Fannie Mae met all of the housing goals the Federal Housing Finance Agency imposed for 2020, but Freddie Mac failed its low-income refinance goal.
The government-sponsored enterprise lagged the wider market in its acquisitions of low-income refinances. Freddie Mac has 45 days to submit a plan to the FHFA for actions it will take over the next three years to get back on track, according to a letter the regulator sent to Freddie Mac.
The FHFA determined the wider market’s low-income share of refinances was 21%, while only 19.7% of the nearly 2.5 million refinanced mortgages Freddie Mac acquired last year were low-income. The FHFA also determined that meeting the 2020 goal was feasible for Freddie Mac. The GSE met the goal the prior year, when 22.4% of its refinanced mortgages were low-income.
In a statement, FHFA Acting Director Sandra Thompson emphasized the benefit for borrowers who refinance with current historically low mortgage rates. Thompson charged Freddie Mac with developing a business strategy to help more low-income households take advantage of the opportunity.
“Meeting the housing goals is not optional, and FHFA will continue to work with the Enterprises to ensure they meet their statutory and Conservatorship Scorecard requirements,” Thompson said.
