 1323(b)(2) prohibits the Director from
restricting public access to the data elements
required to be reported under HMDA at the census
tract level.
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A. Multifamily Borrower and CoBorrower Race or National Origin;
Multifamily Borrower and Co-Borrower
Ethnicity; and Multifamily Borrower and
Co-Borrower Gender
FHFA considered adding new HMDA
data fields to the PUDB that would have
identified multifamily borrower and coborrower race or national origin,
multifamily borrower and co-borrower
ethnicity, and multifamily borrower and
co-borrower gender. Both Fannie Mae
and Freddie Mac commented that they
do not collect race, national origin,
ethnicity, or gender for their
multifamily loan purchases since the
vast majority of their multifamily
mortgage business involves non-natural
persons (e.g., limited liability
companies, corporations). Freddie Mac
stated that HMDA does not require these
data elements to be reported for loans
involving a borrower or applicant that is
not a natural person (citing to 12 CFR
part 203, App. A at I.D.1), or by
secondary market loan purchasers
(citing to 12 CFR 203.4(b)(2)). In
addition, both Fannie Mae and Freddie
Mac claimed that collecting such data
would involve considerable expense
and significant additional work and
resources. Freddie Mac requested that
FHFA consider these data elements to
be optional and reportable as ‘‘not
applicable’’ in accordance with HMDA
reporting requirements for purchased
loans.
Since the Enterprises are not currently
collecting these data, and the data point
is not a HMDA data element for the
great majority of multifamily loans that
the Enterprises purchase, as to which
the borrowers are non-natural persons,
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and collecting the data would impose a
substantial additional burden on the
Enterprises while they are in
conservatorship, FHFA is not requiring
the Enterprises to collect and report
these data for inclusion in the PUDB.
B. Multifamily Rate Spread
FHFA considered adding a new
HMDA data field to the PUDB that
would have designated the difference
between the APR and the applicable
Treasury rate for multifamily mortgages
acquired by the Enterprise. Both
Enterprises commented that they do not
collect multifamily rate spread, and
maintained that this data field is not
applicable to multifamily lending under
Regulation Z (12 CFR 226.1(c), which
implements the Truth in Lending Act)
and HOEPA. Fannie Mae contended
that, for loans subject to Regulation Z,
the reporting entity is required to
provide information on certain ‘‘highpriced mortgage loans,’’ but stated that
Regulation Z does not apply to
extensions of credit to non-natural
persons (citing to 12 CFR 226.3(a)(2)).
Freddie Mac asserted that HMDA does
not require the collection and reporting
of data for purchased loans, and both
Enterprises stated that requiring the
collection of this data would involve
considerable expense and impose a
significant regulatory burden.
Since the Enterprises are not currently
collecting this data, and the data point
is not a HMDA data element for the
great majority of multifamily loans that
the Enterprises purchase, as to which
the borrowers are non-natural persons,
and collecting the data would impose a
substantial additional burden on the
Enterprises while they are in
conservatorship, FHFA is not requiring
the Enterprises to collect and report this
data for inclusion in the PUDB.
C. Multifamily HOEPA Status
FHFA considered adding a new
HMDA data field to the PUDB that
would have designated whether the
multifamily loan acquired by the
Enterprise is subject to HOEPA because
the APR or the points and fees on the
loan exceed the HOEPA triggers. Both
Enterprises stated that they do not
collect multifamily HOEPA status and,
for the reasons discussed under the
multifamily rate spread discussion
above, maintained that this data field is
also not applicable to multifamily
lending under Regulation Z and
HOEPA. Fannie Mae also stated that
HOEPA applies ‘‘to a consumer credit
transaction that is secured by the
consumer’s principal dwelling’’ and
does not apply to multifamily
properties.
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For the reasons stated with respect to
the multifamily data elements discussed
above, FHFA is not requiring the
Enterprises to collect and report this
data for inclusion in the PUDB.
srobinson on DSKHWCL6B1PROD with NOTICES
D. Single-Family and Multifamily
Respondent ID and Agency Code
FHFA considered adding new HMDA
data fields to the PUDB that would have
designated the identification number
(respondent ID) assigned by a HMDAreporting lender’s regulatory agency to
the institution that reported the loan,
and the code of the regulatory agency
(agency code) for the HMDA-reporting
lender that provided the loan to the
borrower. The Enterprises have not been
collecting respondent IDs and agency
codes for their single-family or
multifamily loan purchases.
Fannie Mae and Freddie Mac opposed
inclusion in the PUDB of the respondent
ID and agency code data fields, claiming
that these are not required HMDA data
fields, as described in Regulation C
(citing to 12 CFR 203.4(a)) and,
therefore, they are not data elements
required to be reported in the PUDB
under HERA.
Freddie Mac also asserted that even if
respondent ID and agency code
constitute data elements under HMDA,
HMDA reporters that are purchasers are
not required to report from whom they
purchased a loan (whether from the
originator or from another entity).
Fannie Mae also stated that currently it
collects and reports to FHFA the type of
institution that sold the loan to Fannie
Mae (single-family data field 34 and
multifamily data field 33), and this data
is disclosed in the PUDB and provides
a more specific description than
revealed by agency code of the type of
institution from which Fannie Mae
purchases its loans.
In addition, Fannie Mae asserted that
if FHFA concludes that respondent ID is
a HMDA data element, it would request
proprietary treatment under 24 CFR
81.74(b) to prevent the public release of
this data, which Fannie Mae believes
will result in competitive harm.
Since the Enterprises are not
collecting these data, and doing so
would impose a substantial additional
burden on them while they are in
conservatorship, FHFA is not requiring
the Enterprises to collect and report
these data for inclusion in the PUDB. In
particular, it would be burdensome,
expensive and time-consuming for the
Enterprises to make the necessary
changes to their seller-servicer
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guidelines and infrastructure to collect
such data.
For the convenience of the affected
parties, the Order is recited below in its
entirety. You may access this Order
from FHFA’s Web site at https://
www.fhfa.gov/Default.aspx?Page=43.
The Order will be available for public
inspection and copying at the Federal
Housing Finance Agency, Fourth Floor,
1700 G St., NW., Washington, DC 20552.
To make an appointment, call (202)
414–6924.
VI. Order
Public Use Database for Enterprise
Mortgage Purchases
Whereas, section 1323(a)(1) of the
Federal Housing Enterprises Financial
Safety and Soundness Act of 1992
(Safety and Soundness Act), as
amended, 12 U.S.C. 4543(a)(1), requires
the Director of the Federal Housing
Finance Agency (FHFA) to make
available to the public the nonproprietary single-family and
multifamily loan-level mortgage data
elements submitted to FHFA by the
Federal National Mortgage Association
(Fannie Mae) and the Federal Home
Loan Mortgage Corporation (Freddie
Mac) (collectively, the Enterprises) in
their mortgage reports;
Whereas, the responsibility to
maintain a public use database (PUDB)
for such mortgage data was transferred
to FHFA from the U.S. Department of
Housing and Urban Development (HUD)
pursuant to sections 1122, 1126 and
1127 of the Housing and Economic
Recovery Act of 2008 (HERA), Public.
Law 110–289 (July 30, 2008), see 12
U.S.C. 4543(a)(2);
Whereas, the mortgage data submitted
by Fannie Mae and Freddie Mac are
contained in their reports required
under section 309(m) of the Federal
National Mortgage Association Charter
Act, as amended, 12 U.S.C. 1723a(m),
and section 307(e) of the Federal Home
Loan Mortgage Corporation Act, as
amended, 12 U.S.C. 1456(e),
respectively (hereafter, Charter Acts),
and include mortgage data
characteristics of single-family and
multifamily mortgagors and data on the
Enterprises’ single-family and
multifamily mortgage purchases;
Whereas, section 1126 of HERA
amended section 1323 of the Safety and
Soundness Act by requiring that such
data submitted by the Enterprises in
their mortgage reports shall include the
data elements required to be reported
under the Home Mortgage Disclosure
PO 00000
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41189
Act of 1975 (HMDA), 12 U.S.C. 2801 et
seq., at the census tract level, and that
such data elements be disclosed to the
public, see 12 U.S.C. 4543;
Whereas, to comply with sections
1323 and 1326 of the Safety and
Soundness Act, as amended, it is
necessary to make changes to the data
fields in FHFA’s single-family and
multifamily matrices of the PUDB to
incorporate the data elements required
thereunder and to reflect HMDA
reporting practices;
Whereas, FHFA has determined that
certain technical revisions to the data
elements in the single-family and
multifamily matrices of the PUDB
should also be made to conform the data
fields to long-standing PUDB data
reporting practice, to provide greater
clarity, or to conform to the new
statutory requirements;
Whereas, the Enterprises were
provided with an opportunity to review
and comment on proposed revisions to
the data fields in the single-family and
multifamily matrices of the PUDB, and
FHFA has taken the Enterprises’
comments into consideration in
adopting this Order;
Whereas, FHFA requested that the
Enterprises provide it with specific new
mortgage data for inclusion in the PUDB
in accordance with the requirements of
HERA, and the Enterprises provided the
specific data that they currently collect;
Now, therefore, it is hereby ordered as
follows:
1. The data fields in the single-family
and multifamily matrices of the PUDB
are revised as set forth in the attached
Appendix which is incorporated herein
by reference;
2. The Enterprises shall provide
FHFA with the mortgage data required
to populate the data fields described in
the single-family and multifamily
matrices in the Appendix; and
3. This Order supersedes the HUD
Final Order of October 4, 2004 (69 FR
59476) and shall be effective until such
time as FHFA determines that it is
necessary and/or appropriate to
withdraw or modify it.
