Notice of Order: Revisions to Enterprise Public Use Database Incorporating High-Cost Single-Family Securitized Loan Data Fields and Technical Data Field Changes, 60031-60046 [2011-24791]

Agencies

• FEDERAL HOUSING FINANCE AGENCY

[Federal Register Volume 76, Number 188 (Wednesday, September 28, 2011)]
[Notices]
[Pages 60031-60046]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-24791]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2011-N-11]


Notice of Order: Revisions to Enterprise Public Use Database 
Incorporating High-Cost Single-Family Securitized Loan Data Fields and 
Technical Data Field Changes

AGENCY: Federal Housing Finance Agency.

ACTION: Notice of Order.

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SUMMARY: Section 1127 of the Housing and Economic Recovery Act of 2008 
(HERA) amended section 1326 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (Safety and Soundness Act) 
by requiring that, subject to privacy considerations as described in 
section 304(j) of the Home Mortgage Disclosure Act of 1975 (HMDA), the 
Director of the Federal Housing Finance Agency (FHFA) shall make public 
certain data related to high-cost single-family loans purchased and 
securitized by the Federal National Mortgage Association (Fannie Mae) 
and the Federal Home Loan Mortgage Corporation (Freddie Mac) 
(collectively, the Enterprises) collected by the Director under section 
1324(b)(6) of the Safety and Soundness Act, as amended by HERA. See 12 
U.S.C. 4544(b)(6), 4546(d).
    FHFA has adopted an Order that implements the changes required by 
HERA by revising the single-family matrix in FHFA's Public Use Database 
(PUDB) to include data fields for the high-cost single-family 
securitized loans data in a new National File C, effective for 2010 and 
beyond. The Order also makes technical changes to the single-family and 
multifamily data matrices of the PUDB, effective for 2010 and beyond, 
to conform the data fields to existing PUDB data reporting practices 
and HERA changes. This Notice of Order sets forth FHFA's Order with 
accompanying Appendix containing the revised single-family and 
multifamily matrices, and describes the new and revised data fields.

DATES: Effective Date of the Order: The Order with accompanying 
Appendix is effective on September 21, 2011.

FOR FURTHER INFORMATION CONTACT: For questions on data or methodology, 
contact: Brian Doherty, Supervisory Policy Analyst, (202) 408-2991, or 
Ian Keith, Senior Program Analyst, (202) 408-2949, Office of Housing & 
Regulatory Policy, 1625 Eye Street, NW., Washington, DC 20006. 
mailto:Ian.Keith@fhfa.gov. For legal questions, contact: Sharon Like, 
Managing Associate General Counsel, (202) 414-8950, Office of General 
Counsel, 1700 G Street, NW., Fourth Floor, Washington, DC 20552. 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. The Enterprises

    The Enterprises are government-sponsored enterprises 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. 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.
    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, 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.
    On September 6, 2008, the Director of FHFA (Director) 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 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, by regulation or order, 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 [E]nterprise, 
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.'' See 12 U.S.C. 4544(b)(6).
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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.
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    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

[[Page 60032]]

year to which the data relates. 12 U.S.C. 4543(d).\2\
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    \2\ FHFA's Order revises the single-family and multi-family data 
matrices, effective for 2010 and beyond. The Enterprises' HMDA rate 
spread submissions for 2008-2009 indicate that the HMDA rate spread 
is of questionable value for those years. See discussion in section 
V. below.
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    HERA also amended the Safety and Soundness Act to make changes to 
the Enterprise housing goals and related definitions. The previous low- 
and moderate-income housing goal, special affordable housing goal, and 
underserved areas housing goal are no longer effective commencing in 
2010. See 12 U.S.C. 4561 through 4563. HERA required the Director of 
FHFA to establish new housing goals effective for 2010 and beyond. The 
new housing goals include four goals for single-family, owner-occupied 
housing, one multifamily special affordable housing goal, and one 
multifamily special affordable housing subgoal. The single-family 
housing goals target purchase money mortgages for low-income families, 
families that reside in low-income areas, and very low-income families, 
and refinancing mortgages for low-income families. See 12 U.S.C. 4562. 
The multifamily special affordable housing goal targets multifamily 
housing affordable to low-income families, and the multifamily special 
affordable housing subgoal targets multifamily housing affordable to 
very low-income families. See 12 U.S.C. 4563. HERA amended the 
definition of ``very low-income'' from 60 percent or less of area 
median income (AMI) to 50 percent or less of AMI. See 12 U.S.C. 
4502(24).

