Housing Mission and Goals

HOUSING GOAL PERFORMANCE FOR FANNIE MAE AND FREDDIE MAC


BACKGROUND:

FHFA established housing goals for purchases of single-family mortgages and multifamily mortgages by Fannie Mae and Freddie Mac during 2012-2014 in a November 13, 2012 final rule.

CALCULATION OF GOALS:

Single-family Goals. There are five single-family goal categories—four for home purchase mortgages and one for refinance mortgages:

(1) A low-income (LI) home purchase (HP) goal, for families purchasing homes with incomes no greater than 80 percent of Area Median Income (AMI);

(2) A very low-income (VLI) home purchase goal, for families purchasing homes with incomes no greater than 50 percent of AMI;

(3) A low-income areas (LIA) home purchase subgoal, for families purchasing homes in (a) low-income census tracts, with median income no greater than 80 percent of AMI, and (b) high-minority tracts, with minority population of at least 30 percent and tract median income less than 100 percent of AMI if borrower income does not exceed 100 percent of AMI;

(4) A low-income areas home purchase goal, which includes the LIA subgoal plus home purchase mortgages on properties in Federally-declared disaster areas if borrower income does not exceed 100 percent of AMI; and

(5) A low-income refinance goal, for low-income families (those with incomes no greater than 80 percent of AMI) who are refinancing their mortgages. Permanent modifications of mortgages for low-income families under the Administration’s Home Affordable Modification Program (HAMP) also count toward this goal, because they are comparable to refinance mortgages.

Each goal or subgoal is expressed as the share of all home purchase [for (1) – (4)] or refinance [for (5)] mortgages acquired by the Enterprise during the calendar year. For example, performance on (1) for any year is calculated as the ratio of home purchase loans acquired by an Enterprise which are for families with incomes no greater than 80 percent of AMI to all home purchase mortgages acquired by the Enterprise. FHFA annually notifies the Enterprises of the disaster areas increment for the low-income areas home purchase goal.

Multifamily Goals. There are also two multifamily goals for the Enterprises:

(1) A low-income multifamily goal, expressed as the number of units in multifamily [i.e., five or more units] properties that are financed by an Enterprise that are affordable to families with incomes no greater than 80 percent of AMI; and

(2) A very-low income multifamily goal (or subgoal), expressed as the number of units in multifamily properties that are financed by an Enterprise that are affordable to families with incomes no greater than 50 percent of AMI.

ESTABLISHMENT OF HOUSING GOALS FOR 2012-2014:

Rules Establishing Housing Goals for 2012-14. FHFA published a proposed rule establishing housing goals for 2012-14 on June 11, 2012. After reviewing the comments on the proposed rule, FHFA published a final rule on November 13, 2012. The levels of the percentage-based single-family goals were the same for both Enterprises. Because the multifamily goals are unit-based, and because Fannie Mae has a larger multifamily mortgage purchase program than Freddie Mac, these goals were set at higher levels for Fannie Mae than for Freddie Mac.

Single-family Goal Details and Performance in 2012. For the single-family goals, an Enterprise’s performance is compared both with the pre-set “benchmark” level established in the final rule and with the corresponding share of all home purchase or refinance mortgages originated in the primary mortgage market that qualified for each goal in the same year. Such market-based goal-qualifying shares are based on FHFA’s analysis of the borrower and locational characteristics of home purchase and refinance mortgages, as calculated from Home Mortgage Disclosure Act (HMDA) data for the given year. If an Enterprise’s performance exceeds either the benchmark level or the corresponding figure for the market as a whole, it is deemed to have passed the goal.

Multifamily Goal Details and Performance in 2012.
There is no market data on multifamily mortgage originations comparable to the HMDA data for single-family mortgages. Thus multifamily goal performance can only be compared with the pre-set benchmark levels.

