the Federal Housing Finance Agency today a final regulation for the residential goals of the national network of Federal Home Loan Banks The aim is to encourage mortgage lending to low-income neighborhoods.
“By creating residential goals that are achievable for the federal construction credit banks, the final rule helps ensure that they make meaningful contributions to the payable Homeownership, ”said FHFA Director Mark Calabria. “This rule will expand responsibility Home ownership Opportunities for underserved communities across the country. “
the rule removes the $ 2.5 billion volume threshold set in 2010 – all mortgage purchases are now subject to the guidelines. It also limits the extent to which banks can use loans to higher income borrowers to meet housing goals. Only 25% of mortgages to borrowers with incomes greater than 80% of the median area’s income can qualify.
In addition, the final rule changes the residential goals as follows:
- Establish a single prospective real estate target for mortgage purchases as a proportion of each member bank’s total mortgage purchases.
- Eliminate the volume threshold and instead allow banks, subject to the approval of the FHFA, to propose different levels for targets for mortgage purchases and small member participation.
- Simplify and clarify the eligibility criteria to allow federal loans to be sold by small institutions that can be counted towards target purposes.
The network of federal construction credit banks with currently 11 members was supported by congress 1932 to increase the availability of mortgages.
To like Fannie Mae and Freddie Mac, these are so-called Government-Sponsored Enterprises or GSEs that can be borrowed cheaply because they assume that the federal government will not let them fail.