This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

65827 

Vol. 88, No. 185 

Tuesday, September 26, 2023 

1 12 U.S.C. 4513(a)(1)(B)(ii). 

2 12 U.S.C. 4501(7). 

3 12 U.S.C. 4565. 

4 12 U.S.C. 4565(a). The terms ‘‘very lowincome,’’ ‘‘low-income,’’ and ‘‘moderate-income’’ 

are defined in 12 U.S.C. 4502. 

5 12 CFR part 1282, subpart C. 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1228 

RIN 2590–AB30 

Exception to Restrictions on Private 

Transfer Fee Covenants for Loans 

Meeting Certain Duty To Serve Shared 

Equity Loan Program Requirements 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is proposing to amend 

its regulation that restricts its regulated 

entities—the Federal National Mortgage 

Association (Fannie Mae), the Federal 

Home Loan Mortgage Corporation 

(Freddie Mac) (collectively, the 

Enterprises), and the Federal Home 

Loan Banks (Banks)—from purchasing, 

investing in, accepting as collateral, or 

otherwise dealing in mortgages on 

properties encumbered by certain types 

of private transfer fee covenants 

(PTFCs), and in related securities, 

subject to certain exceptions (PTFC 

Regulation). The proposed rule would 

establish an additional exception to the 

restrictions for loans on properties with 

PTFCs, and related securities, if the 

loans meet certain shared equity loan 

program requirements for Resale 

Restriction Programs in FHFA’s Duty to 

Serve Underserved Markets Regulation 

(Duty to Serve Regulation). 

DATES: Written comments on the 

proposed rule must be received on or 

before November 27, 2023. 

ADDRESSES: You may submit your 

comments on the proposed rule, 

identified by regulatory information 

number (RIN) 2590–AB30, by any one of 

the following methods: 

• Agency Website: www.fhfa.gov/ 

open-for-comment-or-input. 

• Federal eRulemaking Portal: 

https://www.regulations.gov. Follow the 

instructions for submitting comments. If 

you submit your comment to the 

Federal eRulemaking Portal, please also 

send it by email to FHFA at 

RegComments@fhfa.gov to ensure 

timely receipt by FHFA. Include the 

following information in the subject line 

of your submission: Comments/RIN 

2590–AB30. 

• Hand Delivered/Courier: The hand 

delivery address is: Clinton Jones, 

General Counsel, Attention: Comments/ 

RIN 2590–AB30, Federal Housing 

Finance Agency, 400 Seventh Street 

SW, Washington, DC 20219. Deliver the 

package at the Seventh Street SW 

entrance Guard Desk, First Floor, on 

business days between 9 a.m. and 5 p.m. 

• U.S. Mail, United Parcel Service, 

Federal Express, or Other Mail Service: 

The mailing address for comments is: 

Clinton Jones, General Counsel, 

Attention: Comments/RIN 2590–AB30, 

Federal Housing Finance Agency, 400 

Seventh Street SW, Washington, DC 

20219. Please note that all mail sent to 

FHFA via U.S. Mail is routed through a 

national irradiation facility, a process 

that may delay delivery by 

approximately two weeks. For time 

sensitive correspondence, please plan 

accordingly. 

FOR FURTHER INFORMATION CONTACT: Ted 

Wartell, Associate Director, Office of 

Housing and Community Investment 

(OHCI), 202–649–3157, ted.wartell@

fhfa.gov; or Sara L. Todd, Assistant 

General Counsel, Office of General 

Counsel (OGC), 202–649–3527, 

sara.todd@fhfa.gov; Federal Housing 

Finance Agency, 400 Seventh Street 

SW, Washington, DC 20219. These are 

not toll-free numbers. The mailing 

address for each contact is: Federal 

Housing Finance Agency, Fourth Floor, 

400 Seventh Street SW, Washington, DC 

20219. For TTY/TRS users with 

disabilities, dial 711 and ask to be 

connected to any of the contact numbers 

above. 

