A new set of housing goals for Fannie
Mae and Freddie Mac
were finalized by their regulator, the Federal Housing Finance Agency (FHFA), on
August 19. These anticipated goals target what percentage of business they need
to direct to single-family and multifamily for low-income housing from 2015-2017.
The last affordable housing benchmarks for Fannie and
Freddie were set in 2012.
“The single-family goals advance the Enterprises’ statutory missions to provide access to credit for creditworthy borrowers and provide liquidity to the U.S. housing market while operating in a safe and sound manner,” said FHFA Director Mel Watt. “The multifamily goals will create rental opportunities for those who need affordable housing. Together, these goals establish a solid foundation for affordable and sustainable homeownership and rental opportunities in this country.”
The following represents FHFA’s specific goals set for multifamily. Please note that this information was pulled directly from the agency’s announcement for accuracy:
- Multifamily low-income goal
for both Enterprises at 300,000 units for each of the three years
2015-2017, up from the proposed 250,000 units each year for Fannie Mae and up
from the 210,000, 220,000 and 230,000 units proposed for Freddie Mac in the
three years. This goal represents an increase of 50,000 units for Fannie Mae
and 100,000 for Freddie Mac from the 2014 benchmark;
- Very low-income multifamily housing
subgoal for Fannie Mae at 60,000 units for each of the three
years 2015-2017, the same as the proposed 60,000 units for each of the three
years. Freddie Mac’s very low-income subgoal levels are also set at 60,000
units for each of the three years, up from the proposed goals of 43,000 units,
46,000 units and 50,000 units, respectively, and an increase of 20,000 for
Freddie Mac from the 2014 benchmark; and
- Establish a new low-income housing subgoal for Enterprise purchases of mortgages on small (5- to 50-unit) multifamily properties. Fannie Mae’s goal is 6,000 units in 2015, 8,000 units in 2016 and 10,000 units in 2017, down from the proposed goals of 20,000 units, 25,000 units and 30,000 units, respectively. Freddie Mac’s goal is also 6,000 units in 2015, 8,000 units in 2016 and 10,000 units in 2017, up from the proposed goals of 5,000 in 2015, and down from the proposed goals of 10,000 units in 2016 and 15,000 in 2017.
For additional details, please see these related chart summaries.