Fannie Mae & Freddie Mac Affordable Housing Goals

News:

FHFA Publishes Final Rule for 2023-2024 Enterprise Multifamily Housing Goals
- Learn more about the final rule .
FHFA Releases Final Rule for 2022-2024 Single-Family and 2022 Multifamily Goals
- Learn more about the 2022-2024 single-family and 2022 multifamily housing goals final rule.
- "The Size of the Affordable Mortgage Market: 2022-2024 Enterprise Single-Family Housing Goals" details the methodology used to estimate the market size for the Enterprise single-family housing goals.
- Learn more about where low income census tracts and minority census tracts are located.
FHFA Releases Housing Goals Data
- Learn more about Enterprise housing goals data.

Housing Goals Overview

Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008, Fannie Mae and Freddie Mac are subject to affordable housing goals covering their purchases of single-family mortgages and multifamily mortgages.

Single-Family Housing Goals

There are three single-family housing goals for home purchase mortgages (plus two subgoals) and one single-family housing goal for refinance mortgages.

The single-family home purchase (HP) housing goals are based on the percentage of the total number of home purchase mortgages that an Enterprise purchases each year that are for 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 which include families with income no greater than 100 percent of area median income who reside in designated disaster areas and the subgoal(s):
- Before 2022: low-income areas subgoal
- Since 2022: low-income census tracts subgoal and minority census tracts subgoal

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).

FHFA is required to estimate the size of the mortgage market in order to establish benchmarks for Fannie Mae and Freddie Mac single-family mortgage housing goals.

Multifamily Housing Goals

There are three multifamily housing goals and subgoals in the following categories:

A goal for the percentage of units affordable to low-income families (income no greater than 80 percent of area median income);
A subgoal for the percentage of units affordable to very low-income families (income no greater than 50 percent of area median income); and
A subgoal for units in small (5- to 50-unit) multifamily properties affordable to low-income families.

Before 2023, the multifamily goals and subgoals were based on the absolute number of affordable units in multifamily properties financed by mortgages purchased by the Enterprises. Starting in 2023, the multifamily goals and subgoals are based on the percentage of affordable units in multifamily properties financed by mortgages purchased by the Enterprises.