Signed at Washington, DC, this 1st day of
July 2010.
Wanda DeLeo,
Acting Deputy Director for Housing Mission
and Goals By delegation.
Dated: July 8, 2010.
Edward J. DeMarco,
Acting Director, Federal Housing Finance
Agency.
BILLING CODE 8070–01–P
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[FR Doc. 2010–17119 Filed 7–14–10; 8:45 am]
BILLING CODE 8070–01–C
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than August 9, 2010.
A. Federal Reserve Bank of
Richmond (A. Linwood Gill, III, Vice
President) 701 East Byrd Street,
Richmond, Virginia 23261–4528:
1. CapGen Capital Group VI LLC, and
CapGen Capital Group VI LP, both of
New York, New York; to become bank
holding companies by acquiring up to
49.9 percent of the voting shares of
Hampton Roads Bankshares, Inc., and
Bank of Hampton Roads, both of
Norfolk, Virginia, and Shore Bank,
Onley, Virginia.
Board of Governors of the Federal Reserve
System, July 12, 2010.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2010–17286 Filed 7–14–10; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL TRADE COMMISSION
Granting of Request for Early
Termination of the Waiting Period
Under the Premerger Notification
Rules
Section 7A of the Clayton Act, 15
U.S.C. 18a, as added by Title II of the
Hart-Scott Rodino Antitrust
Improvements Act of 1976, requires
persons contemplating certain mergers
or acquisitions to give the Federal Trade
Commission and the Assistant Attorney
General advance notice and to wait
designated periods before
consummation of such plans. Section
7A(b)(2) of the Act permits the agencies,
in individual cases, to terminate this
waiting period prior to its expiration
and requires that notice of this action be
published in the Federal Register.
The following transactions were
granted early termination of the waiting
period provided by law and the
premerger notification rules. The grants
were made by the Federal Trade
Commission and the Assistant Attorney
General for the Antitrust Division of the
Department of Justice. Neither agency
intends to take any action with respect
to these proposed acquisitions during
the applicable waiting period.
TRANSACTION GRANTED EARLY TERMINATION
ET date
Trans No.
.
01–JUN–10 ............................................................
ET req
status
20100246
20100657
20100692
20100718
20100720
20100722
20100723
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20100727
20100728
20100730
03–JUN–10 ............................................................
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G
G
G
G
G
G
G
G
G
G
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G
G
G
G
G
G
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G
G
G
G
G
G
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G
Party name
Francisco Partners, L.P.
Inovis International, Inc.
Inovis International, Inc.
AMETEK, Inc.
Pfingsten Executive QP Fund III, L.P.
TSE Acquisition Corporation.
Hewlett-Packard Company.
Palm, Inc.
Palm, Inc.
Industrial Growth Partners III, L.P.
Fred H. Stubblefield, III.
Controls Southeast, Inc.
Veraz Networks, Inc.
Dialogic Corporation.
Dialogic Corporation.
Mill Road Capital, L.P.
Rubio’s Restaurants, Inc.
Rubio’s Restaurants, Inc.
Thomas H. Lee Equity Fund VI, L.P.
inVentiv Health, Inc.
inVentiv Health, Inc.
Leonard A, Lauder.
SBX, LLC.
SBX Holding Company.
NRG Energy, Inc.
Pinnacle West Capital Corporation.
Northwind Phoenix, LLC.
Providence Equity Partners VI, L.P.
Virtual Radiologic Corporation.
Virtual Radiologic Corporation.
LifePoint Hospitals, Inc.
Sfmt 4703
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Agencies
[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Notices]
[Pages 41180-41201]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17119]
=======================================================================
-----------------------------------------------------------------------
FEDERAL HOUSING FINANCE AGENCY
[No. 2010-N-10]
Notice of Order: Revisions to Enterprise Public Use Database
AGENCY: Federal Housing Finance Agency.
ACTION: Notice of order.
-----------------------------------------------------------------------
SUMMARY: Section 1323(a)(1) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (Safety and Soundness Act),
as amended, requires the Federal Housing Finance Agency (FHFA) to make
available to the public the non-proprietary single-family and
multifamily loan-level mortgage data elements submitted to FHFA by the
Federal National Mortgage Association (Fannie Mae) and the Federal Home
Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises)
in their mortgage reports required under their charter acts. This
responsibility to maintain a public use database (PUDB) for such
mortgage data was transferred to FHFA from the U.S. Department of
Housing and Urban Development (HUD) pursuant to sections 1122, 1126 and
1127 of the Housing and Economic Recovery Act of 2008 (HERA), and was
expanded to include data elements required to be reported under the
Home Mortgage Disclosure Act of 1975 (HMDA).
Specifically, section 1126 of HERA amended section 1323 of the
Safety and Soundness Act by requiring that the Enterprises' mortgage
reports include the data elements required to be reported under HMDA at
the census tract level, and that such data elements be disclosed to the
public. In addition, section 1127 of HERA amended section 1326 of the
Safety and Soundness Act by requiring that, subject to privacy
considerations as described in section 304(j) of HMDA, the Director of
FHFA shall, by regulation or order, provide that certain information
relating to single-family mortgage data of the Enterprises shall be
disclosed to the public in order to make available to the public--(1)
the same data from the Enterprises that is required of insured
depository institutions under HMDA; and (2) information collected by
the Director of FHFA under section 1324(b)(6) of the Safety and
Soundness Act, as amended, for the purpose of comparing the
characteristics of high-cost securitized loans.
FHFA provided each Enterprise with an opportunity to review and
comment on FHFA's proposed revisions to the single-family and
multifamily PUDB matrices which describe the data fields provided in
the PUDB. FHFA has taken the Enterprises' comments into consideration,
and has adopted an Order that implements certain changes required by
HERA to the Enterprises' mortgage loan data reporting and the
disclosure of such data in the PUDB. The Order also makes technical
changes to the single-family and multifamily data matrices of the PUDB
to conform the data fields to long-standing PUDB data reporting
practice, to provide greater clarity, or to conform to the new
statutory requirements. The Notice of Order sets forth FHFA's Order
with accompanying Appendix containing the revised matrices, and
describes the changes made to the data fields in the matrices. Changes
to the PUDB matrices required by HERA relating to high-cost securitized
loans, as well as the Enterprise housing goals for 2010 and beyond,
will be implemented by the issuance of subsequent Orders.
DATES: Effective Date of the Order: The Order with accompanying
Appendix is effective on July 1, 2010.
FOR FURTHER INFORMATION CONTACT: For questions on data or methodology,
contact Paul Manchester, Principal Economist, Office of Housing Mission
and Goals, Quantitative Analysis and Goals, 1625 Eye Street, NW.,
Washington, DC 20006, (202) 408-2946, Paul.Manchester@fhfa.gov; or Ian
Keith, Program Analyst, 1625 Eye Street, NW., Washington, DC 20006,
(202) 408-2949, Ian.Keith@fhfa.gov. For legal questions, contact Sharon
Like, Associate General Counsel, OGC-Housing Mission and Goals, 1700 G
Street, NW., Washington, DC 20552, (202) 414-8950,
Sharon.Like@fhfa.gov. (These are not toll-free numbers.) The telephone
number for the Telecommunications Device for the Hearing Impaired is
(800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. Establishment of FHFA
Effective July 30, 2008, Division A of HERA, Public Law 110-289,
122 Stat. 2654 (2008), amended the Safety and Soundness Act and created
FHFA as an independent agency of the Federal Government. HERA
transferred the safety and soundness supervisory and oversight
responsibilities over the Enterprises, the Federal Home Loan Banks
(Banks), and the Office of Finance from the Office of Federal Housing
Enterprise Oversight (OFHEO) and the Federal Housing Finance Board,
respectively, to FHFA. HERA also transferred the charter compliance
authority, the responsibility to establish, monitor and enforce the
affordable housing goals, the responsibility to maintain the PUDB, and
the responsibility to oversee Enterprise data reporting, from HUD to
FHFA.
