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Enterprise Housing Goals and Duty to Serve Background The Safety and Soundness Act requires FHFA to establish annual housing goals for mortgages purchased by the Enterprises. The housing goals include separate categories for single-family and multifamily mortgages on housing that is affordable to low-income and very low-income families, among other categories. The housing goals provisions of the Safety and Soundness Act were substantially revised in 2008 with the enactment of HERA. Under this revised structure, FHFA established housing goals for the Enterprises for 2010 and 2011 in a final rule published on September 14, 2010. FHFA established new housing goals levels for the Enterprises for 2012 through 2014 in a final rule published on November 13, 2012 (12 CFR Part 1282). The housing goals established by FHFA in these two rulemakings include four goals and one subgoal for single-family, owner-occupied housing and one goal and one subgoal for multifamily housing. Under HERA and FHFA regulations, the Enterprises were subject to the following housing goal categories for 2014 and 2015: 1. Low-income home purchase goal, for home purchase mortgages to families with incomes no greater than 80 percent of area median income. 2. Very low-income home purchase goal, for home purchase mortgages to families with incomes no greater than 50 percent of area median income. 3. Low-income areas home purchase subgoal, for home purchase mortgages to families living in census tracts with tract median incomes no greater than 80 percent of area median income, or families with incomes no greater than 100 percent of area median income who live in census tracts with a minority population of 30 percent or more and a tract median income less than 100 percent of area median income. 4. Low-income areas home purchase goal, which includes mortgages that meet the criteria under the low-income areas home purchase subgoal as well as home purchase mortgages to families with incomes no greater than 100 percent of area median income who live in federally declared disaster areas. 5. Low-income refinance goal, for refinance mortgages to families with incomes no greater than 80 percent of area median income. 6. Low-income multifamily goal, for rental units for families in multifamily properties with incomes no greater than 80 percent of area median income (or rental equivalent). 7. Very low-income multifamily subgoal, for rental units for families in multifamily properties with incomes no greater than 50 percent of area median income (or rental equivalent). In 2015, the Enterprises we also subject to the following multifamily subgoal: 8. Small multifamily low-income subgoal, for rental units for families in multifamily properties with 5-50 units which are affordable to families with incomes no greater than 80 percent of area median income (or rental equivalent.) This is a new goal category for 2015-17, established to encourage the Enterprises to finance units in this very important part of the affordable housing market. Since 2010, FHFA determines whether an Enterprise meets a single-family goal if its performance meets or exceeds either the preset benchmark level or a retrospective market comparison figure using Home Mortgage Disclosure Act (HMDA) data. 46 FEDERAL HOUSING FINANCE AGENCY
SUPERVISION AND OVERSIGHT Figure 16 • 2014-2015 Enterprise Housing Goals Performance 2014 2015 Category Benchmarks Performance a Market b FHFA Goals Determination Benchmarks Performance c SINGLE-FAMILY GOALS d Low-income home purchase goal 23% Fannie Mae: 23.5% Freddie Mac: 21.0% 22.8% Fannie Mae: Met Freddie Mac: Did Not Meet 24.0% Fannie Mae: 23.5% Freddie Mac: 21.0% Very low-income home purchase goal 7% Fannie Mae: 5.7% Freddie Mac: 4.9% 5.7% Fannie Mae: Met Freddie Mac: Did Not Meet 6.0% Fannie Mae: 5.6% Freddie Mac: 5.4% Low-income areas home purchase subgoal 11% Fannie Mae: 15.5% Freddie Mac: 13.6% 15.0% Fannie Mae: Met Freddie Mac: Met 14.0% Fannie Mae: 15.5% Freddie Mac: 13.6% Low-income areas home purchase goal 18% Fannie Mae: 22.7% Freddie Mac: 20.1% 22.1% Fannie Mae: Met Freddie Mac: Met 9.0% Fannie Mae: 20.4% Freddie Mac: 19.0% Low-income refinance goal 20% Fannie Mae: 26.5% Freddie Mac: 26.4% 25.1% Fannie Mae: Met Freddie Mac: Met 21.0% Fannie Mae: 22.1% Freddie Mac: 22.8% MULTIFAMILY GOALS (units) Low-income multifamily units Fannie Mae: 250,000 Freddie Mac: 200,000 Fannie Mae: 262,050 Freddie Mac: 273,434 NA Fannie Mae: Met Freddie Mac: Met Fannie Mae: 300,000 Freddie Mac: 300,000 Fannie Mae: 307,510 Freddie Mac: 379,199 Very low-income multifamily units Fannie Mae: 60,000 Freddie Mac: 40,000 Fannie Mae: 60,542 Freddie Mac: 48,689 NA Fannie Mae: Met Freddie Mac: Met Fannie Mae: 60,000 Freddie Mac: 60,000 Fannie Mae: 69,076 Freddie Mac: 76,935 Small multifamily property low-income units (new goal for 2015) NA Fannie Mae: 6,732 Freddie Mac: 2,076 NA Fannie Mae: Met Freddie Mac: Met Fannie Mae: 6,000 Freddie Mac: 6,000 Fannie Mae: 6,731 Freddie Mac: 12,758 Source: Federal Housing Finance Agency a b c d Official performance in 2013 as determined by FHFA, based on analysis of Enterprise loan-level data. Goal-qualifying shares of single-family home purchase or refinance conventional conforming mortgages originated in the primary mortgage market, based on FHFA analysis of 2013 HMDA data. Market performance for 2014 will be determined by FHFA later in 2015. Performance as reported by the Enterprises in their March 2015 Annual Housing Activities Reports. Official performance on all goals in 2014 will be determined by FHFA after review of Enterprise loan-level data. Low-income refinance goal for 2013-14 included credit for qualifying permanent loan modifications. Minimum percentages of all dwelling units financed by Enterprise acquisitions of home purchase or refinance mortgages on owner-occupied properties. REPORT TO <strong>CONGRESS</strong> • 2015 47
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A P P E N D I X : H I S T O R I C A
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Federal Housing Finance Agency KEY
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