On August 19th, 2015, the Federal Housing Finance Agency (FHFA) adopted a final rule establishing single-family and multifamily housing goals for Fannie Mae and Freddie Mac for 2015 through 2017. In addition, the final rule establishes a new housing goal for small multifamily properties affordable to low-income families. FHFA establishes these annual goals for mortgages purchased by Fannie Mae and Freddie Mac pursuant to the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008.
For both Fannie Mae and Freddie Mac, the single-family low-income home purchase goal will rise from 23 percent to 24 percent for each of the three years 2015-2017. The goal for single-family very low-income home purchases is set at 6 percent for each of the three years which marks a decrease of one percentage point from the 2014 benchmark goal of 7 percent. The single-family low-income areas home purchase goal will rise to 14 percent, an increase of three percentage points from the 2014 benchmark goal of 11 percent, and the goal for single family refinances by low-income families increased from the 2014 benchmark goal of 20 percent to 21 percent.
Meanwhile, the multifamily low-income goal for Fannie Mae and Freddie Mac is set at 300,000 units for each of the three years 2015-2017. This goal represents an increase of 50,000 units for Fannie Mae and 100,000 for Freddie Mac from the 2014 benchmark. Fannie Mae and Freddie Mac are each required to target 60,000 units annually for very low-income families for each of the three years, 2015-2017, which is a 20,000 unit increase from the 2014 benchmark for Freddie Mac.
FHFA also finalized a new goal for purchases of mortgages on small multifamily properties affordable to low-income families. Fannie Mae and Freddie Mac’s goal is 6,000 units in 2015, 8,000 units in 2016, and 10,000 units in 2017.
The final rule becomes effective 30 days after publication in the Federal Register which occurred on September 3rd, 2015.