FHFA is responsible for ensuring that the Enterprises operate in a
safe and sound manner, including maintenance of adequate capital and
internal controls, that their operations and activities foster liquid,
efficient,
[[Page 41181]]
competitive, and resilient national housing finance markets, and that
they carry out their public policy missions through authorized
activities. See 12 U.S.C. 4513.
The Enterprises are government-sponsored enterprises (GSEs)
chartered by Congress for the purpose of establishing secondary market
facilities for residential mortgages. See 12 U.S.C. 1716 et seq.; 12
U.S.C. 1451 et seq. Specifically, Congress established the Enterprises
to provide stability in the secondary market for residential mortgages,
respond appropriately to the private capital market, provide ongoing
assistance to the secondary market for residential mortgages, and
promote access to mortgage credit throughout the nation. Id.
On September 6, 2008, the Director of FHFA appointed FHFA as
conservator of the Enterprises in accordance with the Safety and
Soundness Act, as amended by HERA, to maintain the Enterprises in a
safe and sound financial condition and to help assure performance of
their public mission. The Enterprises remain under conservatorship at
this time.
B. Statutory Requirements
Section 1323(a)(1) of the Safety and Soundness Act, as amended, 12
U.S.C. 4543(a)(1), requires the Director of FHFA (Director) to make
available to the public the non-proprietary data submitted by Fannie
Mae and Freddie Mac in their mortgage reports required under section
309(m) of the Federal National Mortgage Association Charter Act, as
amended, 12 U.S.C. 1723a(m), and section 307(e) of the Federal Home
Loan Mortgage Corporation Act, as amended, 12 U.S.C. 1456(e),
respectively (hereafter, Charter Acts). The Enterprises are required to
collect, maintain and provide to FHFA in these mortgage reports data
relating to their single-family and multifamily mortgage purchases
(e.g., income, census tract location, race and gender of mortgagors).
The responsibility to maintain a PUDB for mortgage data was transferred
from HUD to FHFA pursuant to sections 1122, 1126, and 1127 of HERA.
Section 1126 of HERA also amended section 1323 of the Safety and
Soundness Act by adding a new paragraph (a)(2) which requires that such
data submitted by the Enterprises in their mortgage reports shall
include the data elements required to be reported under HMDA, 12 U.S.C.
2801 et seq., at the census tract level. 12 U.S.C. 4543(a)(2). FHFA
construes this language in section 1323(a)(2) to require the
Enterprises to submit for inclusion in the PUDB HMDA mortgage data
elements that the Enterprises are currently collecting as part of their
established mortgage-purchasing activities. Section 1323(a) does not
contain a mandate that the Enterprises modify their seller-servicer
agreements to collect additional data solely for the purpose of
populating the PUDB. While it might be within the scope of statutory
discretion for the agency to administer this provision in that way, the
Enterprises are currently operating in conservatorship and it would not
further the purposes of their conservatorship to do so.
Section 1323(b)(1) states that, except as provided in paragraph
(b)(2), the Director may not make available to the public Enterprise
data that the Director determines under section 1326 are proprietary.
Section 1323(b)(2), as amended, provides that the Director shall not
restrict public access to the data in the Enterprise reports related to
income, census tract location, race, and gender of single-family
mortgagors, or to the data required to be reported under HMDA at the
census tract level. See 12 U.S.C. 4543(b)(1), 4543(b)(2), 4546.
Consistent with the amendments to section 1323, section 1127 of HERA
amended section 1326 of the Safety and Soundness Act by adding a new
paragraph (d) which states that, subject to the privacy restrictions
described in section 304(j) of HMDA,\1\ the Director shall make public
certain information relating to single-family mortgage data of the
Enterprises: (1) the same data from the Enterprises that is required of
insured depository institutions under HMDA; and (2) information
collected by the Director under section 1324(b)(6). See 12 U.S.C.
4544(b)(6), 4546(d). Section 1324(b)(6), in turn, part of a section
describing the contents of FHFA's Annual Housing Activities Report
(AHAR) to Congress, requires FHFA to compare ``the characteristics of
high-cost loans purchased and securitized by each Enterprise where such
securities are not held on portfolio, to loans purchased and
securitized where such securities are either retained on portfolio or
repurchased by the Enterprise, including such characteristics as--(A)
The purchase price of the property that secures the mortgage; (B) the
loan-to-value ratio of the mortgage, which shall reflect any secondary
liens on the relevant property; (C) the terms of the mortgage; (D) the
creditworthiness of the borrower; and (E) any other relevant data, as
determined by the Director.'' FHFA is continuing to assess the mortgage
data elements that are needed to implement section 1324(b)(6), and will
issue a subsequent Order, applicable to the PUDB for 2009, that
implements this section after it has completed its analysis.\2\
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\1\ Section 304(j) of HMDA addresses Loan Application Register
(LAR) information and describes, among other things, the manner in
which an applicant's privacy interests are to be protected in
response to a request for disclosure from the public, including
removal of the applicant's name and identification number, the date
of the application, and the date of any determination by the
institution with respect to such application. In addition, the
disclosure of information must ensure that depository institutions
are protected from liability under any Federal or State privacy
laws.
\2\ HERA also revised the Enterprises' housing goals for 2010
and subsequent years. FHFA will issue a subsequent Order, applicable
to the PUDB for 2010, that revises the applicable data fields in the
PUDB matrices to reflect HERA's changes to the Enterprise housing
goals.
---------------------------------------------------------------------------
Section 1323, as amended, also includes a new paragraph (d) which
states that data submitted under this section by an Enterprise shall be
made publicly available no later than September 30 of the year
following the year to which the data relates. 12 U.S.C. 4543(d).\3\
---------------------------------------------------------------------------
\3\ The release of the 2008 PUDB was delayed due to the transfer
of authority to release the data to the public from HUD to FHFA and
technical and operational issues raised by the new HERA data
reporting requirements.
---------------------------------------------------------------------------
C. Description of Enterprise Reporting and PUDB Matrices
From 1993 to 2005, HUD took a number of regulatory and
administrative actions to establish and maintain a PUDB, and to
withhold from disclosure in the PUDB certain Enterprise mortgage data
that HUD had determined to be proprietary information and to release to
the public Enterprise mortgage data that HUD had determined to be non-
proprietary. FHFA's revisions discussed in this Notice of Order have
been made to the PUDB matrices as set forth in HUD's October 4, 2004
Final Order. See 69 FR 59476. The PUDB matrices are data dictionaries,
attached as an Appendix to this Notice of Order, which describe the
data fields provided in the public release of the data in the PUDB.
The PUDB contains Enterprise single-family and multifamily mortgage
loan-level data, including data elements that have been determined to
lose their proprietary character when categorized in ranges or
otherwise adjusted or recoded. For single-family mortgage data, there
are three separate files: a Census Tract File that identifies the
census tract location of the mortgaged properties; a National File A
containing loan-level data on owner-occupied one-unit properties but
without census tract identifiers; and a National File B containing
unit-level data on all single-family properties without census tract
[[Page 41182]]
identifiers. For multifamily data, there are two separate files: a
Census Tract File that identifies the census tract location of the
mortgaged properties; and a National File that does not identify the
location of the mortgaged properties but contains mortgage-level data
and unit class-level data on all multifamily properties.
