§ 1281.13. Special counting requirements.
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/us/cfr/t12/s§ 1281.13·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General. FHFA shall determine whether a Bank shall receive full, partial, or no credit toward achievement of any of the housing goals for a transaction that otherwise qualifies under this part.
(b)Not counted. The following transactions or activities shall not be counted for purposes of the housing goals, meaning that in calculating the applicable percentage target level, they shall be excluded from both the numerator (i.e., AMA mortgages acquired during the calendar year that are for very low-income families, low-income families, or families in low-income areas) and the denominator (i.e., total AMA mortgages acquired during the calendar year), even if the transaction or activity would otherwise be counted under paragraph
(c)of this section:
(1)Purchases of participation interests in AMA mortgages from another Bank, except as provided in paragraph
(e)of this section;
(2)Commitments to buy mortgages at a later date or time;
(3)Options to acquire mortgages;
(4)Rights of first refusal to acquire mortgages;
(5)Any interests in mortgages that the Director determines, in writing, shall not be treated as interests in mortgages;
(6)Mortgage purchases to the extent they finance any dwelling units that are secondary residences;
(7)Single-family refinancing mortgages that result from conversion of balloon notes to fully amortizing notes, if a Bank already owns, or has an interest in, the balloon note at the time conversion occurs;
(8)Purchases of subordinate lien mortgages;
(9)Purchases of mortgages that were previously counted by a Bank under any current or previous housing goal within the five years immediately preceding the current performance year;
(10)Purchases of mortgages where the property has not been approved for occupancy; and
(11)Any combination of factors in paragraphs (b)(1) through (b)(10) of this section.
(c)Other special rules. Subject to FHFA's determination of whether a Bank shall receive full, partial, or no credit for a transaction toward achievement of any of the housing goals as provided in paragraph
(a)of this section, the transactions and activities identified in this paragraph
(c)shall be treated as mortgage purchases as described. A transaction or activity that is covered by more than one paragraph below must satisfy the requirements of each such paragraph. The mortgages from each such transaction or activity shall be included in the denominator in calculating a Bank's performance under the housing goals, and shall be included in the numerator, as appropriate.
(1)Cooperative housing and condominiums. The purchase by a Bank of a mortgage on a cooperative housing unit (“a share loan”) or a mortgage on a condominium unit shall be treated as a mortgage purchase for purposes of the housing goals.
(2)Seasoned mortgages. The purchase of a seasoned mortgage by a Bank shall be treated as a mortgage purchase for purposes of the housing goals, except where the Bank has already counted the mortgage under any current or previous housing goal within the five years immediately preceding the current performance year.
(3)Purchase of refinancing mortgages. The purchase of a refinancing mortgage by a Bank shall be treated as a mortgage purchase for purposes of the housing goals only if the refinancing is an arms-length transaction that is borrower-driven.
(4)Non-conventional mortgages. The purchase of a non-conventional single-family mortgage shall be treated as a mortgage purchase for purposes of the housing goals only if the mortgage was acquired from a community-based AMA user.
(d)FHFA review of transactions. FHFA may determine whether and how any transaction or class of transactions shall be counted for purposes of the housing goals. FHFA will notify each Bank in writing of any determination regarding the treatment of any transaction or class of transactions under the housing goals.
(e)Mortgage participation transactions. Where two or more Banks acquire a participation interest in the same mortgage simultaneously, the mortgage will be counted on a pro rata basis for the prospective mortgage purchase housing goal for each Bank with a participation interest. [75 FR 81105, Dec. 27, 2010, as amended at 85 FR 38052, June 25, 2020]