Housing Goals Performance

Single-Family Housing Goals

The single-family goals defined under the Safety and Soundness Act include separate categories for home purchase mortgages for low-income families, very low-income families, and families that reside in low-income areas. Performance on the single-family home purchase goals is measured as the percentage of the total home purchase mortgages purchased by an Enterprise each year that qualify for each goal or subgoal. There is also a separate goal for refinancing mortgages for low-income families, and performance on the refinancing goal is determined in a similar way.
Each of the single-family housing goals includes two parts: a benchmark level and a market level. The benchmark level is a percentage target that is set by FHFA in advance, based primarily on FHFA's market forecasts and past performance on the goals. The market level is determined after the year is over, based on data collected under the Home Mortgage Disclosure Act (HMDA) for the year. In order to achieve a single-family housing goal, the actual percentage of mortgage purchases that satisfy the goal criteria must meet or exceed either the benchmark level or the market level for that year, as shown in the tables below.
In 2017, the most recent year for which housing goals determinations are available, Fannie Mae met all single-family goals and subgoals. Freddie Mac met the single-family low-income areas home purchase goal and subgoal, as well as the low-income refinance goal. However, FHFA determined that Freddie Mac failed to meet the single-family low-income and very low-income home purchase goals. FHFA further determined that achievement of these 2017 goals by Freddie Mac was feasible. In making these determinations, FHFA analyzed the size and composition of the conventional conforming primary mortgage market, as measured using the Home Mortgage Disclosure Act (HMDA) data for 2017.
The single-family housing goal benchmarks, market levels, and official Enterprise performance, as calculated by FHFA, are as follows:

Single-Family Housing Goals Performance 2010-2017

(An underlined figure denotes missed goals)

	2010	2011	2012	2013	2014	2015	2016	2017
Low-Income Borrower Home Purchase Share
Benchmark	27%	27%	23%	23%	23%	24%	24%	24%
Actual Market	27.2%	26.5%	26.6%	24.0%	22.8%	23.6%	22.9%	24.3%
Fannie Mae Performance	25.1%	​25.8%	25.6%	23.8%	23.5%	23.5%	22.9%	25.5%
Freddie Mac Performance	26.8%	23.3%	24.4%	21.8%	21.0%	22.4%	23.8%	23.2%
	2010	2011	2012	2013	2014	2015	2016	2017
Very Low-Income Borrower Home Purchase Share
Benchmark	8%	8%	7%	7%	7%	6%	6%	6%
Actual Market	8.15%	8.0%	7.7%	6.3%	5.7%	5.8%	5.4%	5.9%
Fannie Mae Performance	7.2%	7.6%	7.3%	6.0%	5.7%	5.6%	5.2%	5.9%
Freddie Mac Performance	7.9%	6.6%	7.1%	5.5%	4.9%	5.4%	5.7%	5.7%
	2010	2011	2012	2013	2014	2015	2016	2017
Low-Income Home Purchase Share Subgoal
Benchmark	13%	13%	11%	11%	11%	14%	14%	14%
Actual Market	12.1%	11.4%	13.6%	14.2%	15.0%	15.2%	15.9%	17.1%
Fannie Mae Performance	12.4%	11.6%	13.3%	14.0%	15.5%	15.6%	16.2%	18.3%
Freddie Mac Performance	10.4%	9.2%	11.4%	12.3%	13.6%	14.5%	15.6%	16.4%
	2010	2011	2012	2013	2014	2015	2016	2017
Low-Income Borrower Refinance Share
Benchmark	21%	21%	20%	20%	20%	21%	21%	21%
Actual Market	20.2%	21.5%	22.3%	24.3%	25.0%	22.5%	19.8%	25.4%
Fannie Mae Performance	20.9%	23.1%	21.8%	24.3%	26.5%	22.1%	19.5%	24.8%
Freddie Mac Performance	22.0%	23.4%	22.4%	24.1%	24.4%	22.8%	21.0%	24.8%

   

Multifamily Housing Goals

The multifamily goals defined under the Safety and Soundness Act include separate categories for mortgages on multifamily properties (properties with five or more units) with rental units affordable to low-income families and for mortgages on multifamily properties with rental units affordable to very low-income families. FHFA has also established by regulation a small multifamily low-income subgoal for properties with 5-50 units. The multifamily goals evaluate the performance of the Enterprises based on numeric targets, not percentages, for the number of affordable units in properties backed by mortgages purchased by an Enterprise. The regulation does not include a retrospective market level measure for the multifamily goals and subgoals, due in part to a lack of comprehensive data about the multifamily market such as that provided by HMDA for single-family mortgages. As a result, FHFA currently measures Enterprise multifamily goals performance against the benchmark levels only. Both Fannie Mae and Freddie Mac achieved each of the multifamily housing goals in 2017. The multifamily goal levels and official Enterprise performance, as calculated by FHFA, are as follows:

