FHFA Raises Proposed 2022-2024 Housing Goals for Fannie Mae, Freddie Mac
Fannie Mae and Freddie Mac have new homework assignments from the Federal Housing Finance Agency, which raise the stakes considerably for the government-sponsored enterprises’ 2022-2024 affordable housing goals.
FHFA on Wednesday issued new proposed housing goals for Fannie Mae and Freddie Mac for 2022 to 2024, aimed at ensuring the Enterprises responsibly promote equitable access to affordable housing that reaches low- and moderate-income families, minority communities, rural areas and other underserved populations.
This year, FHFA added two new single-family home purchase subgoals to replace the existing low-income areas subgoal. One new subgoal targets minority communities; the other continues to target low-income neighborhoods.
The new minority census tract subgoal is designed to improve access to fair and sustainable mortgage financing in communities of color. A mortgage qualifies under the new subgoal if:
–the borrower has an income at or below area median income; and
–the property is in a census tract where the median income is at or below AMI and minorities make up at least 30 percent of the population.
“The new subgoal for minority census tracts was designed to help preserve and support affordable housing in communities of color,” said FHFA Acting Director Sandra L. Thompson. “The subgoal benefits families at or below area median income, allowing them to stay in the communities they helped build.The Enterprises’ housing goals over the next three years should support equitable access to sustainable affordable housing opportunities in a safe and sound manner that bolsters the health of communities.”
Single-Family Housing Goals:
To meet a single-family housing goal or subgoal, the percentage of mortgage purchases by an Enterprise in that category must exceed either the benchmark level set in advance by FHFA or the market level for that year. The market level is determined retrospectively each year, based Home Mortgage Disclosure Act data showing the actual goal-qualifying share of the overall market, as measured by FHFA.
Multifamily Housing Goals:
To meet a multifamily housing goal or subgoal, an Enterprise must purchase mortgages on multifamily properties (properties with five or more units) with rental units affordable to families in each category. FHFA measures Enterprise multifamily goals performance against benchmark levels set in advance.
More about the GSE housing goals can be found at https://www.fhfa.gov/SupervisionRegulation/Rules/RuleDocuments/2022-2024%20EHGs%20NPR%20to%20Fed%20Reg_website.pdf.
