FHFA Proposes 2025-2027 Housing Goals for GSEs, Seeks Comments

(Image courtesy of FHFA; Breakout image courtesy of 500photos.com/pexels.com)

The Federal Housing Financing Agency last week issued a proposed rule that would establish the 2025-2027 yearly housing goals for Freddie Mac and Fannie Mae.

FHFA is requesting comments on all aspects of the proposed rule during the 60-day public comment period.

“Given persistent challenges in the housing market, FHFA is proposing benchmark levels that reflect these dynamics and continue to ensure that the Enterprises remain focused on supporting key affordable housing segments while operating in a safe and sound manner,” said FHFA Director Sandra L. Thompson. “The goals proposed today offer a meaningful and realistic calibration that takes into account current and forecasted economic factors.”

For the single-family housing goals categories, the GSEs must meet the benchmark level established in the final rule or meet the actual market level determined retrospectively for the year based on Home Mortgage Disclosure Act data.

The proposed rule would also establish a new process for evaluating compliance, by introducing new Enforcement Factors to be met instead of requiring the GSEs to submit a housing plan if they miss a goal. The Enforcement Factors will address, in part, the uncertainty in forecasting the market and the time lag in determining actual market levels.

For multifamily housing goals, the GSEs must meet the benchmark level established in the rule, and purchase mortgages on multifamily properties with the target share of units affordable to families in each goal category, as well as meet a subgoal for low-income families in small (5-50 units) multifamily properties.

To see the full Federal Register posting, as well as the comment submission information, click here.