FHFA Issues Proposed Rule on Single-Family and Multifamily Housing Goals

On August 25, 2021, FHFA issued a proposed rule that revises the Agency’s GSE single-family and multifamily housing goals for 2022-2024 pursuant to the Federal Housing Enterprises Financial Safety and Soundness Act (the Safety and Soundness Act).  The proposed rule would also replace the current low-income areas subgoal with separate area-based subgoals to target the subgoal’s individual components.  Finally, the proposed rule would also change definitions and other provisions in the Safety and Soundness Act to conform the regulation to the Agency’s existing practices in measuring GSE performance.

Among other changes, the proposed rule would change the existing single-family home purchase benchmark goals for low-income and very low-income mortgages.  It would also change the existing multifamily purchase benchmark goal for low-income rental units and the benchmark subgoals for very low-income available units and small multifamily low-income available units.

FHFA’s proposed rule would change the existing single-family home purchase mortgage benchmarks goals for (i) Low-Income mortgages from 24 percent in 2021 to 28 percent in 2022-2024; and (ii) Very Low-Income mortgages from 6 percent in 2021 to 7 percent in 2022-2024.  The proposed rule would also change the Low-Income mortgage-refinancing goal from 21 percent in 2021 to 26 percent in 2022-2024.  

FHFA will continue to accept written comments on the proposed rule on or before October 25, 2021.