C. Description of Enterprise Reporting and Current PUDB Matrices

    The PUDB matrices are data dictionaries that 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 reported to FHFA by the Enterprises, 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 currently 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 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. The Enterprises also 
separately report to FHFA certain single-family and multifamily 
mortgage data for safety and soundness and other regulatory purposes.

II. Summary of Order's Revisions to Single-Family and Multifamily 
Matrices in PUDB

    FHFA has adopted the Order below which revises the PUDB single-
family matrix to incorporate a new National File C containing new data 
fields applicable to 2010 and subsequent years for the single-family 
high-cost securitized loans purchased and securitized by the 
Enterprises. Specifically, National File C contains the following data 
fields related to the section 1324(b)(6) high-cost securitized loan 
characteristics: Purchase Price; Loan-to-Value Ratio (LTV) at 
Origination (also released in National File A); Product Type; Term of 
Mortgage at Origination; Amortization Term; Interest Rate at 
Origination; Credit Score; Portfolio Flag; and Percent Repurchased. In 
addition, National File C includes the following other relevant data 
fields also released in mortgage-level National File A: Enterprise 
Flag; Loan Number; 2000 Census Tract--Percent Minority; Tract Income 
Ratio; Borrower Income Ratio; Purpose of Loan; and Federal Guarantee. A 
more detailed discussion of National File C is contained in Section 
III. below.
    In addition, the Order makes technical changes to the single-family 
and multifamily data matrices of the PUDB applicable to 2010 and 
subsequent years to conform the data fields to existing PUDB data 
reporting practices and HERA changes.
    Both the Order and Appendix containing the revised single-family 
and multifamily matrices are set forth at the end of this Notice of 
Order. PUDB Data Dictionaries that further describe the revised single-
family PUDB files and the new National File C, along with the revised 
multifamily PUDB files, will be made available on FHFA's public Web 
site at https://www.fhfa.gov/Default.aspx?Page=137.

III. Revisions to Single-Family Matrix in PUDB for High-Cost 
Securitized Loans

    As discussed above, sections 1324(b)(6) and 1326(d)(2) of the 
Safety and Soundness Act require FHFA to publicly disclose the 
following data characteristics of single-family high-cost loans 
purchased and securitized by the Enterprises that are not held on 
portfolio, or are retained on portfolio or repurchased by the 
Enterprises: (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. Section 1324(b)(6) 
does not define the term ``high-cost'' or the other loan characteristic 
terms in paragraphs (A) through (D), necessitating that FHFA define the 
terms in order to implement the requirements of HERA. The data fields 
added in National File C for these high-cost loans and their 
definitions are described below.
    The new data fields 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 HERA. However, certain data fields are recoded 
differently from other single-family PUDB Files, or disclosed in 
National File C by ranges or categories, in order to minimize the 
possibilities for cross-linking of data elements with data fields in 
the other single-family PUDB Files and any resulting disclosure of 
confidential or proprietary information or personally identifiable 
information.
    The Safety and Soundness Act, as amended by HERA, does not define 
the term ``high-cost.'' Accordingly, FHFA has discretion to define the 
term. There is no direct HERA legislative history providing guidance on 
the meaning of the term from which FHFA might draw in exercising that 
discretion. There are a variety of loan attributes in FHFA's databases 
that could be used, singularly or in some combination, to define the 
``high-cost'' loans selected for inclusion in the PUDB. These loan 
characteristics include the HMDA rate spread, original mortgage 
interest rate, LTV, and borrower credit score. Another option is to 
define ``high-cost'' loan using the Home Ownership and Equity 
Protection Act (HOEPA) ``high-cost mortgage'' definition.
    After considering these various options, FHFA has decided to define 
``high-cost'' loans by reference to the HMDA rate spread. The HMDA rate 
spread is a data field reported by lenders pursuant to HMDA that is 
released annually by the Federal Financial Institutions Examination 
Council (FFIEC). These loans are identified in Federal Reserve Board 
(FRB) analyses as ``higher-priced''

