FHFA Establishes New Housing Goals for Fannie Mae and Freddie Mac

On September 2, 2010, the Federal Housing Finance Agency (FHFA) announced it would soon publish in the Federal Register new housing goals for Fannie Mae and Freddie Mac for 2010 and 2011. The final rule includes three goals for mortgages used to purchase single-family, owner-occupied homes: (1) 27 percent for low-income families, (2) 8 percent for very low-income families, and (3) a percentage to be set annually for families in areas with lower-income populations, areas high concentrations of minority residents, and federally-declared disaster areas. There is also a 21 percent goal for mortgages used to refinance mortgages for single family, owner-occupied homes for low-income families. The rule also includes multifamily mortgage goals for each enterprise and requires them to report on the acquisition of mortgages involving low-income units in 5- to 50-unit multifamily properties. The enterprises may not meet goals by purchasing private-label mortgage backed securities. FHFA emphasizes that the enterprises should not "undertake economically adverse or high-risk activities" to achieve the goals, or use the conservatorship as an excuse for missing goals.