SUPPLEMENTARY INFORMATION: 

I. Public Comments and Access 

FHFA invites comments on all aspects 

of the proposed rule, and will take all 

comments into consideration before 

issuing a final rule. Commenters do not 

need to answer each of the specific 

questions asked below. Copies of all 

comments received will be posted on 

the FHFA website at http://

www.fhfa.gov, and will include any 

personal information you provide, such 

as your name, address, email address, 

and telephone number. In addition, 

copies of all comments received will be 

available for examination by the public 

through the electronic rulemaking 

docket for this proposed rule, also 

located on the FHFA website. 

II. Background 

A. Statutory and Regulatory 

Background: Enterprises 

The Federal Housing Enterprises 

Financial Safety and Soundness Act of 

1992, as amended (Safety and 

Soundness Act), provides that the 

Director of FHFA has a duty to ensure 

that the operations and activities of the 

Enterprises foster liquid, efficient, 

competitive, and resilient national 

housing finance markets.1 To achieve 

these goals, the Enterprises purchase 

residential mortgages that fall within the 

conforming loan limits established 

pursuant to 12 U.S.C. 1717 and 12 

U.S.C. 1454, and issue guaranteed 

mortgage-backed securities backed by 

those loans. 

In addition, the Safety and Soundness 

Act provides generally that the 

Enterprises ‘‘have an affirmative 

obligation to facilitate the financing of 

affordable housing for low- and 

moderate-income families.’’ 2 Section 

1129 of the Housing and Economic 

Recovery Act of 2008 (HERA) amended 

section 1335 of the Safety and 

Soundness Act to establish a duty for 

the Enterprises to serve three specified 

underserved markets (Duty to Serve) in 

order to increase the liquidity of 

mortgage investments and improve the 

distribution of investment capital 

available for mortgage financing for 

certain categories of borrowers in those 

markets.3 Specifically, the Enterprises 

are required to provide leadership in 

developing loan products and flexible 

underwriting guidelines to facilitate a 

secondary market for mortgages on 

housing for very low-, low-, and 

moderate-income families for the 

manufactured housing, affordable 

housing preservation, and rural housing 

markets.4 FHFA’s Duty to Serve 

Regulation,5 which implements these 


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6See 12 U.S.C. 1421 et seq. 

7See 12 U.S.C. 1426(a)(4), 1430(a), 1430b. 

8See 12 U.S.C. 1430(a)(3), 1430(b); 12 CFR 

1266.7, 1266.17, part 1269. 

9See 12 CFR part 1268. 

10See 12 CFR 1267.3(a)(4)(iv), (v). 

11 12 CFR 1228.2. 

12 12 CFR 1228.1. 

13 12 CFR 1228.1. The definition excludes fees 

imposed by or payable to the Federal, State, or local 

government, and fees that defray actual costs of the 

transfer of the property, neither of which would be 

modified by the proposed rule. 

14See 77 FR 15566, 15567 (Mar. 16, 2012). 

15 12 CFR 1228.1. 

16 Id. 

17 Id. 

18 Id. 

19 12 CFR part 1282, subpart C; 81 FR 96242 (Dec. 

29, 2016). 

20 12 CFR 1282.32(a), (b). 

21See 12 CFR 1282.33(c) for eligible activities in 

the manufactured housing market; 12 CFR 

1282.34(c), (d) for eligible activities in the 

affordable housing preservation market; and 12 CFR 

1282.35(c) for eligible activities in the rural housing 

market. 

22 12 CFR 1282.32(d)(2). 

23 12 CFR 1282.34(d)(4)(i)(A). 

Duty to Serve statutory requirements, is 

discussed further below. 

B. Statutory and Regulatory 

Background: Federal Home Loan Banks 

The eleven Banks are wholesale 

financial institutions organized under 

the Federal Home Loan Bank Act to 

support housing finance and further 

affordable housing and community 

development.6 The Banks are 

cooperatives and carry out their mission 

primarily by providing products and 

services to their member institutions. 

Bank members and eligible housing 

associates (nonmember mortgagee 

borrowers such as state housing finance 

agencies) may obtain access to secured 

loans, known as advances.7 These must 

be fully secured by eligible collateral at 

the time of issuance or renewal, which 

may include, among other forms of 

collateral, residential mortgages and 

mortgage-backed securities.8 In 

addition, the Banks issue standby letters 

of credit on behalf of members and 

housing associates, which may be 

secured by residential mortgages and 

mortgage-backed securities. 

