FHFA Proposes Housing Goals for Federal Home Loan Banks

On May 27, the Federal Housing Finance Agency (FHFA) announced that it had submitted to the Federal Register for publication a proposed rule that would establish new affordable housing goals for the 12 Federal Home Loan Banks (FHLBs) for 2010 and beyond.  Under the Housing and Economic Recovery Act of 2008, FHFA is required to establish housing goals for the FHLBs that are consistent with FHFA’s affordable housing goals for Fannie Mae and Freddie Mac.

The proposed rule would establish three single-family owner-occupied purchase money mortgage goals and one single-family refinancing mortgage goal.  There would be separate purchase money mortgage goals for low-income families, families in low-income areas, and very low-income families.  The refinancing goal would target low-income families. 

Only FHLBs that purchase $2.5 billion or more in mortgages under the Acquired Member Assets program in a year would be affected.  Over the last 10 years, a range of one to eight FHLBs have purchased total AMA mortgages over this threshold in any one year, with the exception of 2006 and 2007, when no FHLB AMA purchases exceeded the threshold.

Comments on the proposed rule are due by July 12.  To include your comments in NCSHA’s submission, please send them to Garth Rieman by June 30.