FHFA published a notice of proposed rulemaking in the Federal Register on October 2, 2025, proposing 2026-2028 housing goals for single-family and multi-family dwellings. Public comments were accepted between October 2 and November 3, 2025.
“For too long, Biden has distorted the housing market with harmful mandates that prioritized government quotas at the expense of middle-class families,” said FHFA Director Bill Pulte. “Thanks to President Trump, Fannie Mae and Freddie Mac will now focus on supporting affordable homeownership for all Americans while fulfilling their statutory duties.”
On the single-family side, 21% of owner-occupied mortgages acquired by Fannie and Freddie must go to borrowers earning less than 80% of the area median income (AMI), down from the current benchmark level of 25% for 2025 through 2027.
For borrowers earning less than 50% AMI – Very Low Income Home Purchase Goal (VLIP) – the GSEs must allocate 3.5% of their purchases in this area, up from 6% in the previous plan. The low-income refinancing target (LIR) went from 26% to 21%.
The plan’s subgoal for home purchases in low-income areas, which counts certain loans for single-family, owner-occupied homes made in census tracts with median incomes at or below 80% of the area average, or to borrowers earning at the area average who purchase in lower-income, high-minority neighborhoods, is at a benchmark of 16%.
To simplify the framework for the agency’s housing goals, FHFA says in the rule announcement that it is eliminating temporary measurement buffers for 2025-2027 that were intended to encourage compliance when benchmark levels exceeded market levels.
Because the benchmarks for the 2026-2028 period are below forecast market levels, FHFA says the companies can adjust their mortgage purchasing strategies to account for market fluctuations without the need for an additional regulatory cushion.
Multifamily housing targets are unchanged from the 2025-2027 benchmark; 61% of multifamily properties financed by mortgages purchased by Fannie and Freddie must go to borrowers earning less than 80% of the area median income (AMI) and 14% must go to families with incomes less than or equal to 50% of the AMI.
The share of all target-eligible units in company-financed multifamily housing units that are located in small multifamily buildings and affordable to low-income families, defined as those earning no more than 80% of the area median income, was set at a benchmark of 2%.
The final rule is expected to become effective 60 days after publication in the Federal Register.
Bob Broeksmit, CMB, CEO and president of the Mortgage Bankers Association, said the association “appreciates” that FHFA took into account the comments it submitted.
“We welcome the decision to lower the refinancing target for low-income single-family homes, a constructive step that better reflects the current interest rate environment and promotes a more sustainable approach to affordable lending. Additionally, the final targets and benchmarks for multifamily housing strike an appropriate balance, supporting a healthy multifamily ecosystem that promotes both affordable and market-rate production to expand supply and help reduce rental costs,” Broeksmit said.
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