Multifamily Goals Performance (2010-2017)

	2010	2011	2012	2013	2014	2015	2016	2017
Low-Income Multifamily Goal
Fannie Mae Goal	177,750	177,750	285,000	265,000	250,000	300,000	300,000	300,000
Freddie Mac Goal	161,250	161,250	225,000	251,000	200,000	300,000	300,000	300,000
Fannie Mae Performance	214,997	301,224	375,924	326,597	260,124	307,510	351,235	401,145
Freddie Mac Performance	161,500	229,001	298,529	254,628	273,807	394,043	407,340	408,096
Very Low-Income Multifamily Goal
Fannie Mae Goal	42,750	42,750	80,000	70,000	60,000	60,000	60,000	60,000
Freddie Mac Goal	21,000	21,000	59,000	50,000	40,000	60,000	60,000	60,000
Fannie Mae Performance	53,908	82,244	108,878	78,071	60,542	69,078	65,445	82,674
Freddie Mac Performance	29,656	35,471	60,084	56,752	48,689	76,935	73,032	92,274
Small Multifamily Goal
Small Low-Income Multifamily Goal	n/a	n/a	n/a	n/a	n/a	6,000	8,000	10,000
Fannie Mae Performance	12,552	13,480	16,801	13,827	6,732	6,731	9,310	12,043
Freddie Mac Performance	459	691	829	1,128	2,076	12,802	22,101	39,473

  

How Performance on the Housing Goals is Determined

Single-Family Housing Goals

The single-family housing goals are expressed as percentages. To calculate the performance for each goal, the number of mortgages that meet the criteria for the goal is divided by the total number of mortgages eligible for that goal acquired by the Enterprise during the calendar year. For example, Freddie Mac's 2016 performance on the low-income home purchase goal was calculated as the ratio of the number of home purchase mortgages that Freddie Mac acquired in 2016 where borrowers had incomes no greater than 80 percent of the area median income to the total number of eligible home purchase mortgages that Freddie Mac acquired in 2016. The single-family housing goals are limited to mortgages on owner-occupied properties with one to four units. Mortgages that are insured by FHA or guaranteed by VA or RHS are not counted for purposes of the housing goals. Performance for each goal is calculated separately. For example, if a borrower's income is at or below 50 percent of the median income in the area where the home is located, that mortgage would be counted for both the very low-income home purchase goal and the low-income home purchase goal. The single-family home purchase housing goals cover families in the following categories:

• Low-income families (income no greater than 80 percent of area median income);

• Very low-income families (income no greater than 50 percent of area median income); and

• Families in low-income areas.
  

For purposes of the housing goals, "families in low-income areas" is defined to include:

• All families in low-income census tracts (median tract income no greater than 80 percent of area median income);

• Low- to moderate-income families (income no greater than 100 percent of area median income) in high-minority census tracts (tract minority population of at least 30 percent and median tract income less than 100 percent of area median income); and

• Low- to moderate-income families (income no greater than 100 percent of area median income) in designated disaster areas.

The housing goal for families in low-income areas includes a separate subgoal covering just the first two categories (families in low-income census tracts and low- to moderate-income families in high-minority census tracts). The single-family refinance housing goal is based on the percentage of the total number of refinance mortgages that an Enterprise purchases each year that are for low-income families (income no greater than 80 percent of area median income).

Multifamily Housing Goals

The multifamily housing goals are based on the total number of qualifying units, rather than a percentage of all units. Performance for the multifamily goals is the number of units meeting the goal criteria that are located in properties where an Enterprise purchased the mortgage in a given calendar year. The multifamily housing goals include all conventional mortgages on properties with five or more units.
For 2016 there were three multifamily housing goals: a goal for the total number of units affordable to low-income families (income no greater than 80 percent of area median income); a subgoal for the total number of units affordable to very low-income families (income no greater than 50 percent of area median income); and a subgoal for low-income units in small (5-50 unit) properties. Because renter income is often not available, a proxy based on rent paid by the tenant is generally used to determine the affordability of rental units.
The multifamily housing goals allow for overlap. If a unit meets the criteria for each of the multifamily housing goals, the unit is counted for each goal.

Housing Goal Documents

View all Annual Housing Activity Reports and Official FHFA Determinations for Fannie Mae and Freddie Mac.

 

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Page last updated June 6, 2019 ​