The Federal Housing Finance Agency (FHFA) issued a proposed rule to establish the 2025-2027 housing goals for the government-sponsored enterprises (GSEs) Fannie Mae (OTCMKTS: FNMA) and Freddie Mac (OTCMKTS: FMCC).
The FHFA said the goals would ensure the GSEs’ mortgage purchases would responsibly promote “equitable access to affordable housing that reaches low- and moderate-income families, minority communities, and other underserved populations.” For the single-family housing goals categories, the GSEs would meet the benchmark level established in the final rule or meet the actual market level determined retrospectively for the year based on Home Mortgage Disclosure Act (HMDA) data.
For the single-family housing goals categories, the GSEs must meet the benchmark level established in the final rule or meet the actual market level determined retrospectively for the year based on Home Mortgage Disclosure Act (HMDA) data.
The proposed single-family housing goals are 25% for low-income home purchases, 6% for very low-income home purchases, 12% for minority census tracts home purchases, 4$ for low-income census tracts home purchases, and 26% for low-income refinances.
For the multifamily housing goals categories, the GSEs must meet the benchmark level established in the rule. Fannie Mae and Freddie Mac must purchase mortgages on multifamily properties with the target share of units affordable to families in each goal category, as well as meet a subgoal for low-income families in small (5-50 units) multifamily properties.
The proposed multifamily goals are 61% for low-income properties, 14% for very low-income properties and a 2% subgoal for low-income small (5-50 unites) properties.
“Given persistent challenges in the housing market, FHFA is proposing benchmark levels that reflect these dynamics and continue to ensure that the Enterprises remain focused on supporting key affordable housing segments while operating in a safe and sound manner,” said FHFA Director Sandra L. Thompson. “The goals proposed today offer a meaningful and realistic calibration that takes into account current and forecasted economic factors.”
The FHFA will accept comments on the proposed rule within 60 days of publication in the Federal Register.
;
Why would an American that has struggled to own and finance a home want to give $25,000 to someone that probably hasn’t went through the same struggles of doing without and making sure all their bills are paid on time so they can qualify for a mortgage and accumulate a downpayment for a home.
These policies put every American on the hook for this money since it is coming out of a government budget that doesn’t have enough money to pay their current obligations. This type of giveaway causes more government debt and higher taxes on those that have made the sacrifice to afford a home and receive no advantage from this giveaway.
Absolutely! These policies discourage the honest hard-working families, and it is a slap on the face of the honest Americans that believe hard working, savings, planning and education promotes wealth and affords homeownership.
More wasted money and more foreclosed homes just like before. The Federal government is dumber every time they come up with ideas that always waist everyone’s tax money.
I’m not sure what this means: equitable access to affordable housing that reaches low- and moderate-income families, minority communities, and other underserved populations.
If you qualify for a loan, have the income to support repayment and are credit worthy, why wouldn’t you get the loan? Or is the idea to give loans to borrowers who do not qualify for the current programs under present guidelines? Isn’t that how we got into the housing crisis
back in 2009 making loans to borrowers who can’t demonstrate the ability to repay.
What it means is income redistribution reworded to sound palatable in a capitalistic system. Regardless of how well intentioned a government program this is, it is still socialism. (Actually, the creators of programs like this are fully aware it is socialism, they just use well intentioned phraseology to create enough useful idiots to back the program.) Additionally, our (federal) government has no authority under the constitution to implement such programs.
When you expand the ratios and credit quality to lower income buyers you are not doing most of them any favors. They have no reserves or credit to handle a major repair whether to the house or car. That puts them in a terrible situation. Now you cost them the house, hurt their chances at a good rental or car loan and may destroy the marriage.
The idea of making more and more people dependent on the government does not solve the problems of this country. How about pour money into trade school and offer initiatives in high school to ALL KIDS to teach kids trades and skills. Give them opportunities for a FUTURE TO AFFORD A HOUSE! The government IS the problem and it needs to fix it, but not like this! You will only put at risk families at more risk with this sort of program! Teach them HOW TO ARRIVE ST HOME OWNERSHIP! Give them skills and dignity!
This exactly what happened in 2006. Giving loans to people who cannot qualify and once they have the loan, they can’t make the payments. Then we also got to deal with the CFPB!!
I agree with all of above, it will be a repeat of 2007, who comes up with these stupid ideas that haven’t worked in the past!!
The answer is don’t repeat the mistakes of the past. The new homeowners need to attend classes in the trades and learn to build the homes, not have them just given to then. Let them participate in the building process. They’ll learn new skills for employment in the trades and have pride in accomplishment. You’ll see these neighborhood thrive instead of becoming the same old ghettos with disintegrating homes.