WASHINGTON (9/3/14)--The Federal Housing Finance Agency (FHFA) has announced it is seeking comment for a proposed rule to establish housing goals for Fannie Mae and Freddie Mac for 2015-2017.
The Housing and Economic Recovery Act of 2008 requires the agency to establish the goals, and the current rule is set to expire at the end of this year.
The agency is requesting comment on three separate options for establishing the single-family housing goals:
According to a release from the FHFA, it has proposed single-family benchmark levels for 2015-2017 that the agency would consider adopting under the first option, which can be seen in the adjacent table. The proposal would keep the benchmarks at current levels for low and very low-income families "in an effort to encourage Fannie Mae and Freddie Mac to promote safe and sound lending to lower-income borrowers."
If the second option was adopted, the FHFA would consider adopting single-family benchmark levels in the final rule that are lower than the proposed levels. The third option would not involve setting a prospective benchmark level.
The proposed rule also includes benchmark levels for multifamily housing goals and, for the first time, would establish a goal for small multifamily properties of between five and 50 units. These are intended to be affordable for low-income families.
The proposed multifamily benchmark levels would be the same for Fannie Mae and would gradually increase for Freddie Mac.
"These levels would require the enterprises to continue to support affordable multifamily housing despite the expectation that the enterprises' overall multifamily market share will continue to decline in the coming years due to increased participation by the private sector in the multifamily market," according to an FHFA statement.
FHFA is also requesting comment on whether multifamily housing goals credit should be allowed for blanket loans on manufactured housing communities.
Comments are due to the FHFA by Oct. 28. Use the resource link below to access the full proposed rule.