FHFA Publishes Final Rule on FHLBank Housing Goals
The Federal Housing Finance Agency yesterday published a final rule on the Federal Home Loan Banks’ Housing Goals, set to take effect in 2021.
The Final Rule, to be published in the Federal Register, amends the FHLBanks’ housing as follows:
- Eliminates the retrospective evaluation using Home Mortgage Disclosure Act data and sets a single prospective mortgage purchase housing goal as a share of each FHLBank’s total Acquired Member Asset (AMA) purchases;
- Sets a new small member participation housing goal for participation by small institutions;
- Eliminates the volume threshold and instead allow FHLBanks to propose different levels for goals for mortgage purchases and small member participation, subject to FHFA approval; and
- Simplifies and clarifies eligibility criteria to enable federally backed loans sold by small institutions eligible to count for goals purposes.
“By creating housing goal targets that are achievable for the Federal Home Loan Banks, the final rule helps ensure they make meaningful contributions to affordable homeownership,” said FHFA Director Mark Calabria. “This rule will expand responsible homeownership opportunities for underserved communities across the country.”
FHFA said the new goals take effect in 2021; enforcement of the rule will be phased in over three years.