FHFA Publishes Proposed Rule to Amend Federal Home Loan Bank Housing Goals
On November 2, 2018, the FHFA issued a proposed rule to amend the existing Federal Home Loan Bank Housing Goals regulation.
The proposed rule would replace the existing housing goals for Federal Home Loan Banks with new streamlined goals that reflect their unique mission while supporting affordable housing. It provides certainty for the Banks by informing them of the housing goal levels in advance and clarity and flexibility by consolidating the existing multiple goals into a measurement of performance. The proposed rule would:
- Set a single prospective mortgage purchase housing goal as a share of each member Bank’s total Acquired Member Asset purchases;
- Set a small member participation housing goal for small institutions;
- Eliminate the volume threshold and permit the Banks to propose different goal levels for mortgage purchases and small member participation upon FHFA approval; and
- Simplify and expand the eligibility criteria to enable federally-backed loans to count for goal purposes.
Participation by the Banks in the Acquired Member Asset program is voluntary. Public comments on the proposed rule are due on or before January 31, 2019.
