The Agency’s final rule sets benchmarks for the Enterprises’ mortgage acquisitions, and updates the process for determining whether an Enterprise would submit an action plan when an Enterprise misses certain goals
The Federal Housing Finance Agency (FHFA) issued a final rule today that establishes new affordable housing goals for the loan purchases of Fannie Mae and Freddie Mac (the Enterprises) over the next three years, and updates the process for requiring an action plan when an Enterprise misses certain goals.
The housing goals, generally set in regulation by FHFA every three years, introduce 2025–2027 annual benchmarks for the Enterprises’ acquisitions to support equitable housing access for low-income families and families in low-income areas.
“The affordable housing goals better enable the Enterprises to effectively advance their missions and support housing finance markets in a safe and sound manner,” said FHFA Director Sandra L. Thompson. “It is critical that the Enterprises meet these goals, as required by law and regulation.”
For single-family housing goals, the Enterprises must meet the benchmark level or the actual market level of loans for each category outlined in the table below. The actual market level is determined retrospectively for the year based on Home Mortgage Disclosure Act (HMDA) data.
| Single-Family Goals (percentage of overall qualified single-family loan purchases) | |
|---|---|
| Single-Family Goals | Benchmark Level 2025–2027 |
| Low-Income Home Purchase Goal | 25% |
| Very Low-Income Home Purchase Goal | 6% |
| Minority Census Tracts Home Purchase Subgoal | 12% |
| Low-Income Census Tracts Home Purchase Subgoal | 4% |
| Low-Income Refinance Goal | 26% |
The final rule also establishes new “measurement buffers” to help determine if an Enterprise that misses certain single-family housing goals during the 2025–2027 cycle must develop a housing plan (which is an action plan to demonstrate how it will improve its performance). A housing plan may be required if the Enterprise fails to meet a goal and the gap between the Enterprise’s performance and the market level is greater than the buffer defined in the final rule.
The Enterprises must meet the benchmark levels — outlined in the table below — to fulfill the multifamily housing goals. For the low-income and very low-income goals, an Enterprise’s benchmark is the percentage of units — in multifamily properties with loans acquired by that Enterprise — that are affordable to tenants in the respective income categories. A separate subgoal measures the proportion of units in small (5–50 units) multifamily properties that are affordable to low-income families.
| Multifamily Goals (percentage of overall qualified units) | |
|---|---|
| Multifamily Goals | Benchmark Level 2025–2027 |
| Low-Income Goal | 61% |
| Very Low-Income Goal | 14% |
| Low-Income Small (5–50 unit) Subgoal | 2% |