Risk-based capital: Test methodology and specifications; technical amendments Correction,

[Federal Register: July 12, 2006 (Volume 71, Number 133)]

[Corrections]

[Page 39399-39400]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr12jy06-133]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1750

RIN 2550-AA35

Risk-Based Capital Regulation Amendment

Correction

In proposed rule document 06-5330 beginning on page 36231 in the issue of Monday, June 26, 2006, make the following corrections:

  1. On pages 36235 and 36236, Table 3-4 is being reprinted in its entirety to read as follows:

    Table 3-4.--Additional Multifamily Loan Classification Variables

    Variable

    Description

    Range

    Multifamily Product Code

    Identifies the mortgage product Fixed Rate Fully Amortizing types for multifamily loans

    Adjustable Rate Fully Amortizing 5 Year Fixed Rate Balloon 7 Year Fixed Rate Balloon 10 Year Fixed Rate Balloon 15 Year Fixed Rate Balloon Balloon ARM Other

    New Book Flag

    ``New Book'' is applied to Fannie New Book Mae loans acquired beginning in Old Book 1988 and Freddie Mac loans acquired beginning in 1993, except for loans that were refinanced to avoid a default on a loan originated or acquired earlier

    Ratio Update Flag

    Indicates if the LTV and DCR were Yes updated at origination or at

    No Enterprise acquisition

    Current DCR

    Assigned classes for the Debt

    DCR=4.00

    Prepayment Penalty Flag

    Indicates if prepayment of the loan Yes is subject to active prepayment No penalties or yield maintenance provisions

    [[Page 39400]]

  2. On pages 36245 and 36246, Table 3-32 is being reprinted in its entirety to read as follows:

    Table 3-32--Loan Group Inputs for Mortgage Amortization Calculation

    Variable*

    Description

    Source

    Rate Type (Fixed or Adjustable)

    RBC Report

    Product Type (30/20/15-Year FRM, ARM,

    RBC Report Balloon, Government, etc.)

    UPBORIG

    Unpaid Principal Balance at Origination

    RBC Report (aggregate for Loan Group)

    UPB0

    Unpaid Principal Balance at start of Stress RBC Report Test (aggregate for Loan Group)

    MIR0

    Mortgage Interest Rate for the Mortgage

    RBC Report Payment prior to the start of the Stress Test, or Initial Mortgage Interest Rate for new loans (weighted average for Loan Group) (expressed as a decimal per annum)

    PMT0

    Amount of the Mortgage Payment (Principal and RBC Report Interest) prior to the start of the Stress Test, or first payment for new loans (aggregate for Loan Group)

    AT

    Original loan Amortizing Term in months

    RBC Report (weighted average for Loan Group)

    RM

    Remaining term to Maturity in months (i.e., RBC Report number of contractual payments due between the start of the Stress Test and the contractual maturity date of the loan) (weighted average for Loan Group)

    A0

    Age immediately prior to the start of the RBC Report Stress Test, in months (weighted average for Loan Group)

    Interest-only Flag

    RBC Report

    RIOP

    Remaining Interest-only period, in months RBC Report (weighted average for loan group)

    Additional Interest Rate Inputs

    GFR

    Guarantee Fee Rate (weighted average for Loan RBC Report Group) (decimal per annum)

    SFR

    Servicing Fee Rate (weighted average for Loan RBC Report Group) (decimal per annum)

    Additional Inputs for ARMs (weighted averages for Loan Group, except for Index)

    INDEXm

    Monthly values of the contractual Interest section 3.3, Interest Rates Rate Index

    LB

    Look-Back period, in months

    RBC Report

    MARGIN

    Loan Margin (over index), decimal per annum RBC Report

    RRP

    Rate Reset Period, in months

    RBC Report

    Rate Reset Limit (up and down), decimal per RBC Report annum

    Maximum Rate (life cap), decimal per annum RBC Report

    Minimum Rate (life floor), decimal per annum RBC Report

    NAC

    Negative Amortization Cap, decimal fraction RBC Report of UPBORIG

    Unlimited Payment Reset Period, in months RBC Report

    PRP

    Payment Reset Period, in months

    RBC Report

    Payment Reset Limit, as decimal fraction of RBC Report prior payment

    IRP

    Initial Rate Period, in months

    RBC Report

    *Variable name is given when used in an equation

    [FR Doc. C6-5330 Filed 7-11-06; 8:45 am]

    BILLING CODE 1505-01-D

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