FHFA Issues Final Rule on Fannie Mae, Freddie Mac Housing Goals

Weiner Brodsky Kider PC
Contact

Weiner Brodsky Kider PC

FHFA recently issued a final rule on the single-family low-income (borrowers with incomes no greater than 80% of AMI (Area Median Income)), very low-income (borrowers with incomes no greater than 50% of AMI) housing goals, and the minority census tracts and low-income census tracts subgoals for Fannie Mae and Freddie Mac for 2022 through 2024.  In addition, FHFA’s final rule addressed Fannie Mae and Freddie Mac’s multifamily housing goals for 2022.  Effective February 28, 2022, the final rule establishes the following single-family housing goals in terms of percentages: Low-Income Home Purchase Goal, 28; Very Low-Income Home Purchase Goal, 7; Low-Income Refinancing Goal, 26, Minority Census Tracts Subgoal, 10, and Low-Income Census Tracts Subgoal, 4. The multi-level housing goals in units are as follows: Low-Income Goal, 415,000; Very Low-Income Subgoal, 88,000; and Small Multifamily Low-Income Subgoal, 23,000 for Freddie and 17,000 for Fannie. 

For the single-family housing goals, FHFA considers seven factors: national housing needs; economic, housing, and demographic conditions; performance towards past goals; ability of Fannie and Freddie to make mortgage credit available; other available mortgage data; size of mortgage markets; and need to maintain the financial condition of Fannie and Freddie.  As for the multifamily housing goals, FHFA considers six factors: national mortgage credit needs (and the ability of Fannie and Freddie to provide liquidity and stability in the market); performance towards past goals; the size of the multifamily mortgage market for housing affordable to low-income families; ability of Fannie and Freddie to make mortgage credit available; availability of public subsidies; and need to maintain the financial condition of Fannie and Freddie.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weiner Brodsky Kider PC | Attorney Advertising

Written by:

Weiner Brodsky Kider PC
Contact
more
less

Weiner Brodsky Kider PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.