Amortization Limits
| Published date | 21 December 2020 |
| Citation | 85 FR 82881 |
| Record Number | 2020-26619 |
| Section | Rules and Regulations |
| Court | Farm Credit Administration |
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
82881
Vol. 85, No. 245
Monday, December 21, 2020
1
See 12 U.S.C. 4561(a).
2
See 12 U.S.C. 4501(7).
FARM CREDIT ADMINISTRATION
12 CFR Part 614
RIN 3052–AC92
Amortization Limits
AGENCY
: Farm Credit Administration.
ACTION
: Notification of effective date.
SUMMARY
: The Farm Credit
Administration (FCA or we) is repealing
the regulatory requirement that
production credit associations (PCAs)
amortize their loans in 15 years or less,
while requiring Farm Credit System
(FCS or System) associations to address
amortization through their credit
underwriting standards and internal
controls. In accordance with the law,
the effective date of the rule is no earlier
than 30 days from the date of
publication in the Federal Register
during which either or both Houses of
Congress are in session.
DATES
: The regulation amending 12 CFR
part 614 published on September 28,
2020 (85 FR 60691) is effective on
November 19, 2020.
FOR FURTHER INFORMATION CONTACT
:
Technical information: Lori
Markowitz, Senior Policy Analyst,
Office of Regulatory Policy, (703) 883–
4487, TTY (703) 883–4056, markowitzl@
fca.gov.
Legal information: Richard A. Katz,
Senior Counsel, Office of General
Counsel, (703) 883–4020, TTY (703)
883–4056, katzr@fca.gov.
SUPPLEMENTARY INFORMATION
: On
September 28, 2020, FCA issued a final
rule to repeal regulatory provisions that
impose amortization limits on PCA
loans; and require associations that
amortize loans over a period of time that
is longer than the term to maturity to
address loan amortization in their credit
underwriting standards and internal
controls.
In accordance with 12 U.S.C.
2252(c)(1), the effective date of the rule
is no earlier than 30 days from the date
of publication in the Federal Register
during which either or both Houses of
Congress are in session. Based on the
records of the sessions of Congress, the
effective date of the regulations is
November 19, 2020.
Dated: November 30, 2020.
Dale Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2020–26619 Filed 12–18–20; 8:45 am]
BILLING CODE 6705–01–P
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Part 1282
RIN 2590–AB04
2021 Enterprise Housing Goals
AGENCY
: Federal Housing Finance
Agency.
ACTION
: Final rule.
SUMMARY
: The Federal Housing Finance
Agency (FHFA) is issuing a final rule on
the 2021 housing goals for Fannie Mae
and Freddie Mac (the Enterprises). The
Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 (the
Safety and Soundness Act) requires
FHFA to establish annual housing goals
for mortgages purchased by the
Enterprises. The housing goals include
separate categories for single-family and
multifamily mortgages on housing that
is affordable to low-income and very
low-income families, among other
categories. The final rule establishes
benchmark levels for each of the
housing goals for 2021.
DATES
: The final rule is effective on
February 19, 2021.
FOR FURTHER INFORMATION CONTACT
: Ted
Wartell, Associate Director, Office of
Housing & Community Investment,
Division of Housing Mission and Goals,
at (202) 649–3157, Ted.Wartell@
fhfa.gov; Padmasini Raman, Supervisory
Policy Analyst, Office of Housing &
Community Investment, Division of
Housing Mission and Goals, at (202)
649–3633, Padmasini.Raman@fhfa.gov;
or Kevin Sheehan, Associate General
Counsel, Office of General Counsel,
(202) 649–3086, Kevin.Sheehan@
fhfa.gov. These are not toll-free
numbers. The mailing address is:
Federal Housing Finance Agency, 400
Seventh Street SW, Washington, DC
20219. The telephone number for the
Telecommunications Device for the Deaf
is (800) 877–8339.
SUPPLEMENTARY INFORMATION
:
I. Background
Uncertainty over public health and
over the economic impacts of the
COVID–19 pandemic has caused
significant disruption in both the single-
family and multifamily housing markets
since March 2020. Due to the severe
nature of the COVID–19 pandemic and
associated economic uncertainty, FHFA
is establishing benchmark levels for the
Enterprise single-family and
multifamily housing goals for calendar
year 2021 only. FHFA expects to
conduct a new round of notice and
comment rulemaking in 2021 to
establish benchmark levels for 2022 and
beyond. FHFA expects that more data
will become available on the economic
impacts of the COVID–19 pandemic and
that the additional data will allow
FHFA to update the economic model
that has been a significant factor in
setting the single-family benchmark
levels. As in past housing goals
rulemakings, FHFA expects to publish a
paper describing the economic model as
part of the rulemaking process in 2021.
A. Statutory and Regulatory Background
for the Existing Housing Goals
The Safety and Soundness Act
requires FHFA to establish several
annual housing goals for both single-
family and multifamily mortgages
purchased by Fannie Mae and Freddie
Mac.
1
The annual housing goals are one
measure of the extent to which the
Enterprises are meeting their public
purposes, which include ‘‘an affirmative
obligation to facilitate the financing of
affordable housing for low- and
moderate-income families in a manner
consistent with their overall public
purposes, while maintaining a strong
financial condition and a reasonable
economic return.’’
2
FHFA has established annual housing
goals for Enterprise purchases of single-
family and multifamily mortgages
consistent with the requirements of the
Safety and Soundness Act. The
structure of the housing goals and the
rules for determining how mortgage
purchases are counted or not counted
are set forth in the housing goals
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