Most Banks also offer Acquired 

Member Assets (AMA) programs, under 

which they acquire eligible mortgages 

from participating members and 

housing associates, subject to 

parameters set forth in FHFA’s AMA 

regulation.9 The Banks are also 

authorized to invest in mortgage-backed 

securities and other mortgage-related 

investments meeting applicable 

requirements.10 Finally, the Banks may 

serve as pass-through entities for 

mortgage loans acquired by another 

purchaser. 

III. PTFC Regulation 

The current PTFC Regulation 

prohibits the Enterprises and Banks 

from purchasing, investing in, or 

otherwise dealing in any mortgages 

encumbered by PTFCs or related 

securities, and prohibits the Banks from 

accepting such mortgages or securities 

as collateral for advances, unless such 

PTFCs are ‘‘excepted transfer fee 

covenants.’’ 11 Under the PTFC 

Regulation, ‘‘PTFCs’’ mean obligations 

that purport to ‘‘run with the land’’ in 

the records of title to real property or to 

bind current owners of, and successors 

in title to, such real property, and that 

obligate a transferee or transferor to pay 

a private transfer fee upon transfer of 

the property.12 A ‘‘private transfer fee’’ 

is defined in the PTFC Regulation as a 

transfer fee, including a charge or 

payment, imposed by a covenant, and 

required to be paid in connection with 

or as a result of a transfer of title to real 

estate, and payable on a continuing 

basis each time a property is transferred 

(except for transfers specifically 

excepted) for a period of time or 

indefinitely.13

In adopting the PTFC Regulation, 

FHFA was concerned that private 

transfer fees would: (1) be used to fund 

purely private continuous streams of 

income for select market participants, 

either directly or through securitized 

investment vehicles; (2) not benefit 

homeowners or the properties involved; 

and (3) interfere with accurate 

determination of property values. 

Therefore, FHFA concluded that 

mortgages on properties with PTFCs 

might impair the safety and soundness 

of the Enterprises and the Banks that 

purchase, invest in, or otherwise deal 

in, or in the case of the Banks, that 

accept as collateral, such mortgages.14

The prohibition in the PTFC 

Regulation does not apply where the 

PTFC is an ‘‘excepted transfer fee 

covenant,’’ which is defined as a 

covenant that requires payment to a 

‘‘covered association’’ and that limits 

the use of such payment to purposes 

that provide a ‘‘direct benefit’’ to the 

real property.15 A ‘‘covered association’’ 

