[Federal Register Volume 75, Number 135 (Thursday, July 15, 2010)]
[Notices]
[Pages 41180-41201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17119]


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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.

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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, [email protected]; or Ian 
Keith, Program Analyst, 1625 Eye Street, NW., Washington, DC 20006, 
(202) 408-2949, [email protected]. For legal questions, contact Sharon 
Like, Associate General Counsel, OGC-Housing Mission and Goals, 1700 G 
Street, NW., Washington, DC 20552, (202) 414-8950, 
[email protected]. (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.
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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 year to which the data relates. 12 U.S.C. 4543(d).\3\
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    \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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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.
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    \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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    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

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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 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 http://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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \6\ http://www.census.gov/geo/www/cen_tract.html.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 
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 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 http://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 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 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 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.
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[FR Doc. 2010-17119 Filed 7-14-10; 8:45 am]
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