Under the terms recommended in FHFA’s review of the Federal Home Loan Banks, 85 current members would fail to meet the 10% mortgage-related asset rule.
Stricter energy codes would lower residents’ housing costs, improve their health and make them more resilient to the impacts of climate change, according to environmental and consumer groups.
The government-sponsored enterprise has collaborated with state housing finance agencies to develop standardized loan documents to simplify the use of downpayment assistance programs.
Although the GSEs financed fewer affordable units in small multifamily properties, the number of affordable units in Fannie- and Freddie-financed high-rises and garden apartments spiked from 170,000 to 248,000.
FHFA Director Sandra Thompson said workforce housing exemptions should still encourage multifamily borrowers to preserve affordable housing for “extended periods.”
The regulator’s plan to refocus the FHLBanks on housing finance may take some time to get underway. Changing the eligibility requirements for membership, though, doesn’t seem to be likely.
Although Fannie Mae and Freddie Mac met their duty-to-serve obligations, that doesn't mean they achieved all their goals. Both enterprises received low scores in some categories.
Freddie takes steps to ensure its older multifamily housing stock is in adequate repair. This is particularly crucial for properties in affordable housing programs.
Fannie’s decision to lower the downpayment requirement for loans on two- to four-unit multifamily properties should boost investment in this key source of affordable housing.