FHFA Issues Final Rule on Fannie Mae, Freddie Mac Housing Goals

FHFA recently issued a final rule on the single-family low-income (borrowers with incomes no greater than 80% of AMI (Area Median Income)), very low-income (borrowers with incomes no greater than 50% of AMI) housing goals, and the minority census tracts and low-income census tracts subgoals for Fannie Mae and Freddie Mac for 2022 through 2024.  In addition, FHFA’s final rule addressed Fannie Mae and Freddie Mac’s multifamily housing goals for 2022.  Effective February 28, 2022, the final rule establishes the following single-family housing goals in terms of percentages: Low-Income Home Purchase Goal, 28; Very Low-Income Home Purchase Goal, 7; Low-Income Refinancing Goal, 26, Minority Census Tracts Subgoal, 10, and Low-Income Census Tracts Subgoal, 4. The multi-level housing goals in units are as follows: Low-Income Goal, 415,000; Very Low-Income Subgoal, 88,000; and Small Multifamily Low-Income Subgoal, 23,000 for Freddie and 17,000 for Fannie. 

For the single-family housing goals, FHFA considers seven factors: national housing needs; economic, housing, and demographic conditions; performance towards past goals; ability of Fannie and Freddie to make mortgage credit available; other available mortgage data; size of mortgage markets; and need to maintain the financial condition of Fannie and Freddie.  As for the multifamily housing goals, FHFA considers six factors: national mortgage credit needs (and the ability of Fannie and Freddie to provide liquidity and stability in the market); performance towards past goals; the size of the multifamily mortgage market for housing affordable to low-income families; ability of Fannie and Freddie to make mortgage credit available; availability of public subsidies; and need to maintain the financial condition of Fannie and Freddie.