FHFA Final Rule Released

A critical step in addressing barriers to sustainable housing opportunities was made by the Federal Housing Finance Agency (FHFA) this week. 

The FHFA released its ‘Final Rule’ governing Fair Lending, Fair Housing and Equitable Housing Finance Plans, alongside the Government-Sponsored Enterprises (GSEs) release of its 2023 performance reports and Equitable Housing Finance Plan updates for 2024.

“As we reflect on the significance of Fair Housing Month, FHFA and its regulated entities will continue to address barriers that make affordable housing difficult to find,” said FHFA Director Sandra L. Thompson upon Monday’s release. “These initiatives are critically important at a time when housing affordability remains a persistent challenge.”

The final rule codifies in regulation FHFA’s fair lending oversight requirements for the GSEs and the Federal Home Loan Banks, the Enterprises’ Equitable Housing Finance Plans, along with education, counseling, language and reporting requirements. The GSEs' Plans focus on educating consumers, reducing closing costs, introducing innovation into underwriting, and combating appraisal bias. 

The National Association of Realtors (NAR) applauded the FHFA's efforts to codify existing practices and programs.

"The Equitable Housing Finance Plans are an active step in closing homeownership gaps among demographic groups," said Bryan Greene, NAR's vice president of policy advocacy. "We applaud the work that FHFA has done to support lenders who create special-purpose credit programs. This work promotes more fairness and greater soundness in the housing finance system and, ultimately, more homeownership opportunities for more Americans. We look forward to working with FHFA to further support homeownership and narrow the homeownership gaps."

FHFA will hold a public listening session on its plans in June 2024 and anticipates releasing the next set of plans in January 2025.