FHFA Sets Affordable Housing Goals, Requesting Public Comment

ThernFederal Housing Finance Agency (FHFA) is seeking public comment on a set ofrnpreliminary affordable housing goals for the two government sponsoredrnenterprises (GSEs) Fannie Mae and Freddie Mac for the next three years.  There is a single set of single familyrnfinancing goals for both GSEs and separate goals for each covering multifamilyrnunits.   FHFA is required by the Housing and Economic Recovery Act of 2008 to establish thesernannual housing goals for the GSEs.</p

The agency is also proposing threernalternative approaches for establishing single family housing goals.  Alternative 1, would use the current two-steprnprocess which involves setting both a prospective benchmark level and arnretrospective market level measure based on Home Mortgage Disclosure Actrndata.  Alternative 2 would set onlyrnprospective benchmark levels and Alternative 3 would use only the retrospectivernmarket level measure.</p

Using Alternative 1, the goal forrnboth Freddie Mac and Fannie for single family purchase mortgages to low incomernfamilies is proposed to remain at the 2014 level of 23 percent of overallrnpurchases over the 2015 through 2017 period.  rnThe 2014 goal of 7 percent for purchases by very-low income familiesrnwill be unchanged for the next three years as well.  FHFA is leaving these goals at present levelsrnto encourage Fannie Mae and Freddie Mac to promote safe and sound lending tornlower-income borrowers.â€