[[Page 60033]]

loans.\3\ For 2010 and beyond, the HMDA rate spread represents the 
difference between the Annual Percentage Rate (APR) and a survey-based 
estimate of APRs currently offered on prime mortgage loans of a 
comparable type. For mortgage loans with an application date prior to 
October 1, 2009, the minimum rate spread that must be reported by 
lenders for first liens is generally 3.0 percent. For mortgage loans 
with an application date on or after October 1, 2009, the minimum rate 
spread that must be reported by lenders for first liens is 1.5 
percent.\4\ See 12 CFR 203.4(a)(12). FHFA will use the HMDA rate spread 
data in FHFA's databases to select the ``high-cost'' loans for 
inclusion in National File C.
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    \3\ https://federalreserve.gov/pubs/bulletin/2010/pdf/2009_HMDA_final.pdf at page A39 for example.
    \4\ https://www.ffiec.gov/ratespread/newcalc.aspx.
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    FHFA has adopted the HMDA rate spread definition as the definition 
of ``high-cost'' because it has a logical relation to heightened cost 
by virtue of being a rate spread, is simple and widely understood, and 
because the Enterprises have purchased significant numbers of such 
loans, it appears to divide loans into categories in a way that 
meaningfully implements the statutory purpose.\5\ Further, because the 
Enterprises may continue to purchase loans with HMDA rate spreads, the 
Enterprises and FHFA have processes to capture this loan data for 
inclusion in the PUDB and for performing the comparative analysis, 
thereby enabling implementation of the HERA requirement.
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    \5\ Defining ``high cost'' as the HMDA rate spread is not, in 
and of itself, a statement as to whether the loan was originated 
through subprime lending channels.
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    Based on the data reported by the Enterprises, in 2010, Freddie Mac 
did not purchase and securitize any first mortgages with a HMDA rate 
spread at or above 1.5 percent. Fannie Mae purchased and securitized a 
total of 13,841 first mortgages (with an unpaid principal balance (UPB) 
of $2.08 billion) with a HMDA rate spread. Of these total loans, 834 
loans (with a UPB of $139.9 million) were repurchased as of year-end, 
and 13,007 loans (with a UPB of $1.94 billion) were not repurchased as 
of year-end. The 834 loans repurchased represent 6 percent of the total 
loans (6.7 percent of UPB) with a validly identified rate spread that 
were purchased and securitized during 2010.
    FHFA considered whether to define ``high-cost'' loan according to 
the HOEPA ``high-cost mortgage'' definition in section 103(aa) of the 
Truth in Lending Act (TILA), as added by the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act).\6\ Prior to the 
Dodd-Frank Act, the term ``high-cost'' was not used in section 103(aa) 
with respect to mortgages subject to HOEPA, and residential mortgage 
transactions were exempted from coverage. However, the term ``high-
cost'' mortgage had been used in previous proposed amendments to TILA, 
and has been used by federal regulators for many years to refer to 
HOEPA loans. Section 103(aa) of TILA define a ``high cost mortgage'' 
generally as a consumer credit transaction that is secured by a first 
mortgage on the consumer's principal dwelling, including residential 
mortgage transactions, where the APR is more than 6.5 percentage points 
above the average prime offer rate (APOR) for a comparable 
transaction.\7\ Loans meeting the ``high-cost mortgage'' definition are 
subject to other requirements of HOEPA. The new 6.5 percentage points 
rate spread trigger is lower than the 8 percentage points trigger 
(based on the yield on Treasury securities having a comparable period 
of maturity) in FRB's regulation in effect prior to enactment of the 
Dodd-Frank Act.\8\
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    \6\ Public Law. No. 111-203 (July 21, 2010).
    \7\ 15 U.S.C. 1602(aa) (as amended). The definition of ``high-
cost mortgage'' in TILA, as amended, includes a separate rate spread 
trigger for subordinate mortgages and mortgages secured by personal 
property dwellings, as well as for mortgages with certain other 
features, such as points and fees, that exceed specified thresholds.
    \8\ See 12 CFR 226.32(a)(1)(i).
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    However, the Enterprises do not, and, at the time HERA was under 
consideration in Congress, did not, acquire HOEPA loans other than the 
few loans purchased through lender errors, which are then subject to 
recourse.\9\ In addition, the Enterprise housing goals regulation does 
not give credit for Enterprise purchases of HOEPA loans and, in fact, 
discourages their purchase by including these loans in housing goal 
denominators.\10\ Thus, using the HOEPA definition, there would be no 
loan data for FHFA to analyze and publicly release, and FHFA would not 
be implementing the HERA high-cost loan requirements. More 
significantly, using the HOEPA definition would appear to defeat the 
purpose of the statutory provision, which appears to assume that there 
is a meaningful population of loans to be distinguished and which was 
adopted at a time when there was no meaningful population of Enterprise 
HOEPA loans.
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    \9\ The Enterprises' Seller/Servicer Guides specifically 
prohibit the purchase of HOSPA loans. See Fannie Mae's 2010 Selling 
Guide, section A3-2-02, and Freddie Mac's Single-Family Seller/
Servicer Guide, Volume 1, Chapter 22.33.
    \10\ See 12 CFR 1282.16(d).
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    FHFA also considered whether to define ``high-cost'' loan based on 
some appropriate combination of high original mortgage interest rate, 
low credit score, and high LTV, which data is available in FHFA's 
databases. For example, a ``high-cost'' loan could be defined as a loan 
with an interest rate above 6 percentage points, a borrower credit 
score below 660, and an LTV greater than 80 percent. These loan 
characteristics, at specific cutoff values, can be associated with 
loans that would be considered high-cost by many analysts. However, 
this definition would not conform with either the HOEPA ``high-cost 
mortgage'' or the HMDA ``higher-priced'' loan definitions, and may 
differ from industry usage of the term. The specific cutoff values 
adopted by FHFA would be subjective, and other cutoff values may be 
equally defensible. The current economic environment may also influence 
the selection of the cutoffs, e.g., periods of declining interest 
rates, as in 2008-2009, would result in a different cutoff than periods 
where interest rates are rising. In addition, credit scores would not 
be directly comparable across years. For example, a credit score of 660 
in one year may be ``better'' or ``worse'' than the same score in a 
different year. Finally, the loan characteristics could also be 
expected to vary by product type, e.g., fixed rate mortgage v. 
adjustable rate mortgage.

