The Federal Housing Finance Agency (FHFA) has sent to the Federal Register for publication a final rule on the Federal Home Loan Banks’ (FHLBanks) Housing Goals.
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,” says FHFA Director Mark Calabria. “This rule will expand responsible homeownership opportunities for underserved communities across the country.”
The final rule amends the 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 (AMA) purchases;
- set a new small member participation housing goal for participation by small institutions;
- eliminate the volume threshold and instead allow FHLBs 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 banks, the final rule helps ensure the banks make meaningful contributions to affordable homeownership, the FHFA says.
To read the full Final Rule, click here.
Photo: Mark Calabria