is defined as ‘‘a nonprofit mandatory 

membership organization comprising 

owners of homes, condominiums, 

cooperatives, manufactured homes, or 

any interest in real property, created 

pursuant to a declaration, covenant or 

other applicable law; or an organization 

described in section 501(c)(3) or section 

501(c)(4) of the Internal Revenue 

Code.’’ 16 The PTFC Regulation defines 

a ‘‘direct benefit’’ as meaning that the 

proceeds of a PTFC ‘‘are used 

exclusively to support maintenance and 

improvements to encumbered 

properties, and acquisition, 

improvement, administration, and 

maintenance of property owned by the 

covered association of which the owners 

of the burdened property are members 

and used primarily for their benefit.’’ 17

This may include ‘‘cultural, 

educational, charitable, recreational, 

environmental, conservation, or other 

similar activities that (1) are conducted 

in or protect the burdened community 

or adjacent or contiguous property, or 

(2) are conducted on other property that 

is used primarily by residents of the 

burdened community.’’ 18

IV. Interaction Between the PTFC 

Regulation and the Enterprise Duty To 

Serve Regulation and Activities 

Approximately four years after the 

adoption of the PTFC Regulation, FHFA 

adopted the Duty to Serve Regulation, 

which applies only to the Enterprises.19

Under the Duty to Serve Regulation, 

each Enterprise is required to prepare an 

Underserved Markets Plan (Plan), which 

is subject to Non-Objection by FHFA, 

and which describes the specific 

activities and objectives the Enterprise 

will undertake over a three-year period 

to fulfill its Duty to Serve in each 

underserved market.20 The regulation 

identifies specific types of activities that 

are eligible to receive Duty to Serve 

credit and that an Enterprise may 

include in its Plan under each 

underserved market.21 An Enterprise 

may also include additional activities in 

its Plan, subject to FHFA determination 

of whether they are eligible to receive 

Duty to Serve credit.22

Under the Duty to Serve Regulation, 

one of the activities eligible for Duty to 

Serve credit under the affordable 

housing preservation market is 

Enterprise support for shared equity 

programs for affordable homeownership 

preservation in the form of resale 

restriction programs administered by 

community land trusts, other nonprofit 

organizations, or state or local 

governments or instrumentalities 

(collectively, Resale Restriction 

Programs).23 The Duty to Serve 

Regulation further specifies the 

following criteria for an eligible Resale 

Restriction Program: 

(a) Provides homeownership 

opportunities to very low-, low-, or 

moderate-income households (100 

percent or less of area median income 

(AMI)); 

(b) Utilizes a ground lease, deed 

restriction, subordinate loan, or similar 

legal mechanism that includes 

provisions stating that the program will 


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24 12 CFR 1282.34(d)(4)(ii). 

25 80 FR 79181, 79203 (Dec. 18, 2015). 

26See 12 CFR 1228.1. 27 12 CFR 1282.34(d)(4)(i)(A), (d)(4)(ii). 

keep the home affordable for subsequent 

very low-, low-, or moderate-income 

families, the affordability term is at least 

30 years after recordation, a resale 

formula applies that limits the 

homeowner’s proceeds upon resale, and 

the program administrator or its 

assignee has a preemptive option to 

purchase the homeownership unit from 

the homeowner at resale; and 

(c) Supports homebuyers and 

homeowners to promote sustainable 

homeownership, including reviewing 

and pre-approving refinances and home 

equity lines of credit.24

The preamble to the 2015 proposed 

Duty to Serve rule noted that many 

shared equity loan programs allow the 

sponsors to charge modest fees that 

cover the cost of operating the 

program.25 However, the preamble to 

the final Duty to Serve rule did not 

reiterate this discussion of fees and did 

not include a reference to fees in the 

regulatory text. The final Duty to Serve 

rule also did not refer to or amend the 

PTFC Regulation specifically to provide 

an exception to the restriction on PTFCs 

for loans that meet Resale Restriction 

Program requirements in the Duty to 

Serve Regulation. 

Between 2018 (the first year of Duty 

to Serve program implementation) and 

2022, the Enterprises, collectively, 

purchased 595 shared equity loans for 

Duty to Serve credit. Both Enterprises’ 

2022–2024 Duty to Serve Plans include 

plans to purchase shared equity loans 

under Resale Restriction Programs in 

2023 and 2024. 

The loans purchased by the 

Enterprises under many of the Resale 

Restriction Programs are on properties 

encumbered by PTFCs that fall within 

the PTFC Regulation’s prohibition 

because they bind current owners and 

successors to pay a fee to the program 

administrator (often a community land 

trust) on a continuing basis each time 

the property is transferred. The loans do 

not meet the definition of an ‘‘excepted 

transfer fee covenant’’ in the PTFC 

Regulation because they are used by the 

program administrator to pay for its 

operating costs, including costs of 

enforcing the long-term affordability 

requirements, but they are not limited to 

costs and activities that are specific to 

the ‘‘burdened community’’ in which 

the subject property is located, nor are 

they otherwise required to be used for 

the purpose of providing a ‘‘direct 

benefit’’ to the property (as these quoted 

terms are defined in the PTFC 

Regulation).26

During the Enterprises’ efforts to 

implement the shared equity loan 

objectives in their Duty to Serve Plans, 

the Enterprises reviewed model 

organizational documents that were 

proposed to be used as templates by 

Resale Restriction Programs. In 

preparing to establish approved 

templates, the Enterprises determined 

that, while Resale Restriction Programs 

using the templates would meet the 

criteria for Resale Restriction Programs 

in the Duty to Serve Regulation (except 

for the 100 percent of AMI limit), the 

programs’ possible inclusion of private 

transfer fee payment requirements could 

cause any loans issued under the terms 

of the model organizational documents 

to be ineligible for purchase by the 

Enterprises pursuant to the PTFC 

Regulation. 