A. Single-Family Data Field 61: Purchase Price

    Section 1324(b)(6)(A), in conjunction with section 1326(d)(2), 
requires public disclosure of the purchase price of the property with 
respect to the high-cost securitized loan. New data field 61 in 
National File C designates the purchase price of the property for the 
high-cost securitized loan, as reported by the Enterprises to FHFA. 
Where the purchase price is not available, FHFA will attempt to 
estimate the purchase price by dividing the origination unpaid 
principal balance (UPB) field by the LTV at origination. The reported 
or estimated values will be rounded to the nearest $1,000, consistent 
with the release of HMDA data fields in the PUDB. The value 
``999999999=Missing'' will be used where the purchase price cannot be 
obtained through either method and is then considered missing.

B. Single-Family Data Field 19: Loan-to-Value Ratio (LTV) at 
Origination (or CLTV Where Available)

    Section 1324(b)(6)(B), in conjunction with section 1326(d)(2), 
requires public

[[Page 60034]]

disclosure of ``the loan-to-value ratio of the mortgage, which shall 
reflect any secondary liens on the relevant property,'' with respect to 
the high-cost securitized loan. Combined LTV (CLTV) is the ratio of the 
total loan amount to the value of the property, with the total loan 
amount consisting of the UPB at origination of the first lien and any 
subordinate liens. Data field 19 in National File C designates the LTV 
at origination, or CLTV where available, for the high-cost securitized 
loan. Consistent with the recoding in National File A, the data will be 
released in National File C using the following values: 1 = >0-<=60%; 2 
= >60-<=80%; 3 = >80-<=90%; 4 = >90-<=95%; 5 = >95%; 9 = Missing. Both 
Enterprises currently collect and report CLTV to FHFA and will be 
required to continue reporting this data for purposes of the PUDB and 
comparative analysis in subsequent years.
    In recent years, the Enterprises' purchases of single-family 
secondary liens have been statistically insignificant in number as they 
have purchased few, if any, such liens. Secondary liens are priced and 
underwritten very differently from first liens, and their LTVs are not 
always available or reported by originators in a consistent manner. In 
addition, inclusion of secondary lien LTVs in National File C could 
allow for cross-linking with other single-family PUDB Files and the 
potential release of personally identifiable information. For these 
reasons, FHFA is not including single-family secondary liens in 
National File C.