II. Proposed Revisions to the PUDB Matrices
To determine the appropriate treatment of the newly required data
elements for purposes of the PUDB, FHFA asked each Enterprise to
indicate whether it is collecting the following mortgage purchase data
and, if so, to provide such data to FHFA for inclusion in the PUDB: (1)
Single-family property type; (2) multifamily lien status; (3)
multifamily borrower race or national origin 1-5; (4) multifamily co-
borrower race or national origin 1-5; (5) multifamily borrower
ethnicity; (6) multifamily co-borrower ethnicity; (7) multifamily
borrower gender; (8) multifamily co-borrower gender; (9) multifamily
rate spread; and (10) multifamily HOEPA status.\4\ In response to
FHFA's request, the Enterprises provided FHFA with single-family
property type and multifamily lien status data. The Enterprises did not
provide the other information requested, which they stated they do not
collect.
---------------------------------------------------------------------------
\4\ A HOEPA mortgage is a mortgage covered by section 103(aa) of
the Home Ownership Equity Protection Act (HOEPA) (15 U.S.C.
1602(aa)), as implemented by the Board of Governors of the Federal
Reserve System.
---------------------------------------------------------------------------
FHFA also provided both Enterprises with an opportunity to review
and comment on FHFA's proposed revisions to the single-family and
multifamily PUDB matrices. In addition, FHFA stated that it would
consider any assertions by the Enterprises that the release of a
specific data field would result in the release of their proprietary
data, and would make a determination on this matter in accordance with
applicable statutory and regulatory requirements. However, data fields
that are required to be reported under HMDA at the census tract level,
pursuant to section 1323(a)(2) of the Safety and Soundness Act, as
amended, are not subject to regulatory and statutory processes for
proprietary determinations that might otherwise apply to the release of
such data since the disclosure of these data is explicitly required by
statute.
Both Enterprises provided comments on a number of the proposed data
field revisions, which are discussed in Sections IV. and V. below under
the applicable data fields. Certain data fields that FHFA originally
considered including in the PUDB, but which it has subsequently decided
to omit, are discussed in Section V.
III. Summary of Order's Treatment of HMDA and Other Data Elements in
the PUDB
Following is a summary of the changes made to the PUDB matrices to
conform to the HMDA data elements, and other technical changes made to
data elements in the PUDB matrices, as provided in FHFA's Order. The
changes take into account FHFA's analysis of the applicable statutory
provisions and FHFA's determinations with respect to the Enterprises'
comments on the proposed revisions to the matrices. A more detailed
discussion of the changes is contained in Section IV. below.
A. Expanded Values or Changes in Descriptions of Data Fields in the
PUDB Matrices
To conform to HMDA reporting requirements, FHFA has expanded the
values (i.e., codes) or changed the descriptions of the following data
fields in the PUDB matrices: single-family and multifamily Enterprise
flag; single-family and multifamily purpose of loan; and single-family
and multifamily Federal guarantee.
B. New Data Fields in the PUDB Matrices
As discussed above, FHFA construes section 1323(a)(2) to require
the Enterprises to submit for inclusion in the PUDB HMDA mortgage data
elements that the Enterprises are currently collecting. Accordingly,
FHFA has added new data fields for these HMDA data elements as separate
data fields in the PUDB matrices. In addition, as previously noted,
FHFA currently is reviewing the data reporting requirements in
connection with the high-cost securitized loans analysis that the
Director is required to conduct, and upon completion of that review,
will issue a new Order requiring the Enterprises to submit such data,
as specified by FHFA, for inclusion in the PUDB for 2009.
Specifically, FHFA has added the following new data fields in the
PUDB matrices for HMDA data elements that are currently collected and
reported by the Enterprises but which had been coded differently in the
PUDB: single-family borrower race or national origin 1-5; single-family
co-borrower race or national origin 1-5; single-family borrower
ethnicity; single-family co-borrower ethnicity; and single-family lien
status.
FHFA has added the following new data fields in the PUDB matrices
for HMDA data elements that are currently collected and reported by the
Enterprises but which had not previously been included in the PUDB:
single-family rate spread; single-family HOEPA status; and multifamily
lien status (previously reported by Freddie Mac only).
FHFA has also added a new data field for single-family property
type, which is currently collected but which had not previously been
reported by the Enterprises.
C. HMDA Data Elements Not Incorporated in the PUDB Pursuant to HMDA
Section 304(j)
Consistent with section 304(j) of HMDA, the PUDB does not disclose
personally identifiable information (PII) contained in loan data
reported by the Enterprises to FHFA. FHFA does not receive the
applicant's name, identification number, or date of loan application
from the Enterprises. FHFA does receive the date of the mortgage note,
which is equivalent to the HMDA ``action date'' for an originated loan,
but FHFA does not release this information in the PUDB files with the
exception of single-family National File B where it is released in data
field 20 in an aggregated form to protect PII.
D. HMDA Data Elements Not Incorporated in the PUDB as Inapplicable
The following HMDA data elements have not been incorporated in the
PUDB because they are inapplicable to Enterprise mortgage purchases: as
of year; preapproval; action type; purchaser type; denial reason 1-3;
edit status; application date prior 2004 flag; multifamily occupancy;
and multifamily type of property.
E. Technical Revisions to Data Elements in the PUDB Matrices
FHFA has made technical revisions to the following data fields in
the PUDB matrices to conform the data fields to long-standing PUDB data
reporting practice or provide greater clarity: loan number; MSA code;
county-2000 census; census tract-2000 Census; 2000 census tract-percent
minority; 2000 census tract-median income; 2000 local area median
income; area median family income; borrower income ratio; ``special
affordable, seasoned loan: are proceeds recycled?''; single-family
Federal guarantee; type of seller institution; and acquisition type.
FHFA has made technical revisions to the following data fields and
references in the PUDB matrices to conform to the
[[Page 41183]]
new statutory requirements: borrower's (or borrowers') annual income;
and single-family and multifamily acquisition unpaid principal balance
(UPB).
F. Proposed Data Elements Not Included in the PUDB
The following data elements are not currently collected by the
Enterprises, and FHFA is not requiring that they be collected and
reported for inclusion in the PUDB: multifamily borrower and co-
borrower race or national origin; multifamily borrower and co-borrower
ethnicity; multifamily borrower and co-borrower gender; multifamily
rate spread; multifamily HOEPA status; respondent ID; and agency code.
IV. Discussion of Revisions to PUDB Matrices
To implement the HERA amendments to sections 1323 and 1326 of the
Safety and Soundness Act, FHFA has adopted an Order that revises the
PUDB matrices to incorporate the HMDA data elements as applicable and
requires the Enterprises to submit data in accordance with the revised
matrices. The Order also makes a number of technical revisions to
existing data fields in the PUDB matrices to conform the data fields to
long-standing PUDB data reporting practice, to provide greater clarity,
or to conform to the new statutory requirements. The revised matrices
are included in an Appendix to the Order. Both the Order and Appendix
are set forth at the end of this Notice of Order. Single-family and
multifamily PUDB Data Dictionaries that further describe the data
fields will be made available on FHFA's public Web site at https://www.fhfa.gov/Default.aspx?Page=137.
FHFA's changes to the single-family and multifamily matrices are
further described below.
A. Expanded Values or Changed Descriptions
To conform to HMDA reporting requirements, FHFA has expanded the
values (or codes) or changed the descriptions of certain data fields in
the PUDB matrices, as further discussed below.
1. Single-family and Multifamily Data Field 0: Enterprise Flag
This data field designates whether the mortgage was purchased by
Fannie Mae or Freddie Mac. FHFA has changed the name of this data field
from ``agency flag'' to ``Enterprise flag'' to avoid confusing this
data field with HMDA's ``agency code'' data field (which is the
originating lender's regulatory agency code).
2. Single-family Data Field 22: Purpose of Loan
This data field designates the purpose of the mortgage acquired by
the Enterprise (e.g., purchase, refinancing, rehabilitation). HMDA
requires the reporting of the purpose of a mortgage, with one of the
purpose codes being for home improvement loans. Data field 22 included
a code for ``rehabilitation'' loans, which FHFA believes are
substantially equivalent to home improvement loans. Accordingly, to
conform to HMDA reporting requirements, FHFA has changed the code name
in this data field from ``rehabilitation'' loan to ``home improvement/
rehabilitation'' loan. In addition, to conform to HMDA reporting
requirements, FHFA has added codes in this data field in the single-
family Census Tract File to reflect HMDA's additional purpose of loan
codes. (See the expanded codes in the single-family matrix in the
Appendix.) FHFA has preserved the prior PUDB recoding in this data
field in the single-family National File B. FHFA also has expanded the
codes in this data field to enable the Enterprises to report second
mortgages and home improvement/rehabilitation mortgages as purchase
money mortgages where applicable, which allow the Enterprises to claim
appropriate credit under the 2005-2009 home purchase subgoals. Second
mortgages and home improvement/rehabilitation mortgages identified as
purchase money mortgages will be coded as ``1=purchase'' for the PUDB.