2012 GOAL PERFORMANCE:

The single-family goal benchmarks, market levels, and official Enterprise performance, as calculated by FHFA, for 2012 are as follows:

2012

2012

Official Goal Performance

Goal Category

Benchmark Level

Market Level

Fannie Mae

Freddie Mac

Low-income HP

23%

26.6%

25.6%

24.4%

Very-low income HP

7%

7.7%

7.3%

7.1%

LIA HP goal

20%

23.2%

22.3%

20.6%

LIA HP subgoal

11%

13.6%

13.1%

11.4%

Low-income Refi

20%

22.3%

21.8%

22.4%

• Fannie Mae’s performance exceeded the benchmark levels on all single-family goals, but fell slightly short of the market levels on all but the low-income areas home purchase goal, and

• Freddie Mac’s performance also exceeded the benchmark levels on all single-family goals, but fell short of the market levels on three of the home purchase goals.

The multifamily goal levels and Enterprise performance, as calculated by FHFA, for 2012 are as follows:

2012 Goal Level (in units)

Official Goal Performance

Goal Category

Fannie Mae

Freddie Mac

Fannie Mae

Freddie Mac

Low-income multifamily

285,000

225,000

375,924

298,529

Very low-income multifamily

80,000

59,000

108,878

60,084

• Both Enterprises exceeded the low-income multifamily goal and the very low-income multifamily subgoal.

FHFA also requires the Enterprises to report on their funding of low-income units in small (5- to 50-unit) multifamily properties, although there are no formal goals in this area. In 2012 Fannie Mae funded 16,801 such units and Freddie Mac funded 829 such units.

The Enterprises were notified about FHFA’s determinations on goal and market performance for 2012 in letters dated October 28, 2013.


HISTORICAL PERFORMANCE:


The Enterprises' housing goal performance for the years 2007-11 is available below.  

2011 Housing Goal Performance
2010 Housing Goal Performance
2009 Housing Goal Performance

2008 Housing Goal Performance
2007 Housing Goal Performance

An overview of the Enterprises' housing goal performance for the years 2001 through 2009 is provided below.

Overview of Goal Performance 2001-2009

The annual housing goals information for Fannie Mae and Freddie Mac is more fully described in their Annual Housing Activities Reports (AHARs) and housing goal tables. In the housing goal tables for 2009 and prior years, only non-proprietary tables are released.  All the AHAR tables are released beginning in 2010, as they are all non-proprietary.

FHFA reviews the AHARs and housing goal tables, and notifies the Enterprises of their official performance results. However, the housing goals tables shown below are those prepared and submitted to FHFA and Congress by the Enterprises; the data therein have not been validated by FHFA.  If FHFA finds that either Enterprise did not achieve a housing goal, FHFA will determine whether that goal was feasible and notify the Enterprise of its determination.



Fannie Mae Housing Goals - RSS 2.0

Fannie Mae Housing Goals

+ 2014
+ 2013
+ 2012
+ 2011
+ 2010
+ 2009
+ 2008
+ 2007
+ 2006
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+ 2004
- 2003
  2002 Housing Goals Tables (PDF) submitted March 17, 2003
  2002 Annual Housing Activities Report (PDF) submitted March 17, 2003
 

Freddie Mac Housing Goals - RSS 2.0

Freddie Mac Housing Goals

- 2014
  2013 Annual Housing Activities Report (PDF) submitted March 12, 2014
  2013 Housing Goals Tables (PDF) submitted March 12, 2014
 
+ 2013
+ 2012
+ 2011
+ 2010
+ 2009
+ 2008
+ 2007
+ 2006
+ 2005
+ 2004
+ 2003

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (FHEFSSA) required HUD to set annual housing goals for the Enterprises and monitor the Enterprises' performance in achieving these goals.  This responsibility was transferred to the Federal Housing Finance Agency under the Housing and Economic Recovery Act of 2008 (P.L. 110-289), enacted on July 30, 2008. 

Please email fhfainfo@fhfa.gov for further information.