C. Terms of the Mortgage--Single-Family Data Field 26: Product Type; 
Single-Family Data Field 29: Term of Mortgage at Origination; Single-
Family Data Field 30: Amortization Term; Single-Family Data Field 62: 
Interest Rate at Origination

    Section 1324(b)(6)(C), in conjunction with section 1326(d)(2), 
requires public disclosure of ``the terms of the mortgage'' with 
respect to the high-cost securitized loan. The terms of a mortgage in 
the housing finance industry are generally based on product type, 
interest rate, and duration (term of mortgage at origination and 
amortization term). Accordingly, data based on product type, interest 
rate and duration will be released in the PUDB under the data fields 
further described below.
1. Single-Family Data Field 26: Product Type
    Data field 26, released in National File C, designates the product 
type for the high-cost securitized loan, which will be released using 
the following values: 1 = Fixed-Rate Mortgage; 2 = ARM (Adjustable Rate 
Mortgage); 3 = Other; 9 = Missing. ``Other'' can include products such 
as graduated equity or graduated payment mortgages, balloon mortgages, 
and home equity conversion mortgages.
2. Single-Family Data Field 29: Term of Mortgage at Origination
    Data field 29, released in National File C, designates the term of 
the high-cost securitized loan at origination, which will be released 
using the following values: 1 = 30-year; 2 = 15-year; 3 = Other terms; 
9 = Missing.
3. Single-Family Data Field 30: Amortization Term
    Data field 30, released in National File C, designates the 
amortization term of the high-cost securitized loan, which will be 
released using the following values: 1 = 30-year; 2 = 15-year; 3 = 
Other terms including non-amortizing loans; 9 = Missing.
4. Single-Family Data Field 62: Interest Rate at Origination
    New data field 62, released in National File C, designates the 
contract interest rate of the high-cost securitized loan at 
origination, which will be released as ranges using the following 
values: 1 = less than 4.00%; 2 = 4.00-<4.50%; 3 = 4.50-<5.00%; 4 = 
5.00-<5.50%; 5 = 5.50-<6.00%; 6 = 6.00-<6.50%; 7 = 6.50-<7.00%; 8 = 
7.00-<7.50%; 9 = 7.50-< 8.00%; 10 = 8.00% or greater; 99 = Missing. The 
Enterprises collect and report the note's original interest rate.

D. Creditworthiness of the Borrower--Single-Family Data Field 60: 
Credit Score

    Section 1324(b)(6)(D), in conjunction with section 1326(d)(2), 
references ``creditworthiness of the borrower'' as a loan 
characteristic required to be publicly disclosed with respect to the 
high-cost securitized loan. FHFA believes that borrower credit score 
best captures the concept of creditworthiness of the borrower, as the 
common regulatory and industry definitions of creditworthiness 
gravitate towards the use of proprietary credit scores computed by 
credit reporting companies.
    FHFA currently receives multiple borrower credit score information 
in the form of credit scores from the Enterprises, representing each 
borrower, credit reporting agency and date associated with the credit 
score issuance. New data field 60, released in National File C, 
designates the borrower credit score most applicable to the high-cost 
securitized loan. This credit score is derived by first selecting from 
all of the borrower's credit scores only the scores between 300 and 
1000, which FHFA views as a reasonable range of credit score values. 
The earliest credit score date of those scores, i.e., the date closest 
to the loan origination date, is then identified, and only those scores 
having that date are selected. The lowest borrower number of those 
remaining scores, which represents the primary borrower, is then 
identified and only those scores having that borrower number are 
selected. Finally, the lowest credit score of those remaining scores is 
selected as the score most likely to be reflected in determining the 
loan's interest rate and resulting HMDA rate spread. The data will be 
released using the following values: 1 = less than 620; 2 = 620-<660; 3 
= 660-<700; 4 = 700-<760; 5 = 760 or greater; 9 = Missing.