Fannie Mae asked whether a mortgage with a ``value of 4'' = home
improvement/rehabilitation (purchase mortgage) under the ``purpose of
loan'' data field would be disclosed in the PUDB as a ``1 = purchase'',
or a ``4 = home improvement/rehabilitation'' mortgage. FHFA is
clarifying in this Notice of Order that a mortgage with a ``value of
4'' will be disclosed in the PUDB as a ``purchase'' mortgage in the
single-family files.
3. Multifamily Data Field 21: Purpose of Loan
This data field designates the purpose of the mortgage acquired by
the Enterprise (e.g., purchase, refinancing, rehabilitation). For the
reasons discussed above for single-family data field 22, FHFA has
changed the ``rehabilitation'' loan purpose code in this data field in
the multifamily matrix to ``home improvement/rehabilitation'' loan. To
conform to HMDA reporting requirements, FHFA has also added codes in
this data field in the multifamily Census Tract File to reflect HMDA's
additional purpose of loan codes (see the expanded codes in the
multifamily matrix in the Appendix), while recoding non-HMDA values as
``not applicable/not available/other'' for the multifamily Census Tract
File.
Fannie Mae commented that multifamily loan purpose currently is
collected through one of four acquisition systems, depending on the
transaction structure (e.g., acquisition, refinance, equity, and
conversion). Fannie Mae indicated that when it delivers this
information to FHFA, it identifies the loan purpose as purchase,
refinance, new construction, rehabilitation or not applicable/not
available based on the loan purpose provided by the seller, special
feature codes, and other information. Fannie Mae stated that this
process of reporting the multifamily ``purpose of loan'' data might
cause some confusion for users trying to align the HMDA data with the
PUDB data. Accordingly, users of the PUDB and HMDA data should be aware
of the potential reporting discrepancy in the purpose of loan data
field in these two databases.
4. Single-family Data Field 27 and Multifamily Data Field 34: Federal
Guarantee
This data field identifies the source of the Federal guarantee or
insurance of the loan acquired by the Enterprise. Since 2001, the
Enterprises have been reporting loans insured or guaranteed by the
Federal Housing Administration, Department of Veterans Affairs, and
Rural Housing Service using an expanded set of values. To conform to
HMDA reporting requirements, FHFA has expanded the codes in the single-
family and multifamily Census Tract Files to reflect HMDA's additional
Federal loan guarantee or insurance sources. (See the expanded codes in
the single-family and multifamily matrices in the Appendix.) For
single-family National File A, single-family National File B, and the
multifamily National File, FHFA has preserved the prior PUDB recoding.
The description for data field 34 in the multifamily matrix has also
been changed from ``Government Insurance'' to ``Federal Guarantee'' to
be consistent with the description in data field 27 of the single-
family matrix. A technical revision has also been made to this data
field, as discussed under Section IV.E. below.
[[Page 41184]]
B. New Data Fields
1. Data Elements Currently Collected and Reported But Previously Coded
Differently in the PUDB
To conform to HMDA reporting requirements, FHFA has added the
following new data fields to the PUDB matrices for data elements that
are currently collected and reported by the Enterprises but which had
been coded differently in the PUDB.
a. Single-family Data Fields 41a-41e: Borrower Race or National Origin
1-5
These data fields identify the race or national origin of the
borrower of the loan acquired by the Enterprise. Since 2004, the
Enterprises have been reporting single-family borrower race or national
origin in accordance with five defined fields--borrower race1-borrower
race5--but the data was included in a single race or national origin
field in the PUDB. The Enterprises did not comment on these data
fields.
To conform to HMDA reporting requirements, FHFA has incorporated
these five fields in the single-family Census Tract File to reflect
HMDA's borrower race or national origin fields. (See the single-family
matrix in the Appendix for the specific codes that apply to these data
fields.) FHFA is continuing to include the data as a single data field
in National Files A and B, using an algorithm for collapsing the five
borrower race or national origin fields and borrower ethnicity field to
the single field. The single data field in National Files A and B is
constructed as follows:
i. If the borrower ethnicity field indicates that the borrower is
Hispanic or Latino, then the single field's value indicates the value
for ``Hispanic or Latino'' regardless of race (consistent with
reporting prior to 2004);
ii. Otherwise, if a unique value within borrower race1- borrower
race5 indicates that the borrower is American Indian or Alaskan Native,
Asian, Black or African American, Native Hawaiian or Other Pacific
Islander, or White, then the single field's value is that unique value
(this includes multiple selections of that unique value);
iii. Otherwise, if the values within borrower race1- borrower race5
indicate that the borrower has selected more than one of American
Indian or Alaskan Native, Asian, Black or African American, Native
Hawaiian or Other Pacific Islander, or White, then the single field's
value indicates ``Two or more races'';
iv. Otherwise, the single field's value indicates ``not available/
not applicable'' (i.e., no indication of race or ethnicity provided).
b. Single-family Data Field 41f: Borrower Ethnicity
This new data field identifies the ethnicity of the borrower of the
loan acquired by the Enterprise. The Enterprises have been reporting
single-family borrower ethnicity to FHFA, but these data were
previously included under code 7 (Hispanic or Latino) in data field 41
in the single-family PUDB files and not as a separate data field. The
Enterprises did not comment on this data field.
To conform to HMDA reporting requirements for borrower ethnicity,
FHFA has added this data element as new data field 41f in the single-
family Census Tract File. (See the single-family matrix in the Appendix
for the specific codes that apply to this data field.)
c. Single-family Data Fields 42a-42e: Co-Borrower Race or National
Origin 1-5
These data fields identify the race or national origin of the co-
borrower of the loan acquired by the Enterprise. Since 2004, the
Enterprises have been reporting single-family co-borrower race or
national origin to FHFA in accordance with five defined fields--co-
borrower race1- co-borrower race5--but the data was included in a
single race or national origin field in the PUDB. The Enterprises did
not comment on these data fields.
To conform to HMDA reporting requirements, FHFA has incorporated
these five fields in the single-family Census Tract File to reflect
HMDA's co-borrower race or national origin fields. (See the single-
family matrix in the Appendix for the specific codes that apply to
these data fields.) FHFA is continuing to include the data as a single
data field in single-family National Files A and B, and the algorithm
used for collapsing the five co-borrower race or national origin fields
and co-borrower ethnicity field to the single data field is the same as
that used for the five borrower race or national origin fields and
borrower ethnicity field discussed under single-family data fields 41a-
41e above.
d. Single-Family Data Field 42f: Co-Borrower Ethnicity
This new data field identifies the ethnicity of the co-borrower of
the loan acquired by the Enterprise. The Enterprises have been
reporting single-family co-borrower ethnicity to FHFA, but the data was
previously included under code 7 (Hispanic or Latino) in data field 42
in the single-family PUDB files, and not as a separate data field. The
Enterprises did not comment on this data field.
To conform to HMDA reporting requirements for co-borrower
ethnicity, FHFA has added this data element as new data field 42f in
the single-family Census Tract File. (See the single-family matrix in
the Appendix for the specific codes that apply.)
e. Single-Family Data Field 59: Lien Status
This new data field identifies the lien status of the single-family
loans acquired by the Enterprises. The Enterprises have been reporting
single-family lien status under the ``purpose of loan'' data field.
Freddie Mac confirmed that it collects single-family lien status data
when it purchases mortgage loans and currently provides this data to
FHFA. Freddie Mac stated that the single-family lien status data field
should be identified in the PUDB as ``not applicable'' because of the
Enterprises' status as loan purchasers, asserting that the HMDA
instructions specifically differentiate between the reporting
requirements and data element coding for originated versus purchased
loans. Fannie Mae did not comment on single-family lien status.
The HMDA instructions do distinguish, for purposes of some data
elements, between insured depository institutions that are loan
purchasers and those that are loan originators. Fannie Mae and Freddie
Mac, because they are not insured depository institutions, do not have
any status under HMDA, either as originators or as purchasers. But they
are, as a result of their activities, in possession of HMDA data
elements for the loans that they purchase. In its role as the agency
charged with administering the Safety and Soundness Act, FHFA, by this
Order, is identifying the data elements that must be reported and
included in the PUDB. Since the Enterprises have been collecting and
reporting single-family lien status data, FHFA is requiring the
Enterprises to continue reporting that data for inclusion in new data
field 59 for lien status in the single-family Census Tract File. FHFA
has populated the data field using the lien status data reported for
data field 22 (purpose of loan), and will do the same for subsequent
years.