V. Regulatory Waiver for the 

Enterprises; Proposed § 1228.1 

In response to the Enterprises’ 

identification of PTFCs in shared equity 

loans under Resale Restriction Programs 

that otherwise could be purchased and 

qualify for Duty to Serve credit, FHFA 

reviewed these types of loans and 

determined that the private transfer fees 

in these programs are not the types of 

fees that prompted the concern 

underlying the PTFC Regulation. Unlike 

fees paid to the select market 

participants that concerned FHFA when 

the PTFC Regulation was adopted, the 

fees in Resale Restriction Programs 

reimburse the program administrators, 

which are typically community land 

trusts, nonprofits, or local governments, 

for their ongoing operating expenses 

related to the purchase and sale of 

affordable homes under the program. 

They are not used as a method to 

provide a continuous income stream to 

the program administrators with no 

continuing affordable housing-related 

services provided. For example, fees in 

Resale Restriction Programs may be 

used to pay for: maintaining a list of, 

and qualifying, prospective programeligible homebuyers; providing seller 

representation and outreach to 

prospective buyers; ensuring that 

repairs are incorporated into the sale 

transaction; providing potential 

homebuyers with homeownership 

counseling or similar education; 

exercising the program administrator’s 

option to purchase the home if the 

homeowner defaults on the first lien or 

the affordability restriction; enforcing 

the long-term affordability requirements 

(such as calculating the maximum resale 

price according to the resale formula); 

and executing legal documents with 

subsequent homebuyers. 

Accordingly, FHFA issued a 

temporary prospective waiver of the 

private transfer fee restrictions in 

§ 1228.2 of the PTFC Regulation for 

Enterprise purchases or securitizations 

of shared equity loans on properties 

with PTFCs that meet the Duty to Serve 

shared equity loan program criteria for 

Resale Restriction Programs in the Duty 

to Serve Regulation other than the Duty 

to Serve 100 percent of AMI limit,27

through the remaining term of the 

Enterprises’ 2022–2024 Duty to Serve 

Plans, i.e., through December 31, 2024. 

The waiver did not include an income 

limit, based on input from the 

Enterprises and other practitioners 

familiar with shared equity programs 

who indicated that these programs 

typically set income limits up to 140 

percent of AMI (which is above the Duty 

to Serve 100 percent of AMI limit), 

especially in communities where 

housing costs are high relative to 

incomes. Limiting eligibility for the 

waiver to loans that meet the Duty to 

Serve 100 percent of AMI limit would 

require lenders and shared equity 

program administrators to use a 

differentiated approach with borrowers 

above and below this income threshold. 

Further, it would require lenders to 

review each loan to ensure eligibility for 

purchase by the Enterprises and the 

Banks. This would undermine the 

objective of standardizing the shared 

equity homeownership market and 

increasing the number of Enterprise 

shared equity loan purchases under the 

Duty to Serve program. 

The waiver also included a 

retrospective component that waived 

the restrictions in the PTFC Regulation 

for shared equity loans on properties 

with private transfer fees purchased or 

securitized by the Enterprises with note 

dates prior to July 1, 2023, regardless of 

whether the loans met the Duty to Serve 

shared equity loan program criteria for 

Resale Restriction Program loans. 

Finally, the waiver provided notice of 

FHFA’s intention to promptly engage in 

notice-and-comment rulemaking to 

propose amending the PTFC Regulation 

to codify the waiver provisions. This 

proposed rule implements that intent. 

Specifically, the proposed rule would 

amend the definition of ‘‘excepted 

transfer fee covenant’’ in § 1228.1 of the 

PTFC Regulation to add as an exception 

a PTFC that encumbers a property for 

which a shared equity loan meets the 

requirements of a Duty to Serve Resale 

Restriction Program 

(§ 1282.34(d)(4)(i)(A) and (d)(4)(ii) of 

this chapter) other than the 100 percent 

of AMI limit. 