E. Other Relevant Data

    Section 1324(b)(6)(E), in conjunction with section 1326(d)(2), 
requires public disclosure of any other relevant data with respect to 
the high-cost securitized loan, as determined by the Director. 
Inclusion in National File C of certain fields that are also included 
in other PUDB Files will allow useful comparisons of the high-cost 
securitized loan data to data in those other Files.
    Specifically, the following fields will be released in National 
File C: Data field 0: Enterprise Flag (indicating whether the loan was 
purchased by Fannie Mae or Freddie Mac); data field 1: Loan Number 
(released as Sequential Number); data field 11: 2000 Census Tract-
Percent Minority (minority population in the census tract where the 
property securing the loan is located); data field 14: Tract Income 
Ratio (ratio of tract median income to the applicable AMI); data field 
17: Borrower Income Ratio (ratio of borrower's income to the applicable 
area median income); data field 22: Purpose of Loan (home purchase or 
refinance/other); and data field 27: Federal Guarantee (conventional 
loan or Federally guaranteed or insured).
    The data will be included in National File C without providing 
sufficient linking variables to associate the more sensitive data 
(credit score and interest rate) to loans at the tract level in the 
Census Tract File. In particular, the HMDA rate spread field will not 
be released in National File C as this field is already released in the 
Census Tract File as required by HERA.

[[Page 60035]]

F. Not Held on Portfolio or Retained on Portfolio--Single-Family Data 
Field 63: Portfolio Flag; Single-Family Data Field 64: Percent 
Repurchased

    Section 1324(b)(6) requires FHFA to compare the characteristics 
discussed above of high-cost loans purchased and securitized, 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.
1. Single-Family Data Field 63: Portfolio Flag
    New data field 63, released in National File C, designates the 
following values:
    1 = Not held on portfolio: Indicates the security backed by the 
high-cost loan was sold in its entirety by the Enterprise during the 
calendar year and not repurchased as of year-end.
    2 = Retained on portfolio: Indicates the security backed by the 
high-cost loan was sold in its entirety by the Enterprise during the 
calendar year, but that all or a portion of the security collateralized 
by such high-cost loan was repurchased by the Enterprise during such 
calendar year and held at year-end.
    These two data field values are intended to categorize the universe 
of loans with a HMDA rate spread that are purchased and securitized by 
the Enterprises.
2. Single-Family Data Field 64: Percent Repurchased
    To accurately reflect the economic value of the high-cost 
securitized loans retained on portfolio, new data field 64, released in 
National File C, identifies the percentage of the outstanding balance 
of the security collateralized by the high-cost loan that the 
Enterprise repurchased during the calendar year and held at year-end. 
Where the Enterprise did not repurchase any portion of the security 
(portfolio flag = 1), the value will be 0. Where the Enterprise 
repurchased all of the security (portfolio flag = 2), the value will be 
1. Where the Enterprise repurchased a portion of the security 
collateralized by the high-cost loan (portfolio flag = 2), the value 
will be the percentage of the security repurchased by the Enterprise 
represented as a decimal between 0 and 1.

