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Final rule on FHLBanks' housing goals
Yesterday, the Federal Housing Finance Agency (FHFA) announced it had sent to the Federal Register for publication a final rule on the Federal Home Loan Banks’ (FHLBanks) Housing Goals. The new goals become effective in 2021, and enforcement of the rule will be phased in over three years. The final rule amends the FHLBanks’ housing goals to:
- Eliminate the retrospective evaluation using HMDA data and set a single prospective mortgage purchase housing goal as a share of each FHLBank’s total Acquired Member Asset (AMA) purchases;
- Set a new small member participation housing goal for participation by small institutions;
- Eliminate the volume threshold and instead allow FHLBanks to propose different levels for the goals for mortgage purchases and small member participation, subject to FHFA approval; and
- Simplify and clarify the eligibility criteria to make federally backed loans sold by small institutions eligible to count for goals purposes.
The FHFA also released an FHLBanks' Housing Goals Fact Sheet.