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News Release

FHFA Proposes 2018-2020 Housing Goals For Fannie Mae and Freddie Mac

FOR IMMEDIATE RELEASE
6/29/2017

Washington, D.C. – In accordance with the provisions of the Housing and Economic Recovery Act of 2008, the Federal Housing Finance Agency (FHFA) today proposed a rule that would establish new housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2018 through 2020.  FHFA is requesting comment on the proposed rule.  When finalized, the new goals will replace the current goals which will expire at the end of 2017.

The proposed rule would establish new Single-Family Housing Goals and new Multifamily Housing Goals.

Single-Family Housing Goals:

Current and Proposed Single-Family Goals 
(percentage of overall qualified single-family purchases)

Single-Family Goals

Current Benchmark Level
  2015-2017

Proposed Benchmark Level
2018-2020

Low-Income Home Purchase Goal

24%

24%

Very Low-Income Home Purchase Goal

6%

6%

Low-Income Areas Home Purchase Subgoal

14%

15%

Low-Income Refinance Goal

21%

21%

 

To meet a single-family housing goal or subgoal, the percentage of mortgage purchases by an Enterprise that meets each goal or subgoal must exceed either the benchmark level set in advance by FHFA or the market level for that year.  The market level is determined retrospectively each year, based on the actual goal-qualifying share of the overall market as measured by FHFA based on Home Mortgage Disclosure Act (HMDA) data for that year. 

Multifamily Housing Goals:

Current and Proposed Multifamily Goals 
(number of multifamily units)

Multifamily Goals

Current Level
  2015-2017

Proposed Level
2018-2020

Low-Income Goal

 300,000

315,000

Very Low-Income Goal

60,000

60,000

Low-Income Small Multifamily Subgoal

2015: 6,000

2016: 8,000

2017: 10,000 units

10,000 units

 

To meet a multifamily housing goal or subgoal, an Enterprise must purchase mortgages on multifamily properties (properties with five or more units) with rental units affordable to families in each category, as well as a subgoal for properties with 5-50 units.  FHFA measures Enterprise multifamily goals performance against benchmark levels set by FHFA.

While the Enterprises remain in conservatorship, they continue to have the mission of supporting a stable and liquid national market for residential mortgage financing.  FHFA has continued to establish annual housing goals for the Enterprises and to assess their performance under the housing goals each year during conservatorship.

Interested parties are invited to submit comments on this proposed rule within 60 days of publication in the Federal Register.  Comments should be submitted to the Federal Housing Finance Agency, Division of Housing Mission and Goals, 400 7th Street, S.W., Washington, DC 20219 or via FHFA.gov.

Link to proposed rule [Note: the proposed rule will be published in the Federal Register].

Attachments:

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.8 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.
Contacts:

Media: Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032
Consumers: Consumer Communications or (202) 649-3811

© 2017 Federal Housing Finance Agency