The Federal Housing Finance Agency (“FHFA”) has proposed new single-family and multifamily housing goals for Fannie Mae and Freddie Mac (collectively, the “GSEs”) for 2018-2020.
For single-family housing, the proposed goals would require that the percentage of overall qualified single-family mortgage purchases for the GSEs be as follows: the Low-Income Home Purchase Goal would be 24%; the Very Low-Income Home Purchase Goal would be 6%; the Low-Income Areas Home Purchase Subgoal would be 15%; and the Low-Income Refinance Goal would be 21%. To meet these single-family housing goals, the single-family mortgages purchased must meet or exceed the benchmark level or the market level for that year.
For multifamily housing, the proposed goals would require that the GSEs purchase mortgages for multifamily properties (multifamily is defined as properties with five or more units) as follows: the Low-Income Goal would be 315,000 units; the Very Low-Income Goal would be 60,000 units; and the Low-Income Small Multifamily Subgoal would be 10,000 units. To meet these multifamily goals, the GSEs must meet these benchmarks outlined by FHFA.
FHFA’s website provides more details on the proposed goals, the timeline for submission of comments and a link to the Federal Register notice. Comments are due September 5, 2017.