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28 12 CFR 1228.2. 

VI. Interaction Between the PTFC 

Regulation and the Banks’ Activities; 

Proposed § 1228.1 

The current PTFC Regulation also 

prohibits the Banks from purchasing, 

investing in, or otherwise dealing in 

mortgages on properties encumbered by 

PTFCs, and related securities, and 

prohibits the Banks from accepting such 

mortgages or securities as collateral for 

advances, subject to the exceptions in 

the regulation.28 The Banks have 

indicated that, to their knowledge, they 

have not purchased, or accepted as 

collateral, shared equity loans. The 

same considerations discussed above for 

the Enterprises (regarding differences in 

the uses of fees payable at resale to 

administrators of Resale Restriction 

Programs and the fees that FHFA was 

concerned about when the PTFC 

Regulation was adopted) also apply to 

the Banks. However, because the waiver 

for the Enterprises derived from their 

activities under the Duty to Serve 

regulation (which does not apply to the 

Banks), the waiver did not address 

activities of the Banks with respect to 

shared equity loans. Because the Banks 

might decide in the future to purchase, 

invest in, or otherwise deal in shared 

equity loans or related securities under 

Resale Restriction Programs, or accept 

them as collateral, to facilitate increased 

liquidity for affordable homeownership, 

FHFA believes the exception provided 

in the proposed rule for the Enterprises 

should also apply for the Banks. 

Accordingly, the definition of 

‘‘excepted transfer fee covenant’’ in 

§ 1228.1 of the PTFC Regulation would 

continue to apply to both the 

Enterprises and the Banks, as amended 

by the proposed rule to add as an 

exception a PTFC that encumbers a 

property for which a shared equity loan 

meets the requirements of a Duty to 

Serve Resale Restriction Program 

(§ 1282.34(d)(4)(i)(A) and (d)(4)(ii) of 

that chapter) other than the 100 percent 

of AMI limit. 

VII. Limitation on Applicability; 

Proposed § 1228.3 

The proposed rule would remove the 

prospective application and effective 

date in current § 1228.3 of the PTFC 

Regulation. Current § 1228.3 includes a 

grandfather provision for mortgages on 

certain properties encumbered by 

PTFCs if those PTFCs were created 

pursuant to an agreement entered into 

before the effective date of the PTFC 

regulation. The regulated entities have 

been operating under the terms of the 

current regulation since July 16, 2012, 

and the Enterprises subsequently have 

been operating under the terms of the 

regulatory waiver since July 1, 2023. If 

this proposed PTFC rule is adopted as 

a final rule, the prospective application 

date (i.e., the effective date) of the final 

rule would be 60 days after the date of 

its publication in the Federal Register. 

This date will precede December 31, 

2024, which is the conclusion of the 

2022–2024 Duty to Serve Plan cycle and 

the date on which the temporary 

prospective component of the waiver 

will expire. 

Proposed § 1228.3 would include the 

retrospective component of the waiver 

by allowing the Enterprises to retain in 

their portfolios any of the 595 shared 

equity loans on properties with private 

transfer fees that were purchased or 

securitized by the Enterprises with note 

dates prior to the effective date of the 

waiver (July 1, 2023), regardless of 

whether the loans met the Duty to Serve 

shared equity loan program criteria for 

resale restriction programs in 

§ 1282.34(d)(4)(i)(A) and (d)(4)(ii) of this 

chapter. 

VIII. Requests for Comments 

FHFA specifically requests comments 

on the following questions (please 

identify the question answered by the 

number assigned below): 

1. Should the proposed rule apply to 

the Banks in addition to the Enterprises? 

Do differences between the Banks and 

the Enterprises warrant additional or 

other revisions to the proposed rule as 

it relates to the Banks? 

