PART 1281—FEDERAL HOME LOAN BANK HOUSING GOALS Authority: 12 U.S.C. 1430, 1430b, 1430c, 1431. Source: 75 FR 81105, Dec. 27, 2010, unless otherwise noted. Subpart A—General § 1281.1 Definitions. As used in this part: AMA mortgage AMA program AMA user Balloon mortgage Borrower income Community-based AMA user Community-based AMA user asset cap Conventional mortgage Day Designated disaster area Dwelling unit Families in low-income areas (1) Any family that resides in a census tract in which the median income does not exceed 80 percent of the area median income; (2) Any family with an income that does not exceed area median income that resides in a minority census tract; and (3) Any family with an income that does not exceed area median income that resides in a designated disaster area. Family FEMA Low-income Median income Metropolitan area Minority (1) American Indian or Alaskan Native—a person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment; (2) Asian—a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam; (3) Black or African American—a person having origins in any of the black racial groups of Africa; (4) Hispanic or Latino—a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race; and (5) Native Hawaiian or Other Pacific Islander—a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. Minority census tract Moderate-income Mortgage Mortgage Mortgage purchase Non-metropolitan area Purchase money mortgage Refinancing mortgage (1) A renewal of a single payment obligation with no change in the original terms; (2) A reduction in the annual percentage rate of the mortgage as computed under the Truth in Lending Act, with a corresponding change in the payment schedule; (3) An agreement involving a court proceeding; (4) A workout agreement, in which a change in the payment schedule or collateral requirements is agreed to as a result of the mortgagor's default or delinquency, unless the rate is increased or the new amount financed exceeds the unpaid balance plus earned finance charges and premiums for the continuation of insurance; (5) The renewal of optional insurance purchased by the mortgagor and added to an existing mortgage; or (6) A conversion of a balloon mortgage note on a single-family property to a fully amortizing mortgage note where the Bank already owns or has an interest in the balloon note at the time of the conversion. Residence Seasoned mortgage Secondary residence Single-family housing Very low-income [75 FR 81105, Dec. 27, 2010, as amended at 78 FR 2328, Jan. 11, 2013; 81 FR 76300, Nov. 2, 2016; 81 FR 91690, Dec. 19, 2016; 85 FR 38050, June 25, 2020] Subpart B—Housing Goals § 1281.10 General. Pursuant to the requirements of the Bank Act, as amended (12 U.S.C. 1430c), this subpart establishes: (a) A prospective mortgage purchase housing goal; (b) A small member participation housing goal; (c) Requirements for measuring performance under the housing goals; and (d) Procedures for monitoring and enforcing the housing goals. [75 FR 81105, Dec. 27, 2010, as amended at 85 FR 38051, June 25, 2020] § 1281.11 Bank housing goals. (a) Prospective mortgage purchase housing goal Target levels. (i) A target level of 20 percent; or (ii) An alternative target level proposed by the Bank and approved by FHFA under paragraph (c) of this section. (2) Cap on low-income areas loans counted toward goal. (b) Small member participation housing goal. (1) A target level of 50 percent; (2) A percentage that is three percentage points greater than the percentage from the preceding calendar year; or (3) An alternative target level proposed by the Bank and approved by FHFA under paragraph (c) of this section. (c) Alternative target levels Submission of Bank requests. (2) Content of Bank request. (i) Why the target level for the goal in paragraphs (a) and (b) of this section, as applicable, is infeasible; (ii) Why the Bank's proposed alternative target level is achievable; and (iii) How the Bank's proposed alternative target level will meaningfully further affordable housing mortgage lending in its district. (3) Frequency of Bank requests Three-year period. (ii) Exception for changes in AMA products or programs. (iii) Exception for special circumstances. (4) Public comment. [85 FR 38051, June 25, 2020] § 1281.12 General counting requirements. (a) General. e.g., (b) No double-counting. (c) Application of median income. (1) The metropolitan area, if 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 non-metropolitan median income is higher than the county's median income, the area is the State non-metropolitan area. (d) Sampling not permitted. [85 FR 38051, June 25, 2020] § 1281.13 Special counting requirements. (a) General. (b) Not counted. i.e., i.e., (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. (1) Cooperative housing and condominiums. (2) Seasoned mortgages. (3) Purchase of refinancing mortgages. (4) Non-conventional mortgages. (d) FHFA review of transactions. (e) Mortgage participation transactions. pro rata [75 FR 81105, Dec. 27, 2010, as amended at 85 FR 38052, June 25, 2020] § 1281.14 Determination of compliance with housing goals; notice of determination. (a) Determination of compliance with housing goals. (b) Failure to meet a housing goal. (1) Notice. (2) Response period In general. (ii) Extended period. (iii) Shortened period. (iv) Failure to respond. (3) Consideration of information and final determination— In general. (A) Whether the Bank has failed to meet the housing goal; and (B) Whether, taking into consideration market and economic conditions and the financial condition of the Bank, the achievement of the housing goal was feasible. (ii) Considerations. [75 FR 81105, Dec. 27, 2010, as amended at 85 FR 38052, June 25, 2020] § 1281.15 Housing plans. (a) Housing plan requirement. (b) Nature of plan. (1) Be feasible; (2) Be sufficiently specific to enable the Director to monitor compliance periodically; (3) Describe the specific actions that the Bank will take to achieve the housing goal for the next calendar year; (4) Address any additional matters relevant to the housing plan as required, in writing, by the Director; and (5) Address any alternative target levels for which the Bank has submitted a request under § 1281.11(c)(1). (c) Deadline for submission. (d) Review of housing plan. (1) Approval. (2) Notice of approval and disapproval. (e) Resubmission. (f) Enforcement of housing plan. [75 FR 81105, Dec. 27, 2010, as amended at 85 FR 38052, June 25, 2020; 90 FR 59965, Dec. 23, 2025] Subpart C—Reporting Requirements Source: 85 FR 38052, June 25, 2020, unless otherwise noted. § 1281.20 Reporting requirements. (a) General. (b) Reporting for prospective mortgage purchase housing goal. (c) Reporting for small member participation housing goal. (d) Other reporting.