The Federal Housing Finance Agency issued a final rule on the Federal Home Loan Banks’ housing goals, which will take effect in 2021 with enforcement being phased in over three years.
The rule sets a single prospective mortgage purchase goal as a share of each FHLBank’s total Acquired Member Asset purchases and eliminates the volume threshold. It also sets a goal for participation by small institutions and expands the eligibility criteria to enable federally backed loans to count toward goals.
The final rule also reflects ICBA's recommendations from its comment letter last year. ICBA said it generally supports the plan but offered suggestions to improve its application, such as providing additional clarity on how the FHLBanks would meet the standards during economic downturns and how the FHFA would treat non-compliance.