2. Should all of the Duty to Serve 

Resale Restriction Program criteria, 

including the 100 percent of AMI limit, 

apply to the determination of whether a 

mortgage loan that is subject to PTFCs, 

or a related security, is eligible for 

purchase, investment, otherwise dealing 

in, or acceptance as collateral by the 

Banks and Enterprises? If not, which of 

those specific criteria should apply? 

3. Should criteria other than the Duty 

to Serve Resale Restriction Program 

criteria, such as an income limit 

different from 100 percent of AMI, 

apply to the determination of eligibility? 

4. Should criteria in addition to the 

Duty to Serve Resale Restriction 

Program criteria apply to the 

determination of eligibility? 

IX. Paperwork Reduction Act 

The proposed rule does not contain 

any information collection requirement. 

Thus, it would not require approval of 

the Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act (44 U.S.C. 3501 et seq.). Therefore, 

FHFA has not submitted any 

information to OMB for review. 

X. Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) requires that a 

regulation that has a significant 

economic impact on a substantial 

number of small entities, small 

businesses, or small organizations must 

include an initial regulatory flexibility 

analysis describing the regulation’s 

impact on small entities. FHFA need not 

undertake such an analysis if the agency 

has certified that the regulation will not 

have a significant economic impact on 

a substantial number of small entities. 5 

U.S.C. 605(b). FHFA has considered the 

impact of the proposed rule under the 

Regulatory Flexibility Act and FHFA 

certifies that the proposed rule, if 

adopted as a final rule, will not have a 

significant economic impact on a 

substantial number of small entities 

because the proposed rule is applicable 

only to the regulated entities, which are 

not small entities for purposes of the 

Regulatory Flexibility Act. 

XI. Consideration of Differences 

Between the Banks and the Enterprises 

When promulgating regulations 

relating to the Banks, section 1313(f) of 

the Safety and Soundness Act requires 

the Director of FHFA to consider the 

differences between the Banks and the 

Enterprises with respect to the Banks’ 

cooperative ownership structure; 

mission of providing liquidity to 

members and housing associates; 

affordable housing and community 

development mission; capital structure; 

and joint and several liability. In 

preparing this proposed rule, FHFA 

considered the differences between the 

Banks and the Enterprises as they relate 

to the above factors, and determined 

that the proposed rule is appropriate as 

it would have no impact on four of the 

five factors and could have a modest, 

positive impact on the fifth factor—the 

mission of providing liquidity to 

members and housing associates. FHFA 

requests comments regarding whether 

differences related to those factors 

should result in any additional or other 

revisions to the proposed rule. 

List of Subjects in 12 CFR Part 1228 

Banks, Banking, Condominiums, 

Cooperatives, Federal Home Loan 

Banks, Government-sponsored 

enterprises, Investments, Loan 

programs—housing and community 

development, Low and moderate 

income housing, Mortgages, Nonprofit 

organizations, Real property acquisition, 

Securities. 

For the reasons stated in the 

Preamble, and under the authority of 12 

U.S.C. 4526, FHFA proposes to amend 


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part 1228 of chapter XII of title 12 of the 

Code of Federal Regulations as follows: 

PART 1228—RESTRICTIONS ON THE 

ACQUISITION OF, OR TAKING 

SECURITY INTERESTS IN, 

MORTGAGES ON PROPERTIES 

ENCUMBERED BY CERTAIN PRIVATE 

TRANSFER FEE COVENANTS AND 

RELATED SECURITIES 

■ 1. The authority citation for part 1228 

is revised to read as follows: 

Authority: 12 U.S.C. 4511, 4513, 4526, 

4565, 4616, 4617, 4631. 

■ 2. Amend § 1228.1 by revising the 

definition of ‘‘Excepted transfer fee 

covenant’’ to read as follows: 

§ 1228.1 Definitions. 

* * * * * 

Excepted transfer fee covenant means 

a private transfer fee covenant that: 

(1) Requires payment of a private 

transfer fee to a covered association and 

limits the use of such transfer fees 

exclusively to purposes which provide 

a direct benefit to the real property 

encumbered by the private transfer fee 

covenants; or 

(2) Requires payment of a private 

transfer fee under a program meeting the 

Duty to Serve shared equity loan 

program criteria for resale restriction 

programs in § 1282.34(d)(4)(i)(A) and 

(d)(4)(ii) of this chapter other than the 

Duty to Serve 100 percent of area 

median income limit. 

