The Federal Housing Finance Agency is looking ahead and planning its housing goals for 2015 through 2017, which is required under the Housing and Economic Recovery Act of 2008.
The agency opened up for public comment on all aspects of the proposed rule in order to establish annual housing goals for both Fannie Mae and Freddie Mac. The current housing goals are effective through the end of 2014.
Single-family housing goals boil down to three alternatives for 2015-2017:
1. Use the current two-step process, which involves setting both a prospective benchmark level and a retrospective market level measure based on Home Mortgage Disclosure Act data. If this plan goes through, it would follow the chart below. (Source FHFA; click for larger image)
2. Set only prospective benchmark levels. If this plan goes through the agency said it would consider adopting single-family benchmark levels in the final rule that are lower than the proposed levels.
3. Use only the retrospective market level measure. If plan three were implemented, it would not involve setting a prospective benchmark level.
The agency’s proposed rule also includes benchmark levels for multifamily housing goals and establishes a subgoal for small multifamily properties (5-50) affordable to low-income families.
“These levels would require the enterprises to continue to support affordable multifamily housing despite the expectation that the Enterprises' overall multifamily market share will continue to decline in the coming years due to increased participation by the private sector in the multifamily market,” the FHFA said.
Comments must be sent to the FHFA and must be submitted within 60 days or no later than Oct. 28.
(Source FHFA; click for larger image)