IV. Technical Revisions to Data Fields in the PUDB Matrices

A. Revisions To Conform to Existing PUDB Reporting Practices

    FHFA has made technical revisions to certain data fields in the 
PUDB matrices to conform the data fields to existing PUDB data 
reporting practices, as further discussed below.
1. Single-Family Data Field 23: Cooperative Unit Mortgage
    This data field identifies single-family housing units that are 
part of a cooperative building secured by a mortgage or ``blanket 
loan.'' FHFA no longer requires the Enterprises to report this data for 
housing goals purposes. Accordingly, footnote (7) to this data field in 
the single-family matrix indicates that this data field is not 
applicable for 2010 and beyond.
2. Single-Family Data Field 28: RTC/FDIC
    This data field identifies loans purchased by the Enterprises that 
were made by the Resolution Trust Corporation (RTC) or the Federal 
Deposit Insurance Corporation (FDIC) and met certain other statutory 
criteria. FHFA no longer requires the Enterprises to report this data 
for housing goals purposes. Accordingly, footnote (7) to this data 
field in the single-family matrix indicates that the data field is not 
applicable for 2010 and beyond.
3. Single-Family and Multifamily Data Fields 31 and 30: Lender 
Institution Name; Single-Family and Multifamily Data Fields 32 and 31: 
Lender City; Single-Family and Multifamily Data Fields 33 and 32: 
Lender State
    These data fields identify the name, city and state of the lender 
that sold the loan to the Enterprise. FHFA no longer requires the 
Enterprises to report this data for housing goals purposes. 
Accordingly, footnotes (7) and (5) to this data field in the single-
family and multifamily matrices, respectively, indicate that this data 
field is not applicable for 2010 and beyond.
4. Single-Family Data Field 37: Mortgage Purchased Under Enterprise's 
Community Lending Program
    This data field identifies mortgages purchased under Enterprise-
specific landing programs. FHFA no longer requires the Enterprises to 
report this data for housing goals purposes. Accordingly, footnote (7) 
to this data field in the single-family matrix indicates that this data 
field is not applicable for 2010 and beyond.
5. Single-Family Data Field 39 and Multifamily Data Field 37: 
Enterprise Real Estate Owned
    This data field identifies properties owned by an Enterprise as a 
result of foreclosure or other impairment. FHFA no longer requires the 
Enterprises to report this data for housing goals purposes. 
Accordingly, footnotes (7) and (5) to this data field in the single-
family and multifamily matrices, respectively, indicate that the data 
field is not applicable for 2010 and beyond.
6. Multifamily Data Field 38: Public Subsidy Program
    This data field identifies the type of public subsidy, if 
applicable, provided in connection with a multifamily loan purchased by 
an Enterprise. FHFA no longer requires the Enterprises to report this 
data for housing goals purposes. Accordingly, footnote (5) to this data 
field in the multifamily matrix indicates that this data field is not 
applicable for 2010 and beyond.

B. Revisions to Conform to HERA Changes

1. Single-Family Data Field 17: Borrower Income Ratio
    This data field identifies the ratio of the borrower's annual 
income (data field 15) to the AMI (data field 16). Effective for 2010 
and beyond, HERA eliminated the previous low- and moderate-income 
housing goal (100 percent of AMI or below) and special affordable 
housing goal (which includes units affordable at 60 percent of AMI or 
below) and, among other things, established new single-family housing 
goals for low-income families (80 percent of AMI or below) and very 
low-income families (defined by HERA as 50 percent of AMI). 
Accordingly, footnote (7) to data field 17 in the single-family matrix 
indicates that the pre-HERA income categories therein are not 
applicable to 2010 and beyond. FHFA has revised the income categories 
in data field 17a to reflect the new HERA income limits effective for 
2010 and beyond, as indicated in footnote (8) of the single-family 
matrix.
2. Multifamily Data Field 16: Affordability Category
    This data field identifies loans purchased by an Enterprise secured 
by multifamily properties having a mix of other affordable units such 
that those units in the property affordable at more than 60 percent but 
at or below 80 percent of AMI received credit under the pre-HERA 
special affordable housing goal regardless of property location. 
Specifically, category 1 of the data field specifies: >=20% are 
especially-low-income, and <40% are very-low-income. Prior to HERA, the 
term ``especially-low-income'' was defined by regulation as 50 percent 
or less of AMI. See 24 CFR 81.17(d), 81.18(d), 81.19(d). The term 
``very-low-income'' was defined in the Safety and

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Soundness Act as 60 percent or less of AMI. The mix of units at or 
below 50 percent or 60 percent of AMI also indicates that a property 
may be eligible for Low-Income Housing Tax Credits (LIHTC). The 
affordability category of ``50 percent or less of AMI'' previously 
referred to as ``especially low-income'' was redefined by HERA as 
``very low-income.'' To avoid confusion between these terms while at 
the same time maintain the affordability definitions for the purpose of 
identifying properties that may be eligible for LIHTC, FHFA has revised 
category 1 as follows: 1= >=20% of the units in the property are 
affordable at or below 50% of AMI, and <40% are affordable at or below 
60% AMI.
3. Single-Family Data Field 25 and Multifamily Data Field 24: Special 
Affordable, Seasoned Loan: Are Proceeds Recycled?
    This data field identifies categories of seasoned (originating at 
least 365 days prior to acquisition by the Enterprise) loans eligible 
for the special affordable housing goal. Effective for 2010 and beyond, 
HERA eliminated the special affordable housing goal and the provisions 
on giving full housing goals credit under the goal to Enterprise 
purchases or refinancings of existing, seasoned portfolios of loans in 
conjunction with the origination of additional goals-eligible loans. 
Accordingly, footnotes (7) and (5) to this data field in the single-
family and multifamily matrices, respectively, indicate that the data 
field is not applicable for 2010 and beyond. In light of the HERA 
changes, the obsolete regulatory cites in the data fields have also 
been removed.
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. In light of changes 
made by HERA, the obsolete regulatory cites in the data fields have 
been removed.
5. Single-Family Data Field 55 and Multifamily Data Field 43: 
Geographically Targeted Indicator
    This data field identifies whether a loan purchased by an 
Enterprise is located in an area defined to be ``underserved,'' for 
purposes of meeting the underserved areas housing goal. HERA eliminated 
the underserved areas housing goal effective for 2010 and beyond. 
Accordingly, footnotes (7) and (5) to this data field in the single-
family and multifamily matrices, respectively, indicate that the data 
field is not applicable for 2010 and beyond.