* * * * * 

■ 3. Revise § 1228.3 to read as follows: 

§ 1228.3 Limitation on applicability. 

This part is not applicable to shared 

equity loans, or related securities, that 

were purchased or securitized by the 

Enterprises with note dates prior to July 

1, 2023, regardless of whether the loans 

met the Duty to Serve shared equity 

loan program criteria for resale 

restriction programs in 

§ 1282.34(d)(4)(i)(A) and (d)(4)(ii) of this 

chapter. 

Sandra L. Thompson, 

Director, Federal Housing Finance Agency. 

[FR Doc. 2023–20818 Filed 9–25–23; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–1887; Project 

Identifier MCAI–2023–00543–T] 

RIN 2120–AA64 

Airworthiness Directives; Airbus SAS 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede Airworthiness Directive (AD) 

2020–24–12, which applies to certain 

Airbus SAS Model A350–941 airplanes. 

AD 2020–24–12 requires replacing 

certain center wing box (CWB) fasteners 

with fasteners having improved friction 

efficiency. Since the FAA issued AD 

2020–24–12, additional work was 

introduced to ensure the correct 

application of the fuel vapor barrier 

structure paint on the outside of the 

CWB. This proposed AD would 

continue to require the actions in AD 

2020–24–12 and would require the 

additional work, as specified in a 

European Union Aviation Safety Agency 

(EASA) AD, which is proposed for 

incorporation by reference (IBR). The 

FAA is proposing this AD to address the 

unsafe condition on these products. 

DATES: The FAA must receive comments 

on this proposed AD by November 13, 

2023. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

regulations.gov. Follow the instructions 

for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2023–1887; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this NPRM, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The street address for 

Docket Operations is listed above. 

Material Incorporated by Reference: 

• For the EASA AD identified in this 

NPRM, you may contact EASA, KonradAdenauer-Ufer 3, 50668 Cologne, 

Germany; telephone +49 221 8999 000; 

email ADs@easa.europa.eu; website 

easa.europa.eu. You may find this 

material on the EASA website at 

ad.easa.europa.eu. It is also available at 

regulations.gov under Docket No. FAA– 

2023–1887. 

• You may view this service 

information at the FAA, Airworthiness 

Products Section, Operational Safety 

Branch, 2200 South 216th St., Des 

Moines, WA. For information on the 

availability of this material at the FAA, 

call 206–231–3195. 

FOR FURTHER INFORMATION CONTACT: Dat 

Le, Aviation Safety Engineer, FAA, 1600 

Stewart Avenue, Suite 410, Westbury, 

NY 11590; telephone (516) 228–7317; 

email dat.v.le@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

The FAA invites you to send any 

written relevant data, views, or 

arguments about this proposal. Send 

your comments to an address listed 

under ADDRESSES. Include ‘‘Docket No. 

FAA–2023–1887; Project Identifier 

MCAI–2023–00543–T’’ at the beginning 

of your comments. The most helpful 

comments reference a specific portion of 

the proposal, explain the reason for any 

recommended change, and include 

supporting data. The FAA will consider 

all comments received by the closing 

date and may amend this proposal 

because of those comments. 

Except for Confidential Business 

Information (CBI) as described in the 

following paragraph, and other 

information as described in 14 CFR 

11.35, the FAA will post all comments 

received, without change, to 

regulations.gov, including any personal 

information you provide. The agency 

will also post a report summarizing each 

substantive verbal contact received 

about this NPRM. 

Confidential Business Information 

CBI is commercial or financial 

information that is both customarily and 

actually treated as private by its owner. 

Under the Freedom of Information Act 

(FOIA) (5 U.S.C. 552), CBI is exempt 

from public disclosure. If your 

comments responsive to this NPRM 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to this NPRM, it is important 

that you clearly designate the submitted 

comments as CBI. Please mark each 


lotter on DSK11XQN23PROD with PROPOSALS1