FHFA proposes new GSE multifamily housing goals

Agency Rule-Making & Guidance Federal Issues FHFA GSEs Fannie Mae Freddie Mac Mortgages Multifamily

On August 16, FHFA announced a proposed rule regarding benchmark levels for the 2023 and 2024 multifamily housing goals for Fannie Mae and Freddie Mac (GSEs). According to the proposed rule, the GSEs will switch from using the number of units in multifamily properties financed annually by each institution to a new methodology of using the percentage of units financed. Instead of measuring the multifamily housing goals based on a n​umbe​​r ​​of units, the proposed rule would use the ​percentage​ ​​​​​​of each of the GSE’s annual multifamily loan acquisitions that are affordable to each income category. FHFA acknowledged that the existing methodology does not incentivize the GSEs to continue to acquire mortgages backed by goal-qualifying units after the institutions have purchased enough mortgages to meet the minimum numeric benchmark levels. According to FHFA Director Sandra Thompson, the proposal “would ensure that each [of the GSE’s] focus remains on affordable segments of the multifamily market and reaffirms FHFA’s commitments to its statutory duty to promote affordability nationwide.”