The proposed goals expand the number of Fannie and Freddie loans that would go to low- and moderate-income families, minorities, rural areas and underserved populations.

WASHINGTON – The Federal Housing Finance Agency (FHFA) proposed housing goals for Fannie Mae and Freddie Mac (the Enterprises) that would cover the years 2022 to 2024.

According to FHFA, the goals were “designed to ensure the Enterprises responsibly promote equitable access to affordable housing that reaches low- and moderate-income families, minority communities, rural areas and other underserved populations.”

FHFA proposed two new single-family home purchase subgoals that would replace a current subgoal. One new subgoal targets minority communities; the other continues to target low-income neighborhoods.

FHFA says that the new minority census tract subgoal should improve access to mortgage financing in communities of color. A mortgage qualifies under the new subgoal if:

  • A borrower has an income at or below area median income (AMI)
  • The property is in a census tract where the median income is at or below AMI and minorities make up at least 30% of the population

“The new subgoal for minority census tracts was designed to help preserve and support affordable housing in communities of color,” says FHFA Acting Director Sandra L. Thompson. “The subgoal benefits families at or below area median income, allowing them to stay in the communities they helped build.”

Proposed single-family housing goals

  • Low-income home purchase goal: 24% currently, rising to 28%
  • Very low-income home purchase goal: 6% currently, rising to 7%
  • Minority census tracts home purchase subgoal: Introduced at 10%
  • Low-income census tracts home purchase subgoal: Introduced at 4%
  • Low-income refinance goal; 21% currently, rising to 26%

For Fannie Mae and Freddie Mac to meet a single-family housing goal or subgoal, their percentage of mortgage purchases in that category must exceed either the benchmark level set in advance by FHFA or the market level for that year. The market level is determined retrospectively each year, based on Home Mortgage Disclosure Act (HMDA) data showing the actual goal-qualifying share of the overall market.

Multifamily housing goals

  • Low-income goal: Currently 315,000, rising to 415,000
  • Very low-income subgoal: Currently 60,000, rising to 88,000
  • Small multifamily (5-50 units) low-income subgoal: Currently 10,000 units, rising to 23,000

 To meet a multifamily housing goal or subgoal, Fannie and Freddie must purchase mortgages on multifamily properties (five or more units) with rental units affordable to families in each category. FHFA measures Enterprise multifamily goals performance against benchmark levels set in advance.

Interested parties are invited to submit comments on the proposed rule within 60 days of publication in the Federal Register. Comments should be submitted to:

Federal Housing Finance Agency

Division of Housing Mission and Goals

400 7th Street, S.W.

Washington, DC, 20219

Comments can also be submitted through FHFA’s website,

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Author: kerrys