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FHFA Issues Final Rule On Housing Goals For Federal Home Loan Banks

NationalMortgageProfessional.com
Jun 03, 2020
Photo credit: Getty Images/krblokhin

The Federal Housing Finance Agency sent a final rule on the Federal Home Loan Banks’ Housing Goals to the Federal Register for publication. 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 FHFA Director Mark Calabria. “This rule will expand responsible homeownership opportunities for underserved communities across the country.”
 
The final rule amends the loan banks’ housing goals to:
 
►Eliminate the retrospective evaluation using HMDA data and set a single prospective mortgage purchase housing goal as a share of each bank’s total Acquired Member Asset purchases;
►Set a new small member participation housing goal for engagement by small institutions;
►Eliminate the volume threshold and instead allow the banks 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 loan banks, the final rule has a goal of making meaningful contributions to affordable homeownership.

 
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