2. Data Elements Currently Collected and Reported But Not Previously
Included in the PUDB
a. Single-Family Data Field 56: Rate Spread
This new data field designates the difference between the annual
[[Page 41185]]
percentage rate (APR) and the applicable Treasury rate (see the Truth
in Lending regulations at 12 CFR part 226 (Regulation Z)) for single-
family mortgages purchased by the Enterprises. The Enterprises have
been reporting rate spread data for single-family mortgages, but this
data was not previously included in the PUDB. Fannie Mae requested that
the PUDB include ``not applicable'' as an allowable value for the
single-family rate spread data field, on the basis that HMDA does not
require the disclosure of rate spread information for single-family
rate spreads falling below specified thresholds (equal to or greater
than 3 percentage points for first lien loans, or 5 percentage points
for subordinate lien loans). In addition, Fannie Mae stated that HMDA
does not require purchasers to disclose rate spread information.
Freddie Mac expressed similar views.
Since the Enterprises have been collecting and reporting rate
spread data for single-family mortgages, FHFA is requiring the
Enterprises to continue reporting that data, which will be included in
new data field 56 in the single-family Census Tract File.
For 2008, HMDA requires the reporting of values for rate spread of
3.0 and greater for first liens, and 5.0 and greater for subordinate
liens. For 2009 and subsequent years, HMDA requires the reporting of
values for rate spread of 1.5 and 3.5, respectively. Values below these
thresholds, including values that would be identified as ``not
applicable,'' will be reported as a numeric zero (``0'') because the
PUDB is released as a numeric-only database.
b. Single-Family Data field 57: HOEPA Status
This new data field designates whether a single-family loan
acquired by the Enterprise is subject to HOEPA, as implemented in
Regulation Z, 12 CFR 226.32, because the APR or the points and fees on
the loan exceed the HOEPA triggers.\5\ The Enterprises have been
collecting and reporting the HOEPA status of single-family loans to
FHFA, but this data was not previously included in the PUDB. Fannie Mae
commented that, under its business policies, single-family mortgages
that are subject to HOEPA are not eligible for sale to Fannie Mae.
However, such loans can be purchased inadvertently by the Enterprises.
Freddie Mac did not comment on single-family HOEPA status.
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\5\ HOEPA applies to a ``consumer credit transaction that is
secured by the consumer's principal dwelling'' in which either the
APR, or the total points and fees payable by the consumer at or
before loan closing, exceed certain specified amounts.
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Accordingly, to conform to HMDA reporting requirements for HOEPA
status, FHFA has added this data element as new data field 57 in the
single-family Census Tract File.
c. Multifamily Data Field 50: Lien Status
This new data field identifies the lien status of the multifamily
loans acquired by the Enterprises. Unlike single-family lien status,
multifamily lien status is not currently included in the ``purpose of
loan'' data field in the multifamily matrix. Fannie Mae has collected
but not reported this data in the past. Freddie Mac confirmed that it
collects multifamily lien status data when it purchases mortgage loans
and currently provides this data to FHFA for housing goals purposes.
In response to FHFA's request, Freddie Mac and Fannie Mae provided
FHFA with the multifamily lien status data necessary to populate the
new multifamily lien status data field for the PUDB. However, Freddie
Mac stated that the multifamily lien status data field should be
identified in the PUDB as ``not applicable'' because of the
Enterprises' status as loan purchasers, making the argument (already
addressed above) that the HMDA instructions differentiate between the
reporting requirements and data element coding for originated versus
purchased loans.
Since the Enterprises have been collecting multifamily lien status
data, FHFA is requiring the Enterprises to report that data for
inclusion in new data field 50 for lien status in the multifamily
Census Tract File.
3. Data Element Currently Collected But Not Previously Reported--
Single-Family Data Field 58: Property Type
This new data field identifies the type of property securing the
loan acquired by the Enterprises. HMDA reporting requirements
differentiate the single-family property type data element as single-
family or manufactured housing. The Enterprises have not previously
been required to distinguish between single-family and manufactured
housing in their data reporting to FHFA.
In response to FHFA's request, Fannie Mae and Freddie Mac provided
FHFA with the requested single-family property type data. Fannie Mae
commented that it collects and reports manufactured housing data in a
manner different from that of HMDA reporters. Specifically, Fannie Mae
stated that the HMDA definition of ``manufactured home'' incorporates
the definition used by HUD and includes modular homes, while Fannie Mae
requires that manufactured housing be built on a permanent chassis that
is attached to a permanent foundation.
Subsequent discussions with Fannie Mae revealed that it
distinguishes between modular homes that are ``on-frame'' (i.e., built
on a permanent chassis and ready for occupancy upon leaving the factory
but not subject to HUD code standards) and ``off-frame'' (i.e., housing
that is not ready for occupancy upon leaving the factory but must be
constructed on-site). Fannie Mae indicated that it does not purchase
any loans relating to ``on-frame'' modular homes. Accordingly, it
appears that the types of loans that Fannie Mae purchases are secured
by manufactured homes that meet both the HMDA and HUD code standards.
Fannie Mae does purchase loans secured by off-frame modular homes
that need to be constructed on-site. However, these modular homes would
not qualify as ``manufactured homes'' under either HMDA's or HUD's
standards since they are not ready for occupancy upon leaving the
factory. These homes would be designated as single-family homes.
Fannie Mae also asserted that there are timing discrepancies with
regard to the reporting of data for the PUDB and HMDA. It stated that
lenders report to HMDA those loans that are purchased or originated in
the reporting year, while Fannie Mae reports to FHFA all mortgages
purchased in a year--whether originated in the current year or seasoned
loans. FHFA recognizes that because of these differences in the nature
of the PUDB and HMDA, timing differences in the reporting of single-
family property data are inevitable. Nevertheless, since this is a
HMDA-required data field (see 12 CFR 203.4(a)(4)), FHFA is required to
obtain such data from the Enterprises.
Accordingly, to conform to HMDA reporting requirements for property
type, FHFA has added property type, without modification, as new data
field 58 in the single-family Census Tract File.
C. HMDA Data Elements Not Incorporated in the PUDB, Consistent With
Section 304(j) of HMDA
Section 1326(d) of the Safety and Soundness Act, as amended,
provides that the information related to loan applicants' privacy
interests as described in section 304(j) of HMDA shall not be disclosed
to the public. Section 304(j) requires specifically that the following
PII not be disclosed to the public:
(1) The applicant's name and identification number;
[[Page 41186]]
(2) The date of the loan application; and
(3) The date of any determination by the lending institution with
respect to the application.
In addition, section 304(j) requires that any disclosure of
information must ensure that depository institutions are protected from
liability under any Federal or State privacy laws.
Consistent with section 304(j) of HMDA, the PUDB does not disclose
PII contained in loan data reported by the Enterprises to FHFA. FHFA
does not receive the loan applicant's name, identification number, or
date of loan application from the Enterprises. FHFA does receive the
date of the mortgage note, which is equivalent to the HMDA ``action
date'' for an originated loan, but FHFA does not release this
information in the PUDB files with the exception of single-family
National File B where it is released in data field 20 using the
following recoded values to protect PII: 1 = originated same calendar
year as acquired; 2 = originated prior to calendar year of acquisition;
or 9 = missing.
D. HMDA Data Elements Not Incorporated in the PUDB as Inapplicable
The HMDA data fields discussed below have not been incorporated in
the PUDB because they are inapplicable to Enterprise mortgage
purchases.
1. As of Year
This data field indicates the calendar year in which the HMDA data
are being released, and is created by the Federal Financial
Institutions Examination Council (FFIEC) in developing the publicly-
released HMDA database. Since it is not a data element required to be
reported by HMDA-reporting institutions, FHFA has not added this data
field to the PUDB.
2. Preapproval
This HMDA data element indicates whether the loan involved a
request by a household to the HMDA-reporting lender for preapproval of
a loan. FHFA has not added this data field to the PUDB because all
loans in the PUDB had to have been originated in order to be acquired
by the Enterprises.
3. Action Type
This HMDA data element indicates the type of action taken on the
loan by the HMDA-reporting lender, e.g., loan originated, application
approved but not accepted, application denied, application withdrawn,
or other specified reasons. FHFA has not added this data field to the
PUDB as all loans in the PUDB had to have been originated in order to
be acquired by the Enterprises.
