§ 1281.12 - General counting requirements.

§ 1281.12 General counting requirements.

Cross Reference

Link to an amendment published at 85 FR 38051, June 25, 2020.

(a) Calculating the numerator and denominator for the housing goals. Performance under each of the housing goals shall be measured using a fraction that is converted into a percentage. Neither the numerator nor the denominator shall include Bank transactions or activities that are not AMA-approved mortgage purchases as defined by FHFA or that are specifically excluded as ineligible under § 1281.13(b).

(1) The numerator. The numerator of each fraction is the number of AMA-approved mortgage purchases of a Bank in a particular year that finance owner-occupied single-family properties that count toward achievement of a particular housing goal.

(2) The denominator. The denominator of each fraction is the total number of AMA-approved mortgage purchases of a Bank in a particular year that finance owner-occupied, single-family properties. A separate denominator shall be calculated for purchase money mortgages and for refinancing mortgages.

(b) Missing data or information for the housing goals.

(1) When a Bank lacks sufficient data or information to determine whether the purchase of a mortgage originated after 1992 counts toward achievement of a particular housing goal, that mortgage purchase shall be included in the denominator for that housing goal and shall not be included in the numerator for that housing goal.

(2) Mortgage purchases financing owner-occupied

General. Mortgage purchases financing single-family properties shall be evaluated based on the income of the mortgagors and the area median income at the time the mortgage was originated. To determine whether mortgages may be counted under a particular family income level (

i.

e.g., low- or very low-income), the income of the

mortgagors

mortgagor is compared to the median income for the area at the time

of

the mortgage

application

was originated, using the appropriate percentage factor provided under § 1281.1.

(

c) Credit toward multiple goals. A mortgage purchase by a Bank in a particular year shall count

b) No double-counting. A mortgage may be counted only once toward the achievement of

each

the prospective mortgage purchase housing goal

for which such purchase qualifies in that year. (d

, even if it satisfies multiple criteria for the prospective mortgage purchase housing goal.

(c) Application of median income. For purposes of determining an area's median income under § 1281.1, the area is:

(1) The metropolitan area, if the

property which is the subject of the

residence that secures the mortgage is in a metropolitan area; and

(2) In all other areas, the county in which the property is located, except that where the State

nonmetropolitan

non-metropolitan median income is higher than the county's median income, the area is the State

nonmetropolitan

non-metropolitan area.

(

e

d) Sampling not permitted. Performance under the housing goals for each year shall be based on a

complete

tabulation of each mortgage

purchases for

during that year; a sampling of such purchases is not acceptable.

(f) Newly available data. When a Bank uses data to determine whether a mortgage purchase counts toward achievement of any housing goal, and new data is released after the start of a calendar quarter, the Bank need not use the new data until the start of the following quarter.

[85 FR 38051, June 25, 2020]