The Federal Housing Finance Agency recently proposed benchmark goals for Fannie Mae and Freddie Mac (the “GSEs”) in serving low income households for both single and multifamily.
To satisfy the multifamily goals, the GSEs must purchase a requisite number of mortgages on multifamily (five or more unit) properties. The current goals expire at the end of this year, and the new goals will span 2018-2020. While the proposed very low-income goal remains at 60,000 units, FHFA has proposed increasing the low-income goal by 15,000 units (from 300,000 for 2015-2017 to 315,000 for 2018-2020).
On the single-family side, the GSEs must either meet the forecasted goals (published in the paper) or actual market data measured retrospectively to satisfy the goals. The paper includes forecasted home purchase goals for low-income borrowers, very low-income borrowers, low-income areas, and a refinance goal for low-income borrowers.
Interested parties are invited to submit comments on this proposed rule by September 5, 2017. Comments should be submitted to the Federal Housing Finance Agency, Division of Housing Mission and Goals, 400 7th Street, S.W., Washington, DC 20219 or via the web.
