Share This Page

FHFA Publishes Final Rule on the FHLBanks’ Housing Goals

June 03, 2020 / Source: FHFA

News Release

FHFA Publishes Final Rule on the FHLBanks' Housing Goals

Rule provides greater availability of mortgage financing for underserved borrowers

FOR IMMEDIATE RELEASE

6/3/2020

​​​​​Washington, D.C. – To help underserved borrowers, the Federal Housing Finance Agency (FHFA) today sent to the Federal Register for publication a final rule on the Federal Home Loan Banks’ (FHLBanks) Housing Goals. The new goals take effect in 2021 and enforcement of the rule will be phased in over three years. 

“By creating housing goal targets that are achievable for the Federal Home Loan Banks, the final rule helps ensure they make meaningful contributions to affordable homeownership,” said Director Mark Calabria. “This rule will expand responsible homeownership opportunities for underserved communities across the country.”

The final rule amends the FHLBanks’ housing goals to: 

  • Eliminate the retrospective evaluation using HMDA data and set a single prospective mortgage purchase housing goal as a share of each FHLBank’s total Acquired Member Asset (AMA) purchases; 
  • Set a new small member participation housing goal for participation by small institutions; 
  • Eliminate the volume threshold and instead allow FHLBanks to propose different levels for the goals for mortgage purchases and small member participation, subject to FHFA approval; and  
  • Simplify and clarify the eligibility criteria to enable federally backed loans sold by small institutions eligible to count for goals purposes.

By creating housing goal targets that are achievable for the FHLBanks, the final rule helps ensure the FHLBanks make meaningful contributions to affordable homeownership.

Link to FHLBanks Housing Goals Rule​

Link to FHLBanks Housing Goals Fact Sheet​

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.4 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFAYouTubeFacebook, and LinkedIn.

Contacts:

Media: Raffi Williams Raffi.Williams@FHFA.gov