4. Purchaser Type
This HMDA data element indicates the type of entity that purchased
the loan from the HMDA-reporting lender. FHFA has not added this data
field to the PUDB because the Enterprises are always the purchasers of
the loans disclosed in the PUDB and this data is released in data field
0, ``Enterprise flag'' (formerly called ``agency flag'').
5. Denial Reason 1-3
This HMDA data element indicates the reasons a loan was denied by
the HMDA-reporting lender. FHFA has not added this data field to the
PUDB because all of the loans in the PUDB had to have been originated
in order to be acquired by the Enterprises and, therefore, could not
have been denied.
6. Edit Status
This data field indicates the validity and/or quality status of the
data reported by the HMDA-reporting institution. The data field is
created by FFIEC in developing the publicly-released HMDA database.
Since the data field is not required to be reported by HMDA-reporting
institutions, and the data released to FHFA for inclusion in the PUDB
is certified as accurate by the Enterprises, FHFA has not added this
data field to the PUDB.
7. Application Date Prior 2004 Flag
This HMDA data field indicates why certain fields added to HMDA
reporting in 2004 were reported under pre-2004 reporting standards,
e.g., the expanded race/ethnicity fields. The data field was created by
FFIEC in developing the publicly-released HMDA database, and is based
on the date of the loan application reported by HMDA-reporting lenders.
The date of the loan application is private applicant information under
section 304(j) of HMDA, and the flag is now essentially moot as there
currently are few, if any, pre-2004 loan applications reported in the
HMDA database. Accordingly, FHFA has not added this data field to the
PUDB.
8. Multifamily: Occupancy
This HMDA data element identifies whether the property to which the
loan relates is to be owner-occupied as a principal residence. This
data field is not relevant to the PUDB multifamily Census Tract File
because the PUDB reports data for single-family and multifamily loans
in separate files, and multifamily properties, by definition, are
occupied by renters and thus not owner-occupied.
9. Multifamily: Type of Property
This HMDA data element identifies the type of property securing the
loan made by the HMDA-reporting lender. This data element is not
relevant to the Enterprise PUDB multifamily Census Tract File because
the PUDB reports data for single-family and multifamily loans in
separate files and, therefore, all loans in the multifamily files are,
by definition, secured by multifamily properties.
E. Technical Revisions to Data Fields in the PUDB Matrices
1. Conforming to Long-Standing PUDB Reporting Practice or Providing
Greater Clarity
FHFA has made technical revisions to certain data fields in the
PUDB matrices to conform the data fields to long-standing PUDB data
reporting practice or provide greater clarity, as further discussed
below.
a. Single-Family and Multifamily Data Field 1: Loan Number
This data field designates the sequence number assigned by FHFA in
the PUDB files that corresponds to the loan number assigned by the
Enterprise. FHFA has changed the description of this data field to
conform the description to the long-standing practice of using randomly
generated sequence numbers (and not random numbers as the previous
description suggested) to identify Enterprise mortgage loan purchases
in the PUDB. Each loan record is assigned a different sequence number
that is randomly generated within each file. Thus, the first loan
record in the Census Tract File is not also the first loan record in
the National File A or National File B with a very high degree of
probability. A similar change to the description of this data element
has been made in data field 1 of the multifamily matrix.
b. Single-Family and Multifamily Data Field 4: MSA Code
This data field designates the Metropolitan Statistical Area (MSA)
Code for the location of the property securing the Enterprise mortgage
loan. Consistent with long-standing PUDB data reporting practice, FHFA
has revised this data field in the single-family and multifamily Census
Tract Files to include a value ``99999'' for properties located outside
of an MSA (e.g., rural locations or micropolitan statistical areas). In
addition, consistent with long-standing PUDB data reporting practice,
FHFA has added in the matrix
[[Page 41187]]
for the Census Tract File a value entitled ``Other'' for properties
located in a specific MSA, which would be applicable to any 5-digit
number other than 00000 (for missing property location) or 99999.
c. Single-Family and Multifamily Data Field 6: County--2000 Census
This data field designates the county location of the property
securing the Enterprise mortgage loan. FHFA has renamed the data field
from ``County--1990 Census'' to ``County--2000 Census,'' as the
Enterprises have reported 2000 Census geography since 2003. The
reference in this and other data fields to the 2000 Census will be
updated to refer to the 2010 Census when applicable to a future PUDB.
d. Single-Family and Multifamily Data Field 7: Census Tract--2000
Census
This data field designates the census tract location of the
property securing the Enterprise mortgage loan. FHFA has renamed the
data field from ``Census Tract/BNA--1990 Census'' to ``Census Tract--
2000 Census,'' as the Enterprises have reported 2000 Census geography
since 2003, and Block Numbering Areas (BNAs) were phased out after the
1990 Census.\6\
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\6\ https://www.census.gov/geo/www/cen_tract.html.
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e. Single-Family and Multifamily Data Field 11: 2000 Census Tract--
Percent Minority
This data field designates the percentage of the population that
belongs to all minority groups in the census tract location of the
property securing the Enterprise mortgage. FHFA has renamed this data
field from ``1990 Census Tract--Percent Minority'' to ``2000 Census
Tract--Percent Minority,'' as the Enterprises have used 2000 census
tract demographic data since 2005.
f. Single-Family and Multifamily Data Field 12: 2000 Census Tract--
Median Income
This data field designates the family area median income (AMI) of
the census tract location of the property securing the Enterprise
mortgage. FHFA has renamed this data field from ``1990 Census Tract--
Median Income'' to ``2000 Census Tract--Median Income,'' as the
Enterprises have used 2000 census tract data since 2005.
g. Single-Family and Multifamily Data Field 13: 2000 Local Area Median
Income
This data field designates the AMI for the location of the property
securing the Enterprise mortgage, which is: The MSA for properties
located in an MSA; or the county or State non-metropolitan area for
properties located outside an MSA, whichever is greater. FHFA has
renamed this data element from ``1990 Local Area Median Income'' to
``2000 Local Area Median Income,'' as the Enterprises have used 2000
census tract data since 2005.
h. Single-Family Data Field 16: Area Median Family Income
This data field designates the AMI for the location of the property
securing the Enterprise mortgage for the reporting year (i.e., year of
mortgage acquisition by the Enterprise), which is: The MSA for
properties located in an MSA; or the county or State non-metropolitan
area for properties located outside an MSA, whichever is greater. FHFA
has eliminated the incorrect reference in the data field to ``withheld
as proprietary,'' as this data field has always been non-proprietary in
the single-family database.
i. Single-Family Data Field 17: Borrower Income Ratio
This data field identifies the ratio of the borrower's annual
income to the AMI (data field 16). FHFA has eliminated the incorrect
reference in the data field to ``withheld as proprietary,'' as this
data field has always been non-proprietary (i.e., only coded 9999 when
borrower income or AMI is unknown) in the single-family database.
j. Single-Family Data Field 25 and Multifamily Data Field 24: ``Special
Affordable, Seasoned Loan: Are Proceeds Recycled?''
This data field identifies the specific reasons in accordance with
12 CFR 1282.14(e) for an Enterprise claiming Special Affordable Housing
Goal credit for the Enterprise's purchase of loans that originated more
than one year prior to the date of acquisition. FHFA has expanded the
reporting codes for this data field to include additional reasons set
forth under 12 CFR 1282.14(e), as the Enterprises have reported their
mortgage data using these expanded codes since 2001.
k. Single-Family Data Field 27: Federal Guarantee
This data field identifies the source of the Federal guarantee or
insurance of the loan acquired by the Enterprise. The single-family
loan matrix previously included a code 4 for the purchase of a mortgage
that assists in maintaining the affordability of assisted units in
eligible multifamily housing projects with expiring contracts. The code
is not applicable to single-family transactions and already appears in
the multifamily loan matrix. Accordingly, FHFA has deleted this code
from the single-family loan matrix.
l. Single-Family Data Field 34 and Multifamily Data Field 33: Type of
Seller Institution
This data field identifies the type of seller of the loan to the
Enterprise. FHFA has expanded the reporting codes for this data field
to include additional types of sellers, as the Enterprises have
reported their mortgage data using these expanded codes since 2001. For
single-family National File B and the multifamily Census Tract File,
FHFA is preserving the prior PUDB data field recoding, which is: 1 =
Mortgage Company; 2 = SAIF Insured Depository Institution; 3 = BIF
Insured Depository Institution; 4 = NCUA Insured Credit Union; 5 =
Other. The prior PUDB data field recoding is also preserved for the
multifamily National File.
m. Single-Family Data Field 38 and Multifamily Data Field 36:
Acquisition Type
This data field identifies the type of acquisition by the
Enterprise (e.g., credit enhancement, purchase of State or local
mortgage revenue bond). FHFA has expanded the reporting codes for this
data field to include additional acquisition types, as the Enterprises
have reported their mortgage data using these expanded codes since
2003. Fannie Mae noted that the proposed addition of the acquisition
type code of ``61 = asset management refinance'' is not applicable to
single-family transactions and already appears in the multifamily loan
matrix. FHFA agrees with this comment and, as a result, has not
included this code in the single-family matrix.
