The Federal Housing Financial Agency today finalized new three-year affordable housing goals for Fannie Mae and Freddie Mac that lower both enterprises’ targets for single-family housing but leave in place existing targets for multifamily housing.
FHFA is required by law to set affordable housing goals covering Fannie’s and Freddie’s purchases of single-family mortgages and multifamily mortgages. A three-year plan covering years 2025 to 2027 was adopted during the Biden administration, but the agency’s current leadership elected to move forward with its own goals covering years 2026 to 2028.
Among the changes, the 2026-2028 goals lower the target percentage of low-income single-family mortgages to be purchased annually by each enterprise from 25% of purchases to 21%. It also lowers the target for very-low-income single-family mortgages from 6% to 3.5%. The targets for multifamily housing were left unchanged, with the lower-income target remaining at 61% and the very low-income target holding at 14%.
FHFA also said the new goals replace two area-based subgoals with one low-income areas subgoal, simplify the goal determination process and clarify inflation adjustments to maximum civil money penalties related to housing goals.