V. Applicability of National File C to 2010 and Subsequent Years

    FHFA has determined that the new National File C should apply to 
the Enterprises for 2010 and subsequent years. The Enterprises' HMDA 
rate spread submissions for 2008-2009 indicate that the HMDA rate 
spread field is of questionable value for those years because some 
lenders reported actual APR instead of HMDA rate spread.
    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

Revisions to Enterprise Public Use Database Incorporating High-Cost 
Single-Family Securitized Loan Data Fields and Technical Data Field 
Changes

    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 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;
    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, the Enterprises also separately report to FHFA certain 
single-family and multifamily mortgage data for safety and soundness 
and other regulatory purposes;
    Whereas, section 1127 of the Housing and Economic Recovery Act 
of 2008 (HERA), Pub. L. 110-289 (July 30, 2008), amended section 
1326 of the Safety and Soundness Act by requiring that, subject to 
privacy considerations as described in section 304(j) of the Home 
Mortgage Disclosure Act of 1975 (HMDA), the Director of FHFA shall, 
by regulation or order, make public certain data related to high-
cost single-family loans purchased and securitized by the 
Enterprises collected by the Director under section 1324(b)(6) of 
the Safety and Soundness Act, as amended by HERA, see 12 U.S.C. 
4544(b)(6), 4546(d);
    Whereas, to comply with sections 1324(b)(6) and 1326(d) of the 
Safety and Soundness Act, as amended, it is necessary to revise the 
single-family matrix of FHFA's Public Use Database (PUDB) by adding 
a new National File C incorporating the high-cost securitized loan 
data elements required thereunder;
    Whereas, high-cost single-family securitized loan data 
containing the characteristics set forth in section 1324(b)(6), as 
further specified in the new National File C, are available in FHFA 
and Enterprise databases for 2010;
    Whereas, technical revisions to certain data fields in the 
single-family and multifamily matrices of the PUDB are necessary in 
order to conform the data fields to HERA amendments to the Safety 
and Soundness Act that eliminated the previous low- and moderate-
income housing, special affordable housing, and underserved areas 
housing goals and established new housing goals and related 
definitions effective for 2010 and beyond, see 12 U.S.C. 4561 
through 4563;
    Whereas, additional technical revisions to certain data fields 
in the single-family and multifamily matrices of the PUDB are 
necessary in order to conform the data fields to existing PUDB 
reporting practices;

    Now, Therefore, it is hereby ordered as follows:

    1. The matrices in FHFA's PUDB are revised, as set forth in the 
attached Appendix which is incorporated herein by reference, to 
include: (a) A new single-family National File C containing new data 
fields applicable to 2010 and subsequent years for the high-cost 
securitized single-family loan data; and (b) revised data fields in 
the single-family and multifamily matrices applicable to 2010 and 
subsequent years to conform to changes made by HERA and existing 
PUDB reporting practices;
    2. The Enterprises shall provide FHFA with the mortgage data 
required to populate the data fields described in the revised 
single-family and multifamily matrices in the Appendix; and
    3. This Order modifies the FHFA Order of July 1, 2010 (75 FR 
41180, 41189 (July 15, 2010)) 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 21st day of September, 2011.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.

    Dated: September 21, 2011.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
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[FR Doc. 2011-24791 Filed 9-27-11; 8:45 am]
BILLING CODE 8070-01-C