2. Conforming to New Statutory Requirements
FHFA has made technical revisions to certain data fields and
references in the PUDB matrices to conform to the new HERA
requirements, as further discussed below.
a. Single-Family Data Field 15: Borrower's (or Borrowers') Annual
Income
This data field identifies the borrower's or borrowers' annual
income, which is the numerator of the borrower income ratio reported in
data field 17. To be consistent with HMDA reporting requirements, FHFA
is now rounding the values reported for this data field to the nearest
$1,000 (where values of $500 or more are rounded up) of the
[[Page 41188]]
borrower's annual income, in addition to the current practice of
recoding in terms of dollars for year of acquisition.
b. Single-Family Data Field 18 and Multifamily Data Field 17:
Acquisition UPB
Consistent with section 1323(b)(2) of the Safety and Soundness Act,
as amended,\7\ FHFA is not applying the same methods that previously
were used to mask loan acquisition UPB data, i.e., FHFA has removed the
topcoding and the use of categories in reporting acquisition UPB that
previously were applied to this data field as described in the single-
family matrix. The loan acquisition UPB is rounded to the nearest
$1,000 (where values of $500 or more are rounded up), consistent with
HMDA reporting requirements. Similarly, the multifamily loan
acquisition UPB data is rounded to the nearest $1,000 (where values of
$500 or more are rounded up) to conform to HMDA reporting practice.
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\7\ Section 1323(b)(2) prohibits the Director from restricting
public access to the data elements required to be reported under
HMDA at the census tract level.
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The Enterprises collect two values of UPB, both of which correspond
to the HMDA data field ``loan amount'': Acquisition UPB and origination
UPB. Historically, they have reported, and the PUDB has included,
acquisition UPB. Because this HMDA data element is rounded to the
nearest $1000, and because the majority of loans acquired by the
Enterprises are current-year originations for which there is a
negligible amount of amortization between origination and acquisition,
there is no difference between the values in most cases. FHFA will
continue to include acquisition UPB in the PUDB.
c. References to ``Enterprises'' and Regulatory Cites
To reflect revisions in terminology as a result of the enactment of
HERA, FHFA has changed the references to ``GSEs'' in the PUDB matrices
to ``Enterprises.'' The PUDB is applicable only to loan data submitted
by the Enterprises, i.e., Fannie Mae and Freddie Mac. The PUDB is not
applicable to loan data submitted by the Banks, which are also GSEs but
are subject to separate PUDB reporting requirements. The regulatory
cites in the PUDB matrices have also been revised, as the applicable
regulatory provisions are now located in Title 12 of the Code of
Federal Regulations.
V. Proposed Data Elements Not Currently Collected That Will Not Be
Included in the PUDB
FHFA had originally considered requiring the reporting and public
release of data fields for multifamily borrower and co-borrower race or
national origin, multifamily borrower and co-borrower ethnicity,
multifamily borrower and co-borrower gender, multifamily rate spread,
multifamily HOEPA status, respondent ID and agency code. After
considering the Enterprises' comments, and upon further review of the
statutory requirements, as discussed in Section I.B. above, FHFA has
determined that the Enterprises are not required under HERA to report
these data elements as they do not currently collect these data. The
Enterprises presented additional arguments for why they should not be
required to collect and report these data, which are discussed below.
A. Multifamily Borrower and Co-Borrower Race or National Origin;
Multifamily Borrower and Co-Borrower Ethnicity; and Multifamily
Borrower and Co-Borrower Gender
FHFA considered adding new HMDA data fields to the PUDB that would
have identified multifamily borrower and co-borrower race or national
origin, multifamily borrower and co-borrower ethnicity, and multifamily
borrower and co-borrower gender. Both Fannie Mae and Freddie Mac
commented that they do not collect race, national origin, ethnicity, or
gender for their multifamily loan purchases since the vast majority of
their multifamily mortgage business involves non-natural persons (e.g.,
limited liability companies, corporations). Freddie Mac stated that
HMDA does not require these data elements to be reported for loans
involving a borrower or applicant that is not a natural person (citing
to 12 CFR part 203, App. A at I.D.1), or by secondary market loan
purchasers (citing to 12 CFR 203.4(b)(2)). In addition, both Fannie Mae
and Freddie Mac claimed that collecting such data would involve
considerable expense and significant additional work and resources.
Freddie Mac requested that FHFA consider these data elements to be
optional and reportable as ``not applicable'' in accordance with HMDA
reporting requirements for purchased loans.
Since the Enterprises are not currently collecting these data, and
the data point is not a HMDA data element for the great majority of
multifamily loans that the Enterprises purchase, as to which the
borrowers are non-natural persons, and collecting the data would impose
a substantial additional burden on the Enterprises while they are in
conservatorship, FHFA is not requiring the Enterprises to collect and
report these data for inclusion in the PUDB.
B. Multifamily Rate Spread
FHFA considered adding a new HMDA data field to the PUDB that would
have designated the difference between the APR and the applicable
Treasury rate for multifamily mortgages acquired by the Enterprise.
Both Enterprises commented that they do not collect multifamily rate
spread, and maintained that this data field is not applicable to
multifamily lending under Regulation Z (12 CFR 226.1(c), which
implements the Truth in Lending Act) and HOEPA. Fannie Mae contended
that, for loans subject to Regulation Z, the reporting entity is
required to provide information on certain ``high-priced mortgage
loans,'' but stated that Regulation Z does not apply to extensions of
credit to non-natural persons (citing to 12 CFR 226.3(a)(2)). Freddie
Mac asserted that HMDA does not require the collection and reporting of
data for purchased loans, and both Enterprises stated that requiring
the collection of this data would involve considerable expense and
impose a significant regulatory burden.
Since the Enterprises are not currently collecting this data, and
the data point is not a HMDA data element for the great majority of
multifamily loans that the Enterprises purchase, as to which the
borrowers are non-natural persons, and collecting the data would impose
a substantial additional burden on the Enterprises while they are in
conservatorship, FHFA is not requiring the Enterprises to collect and
report this data for inclusion in the PUDB.
C. Multifamily HOEPA Status
FHFA considered adding a new HMDA data field to the PUDB that would
have designated whether the multifamily loan acquired by the Enterprise
is subject to HOEPA because the APR or the points and fees on the loan
exceed the HOEPA triggers. Both Enterprises stated that they do not
collect multifamily HOEPA status and, for the reasons discussed under
the multifamily rate spread discussion above, maintained that this data
field is also not applicable to multifamily lending under Regulation Z
and HOEPA. Fannie Mae also stated that HOEPA applies ``to a consumer
credit transaction that is secured by the consumer's principal
dwelling'' and does not apply to multifamily properties.
[[Page 41189]]
For the reasons stated with respect to the multifamily data
elements discussed above, FHFA is not requiring the Enterprises to
collect and report this data for inclusion in the PUDB.
D. Single-Family and Multifamily Respondent ID and Agency Code
FHFA considered adding new HMDA data fields to the PUDB that would
have designated the identification number (respondent ID) assigned by a
HMDA-reporting lender's regulatory agency to the institution that
reported the loan, and the code of the regulatory agency (agency code)
for the HMDA-reporting lender that provided the loan to the borrower.
The Enterprises have not been collecting respondent IDs and agency
codes for their single-family or multifamily loan purchases.
Fannie Mae and Freddie Mac opposed inclusion in the PUDB of the
respondent ID and agency code data fields, claiming that these are not
required HMDA data fields, as described in Regulation C (citing to 12
CFR 203.4(a)) and, therefore, they are not data elements required to be
repo