The Federal Housing Finance Agency (FHFA) is seeking public comments on amendments proposed to the Federal Home Loan Bank Housing Goals.
The Federal Home Loan Bank Act requires that the director of FHFA set housing goals for the purchase of mortgages by federal home loan banks. The federal home loan banks purchase mortgages through the Acquired Member Asset (AMA) program.
The amendments would set a single prospective mortgage purchase housing goal as a share of each federal home loan banks total AMA purchases. They would also establish a new small member participation housing goal for small banks, and allow federal home loan banks to propose different goals for mortgage purchases and small member participation. Finally, the proposed amendments would simplify and expand the eligibility criteria to enable federally backed loans to count for goals purposes.
“To be successful housing goals should lead the FHLBanks to make affordable housing part of their business plans for AMA,” FHFA Director Melvin Watt said. “The overall approach of the proposed amendments will encourage FHLBanks and their members to build on the strengths of the AMA program to assist targeted borrower groups in a safe and sustainable manner.”
Interested parties can submit comments on the proposed rule via FHFA.gov within 90 days of publication in the Federal Register. They can also send comments by mail to FHFA, Eighth Floor, 400 Seventh Street SW, Washington D.C. 20219. Further, FHFA will hold a webinar on Nov. 8 at 2 p.m. EST to explain the proposed rule.