Freddie Mac 2015 Annual Report Download - page 167

Management's Discussion and Analysis Regulation and Supervision
Freddie Mac 2015 Form 10-K 165
affordable housing goal targets multifamily rental housing affordable to low-income families. The
multifamily affordable housing subgoals target multifamily rental housing affordable to very low-income
families and small (5- to 50-unit) multifamily properties affordable to low-income families.
The single-family goals are measured by comparing our performance with the actual share of the market
that meets the criteria for each goal and a benchmark level established by FHFA. If our performance on a
single-family goal falls short of the benchmark, we still could achieve the goal if our performance meets or
exceeds the actual share of the market that meets the criteria for the goal for that year.
In August 2015, FHFA issued the final rule establishing affordable housing goals for Freddie Mac and
Fannie Mae for 2015 through 2017. The rule applies retroactively to the beginning of 2015. Under FHFA’s
final rule:
• The benchmark levels for three of our single-family goals increased;
• Both of our multifamily goals increased; and
• FHFA established a new subgoal related to small (5- to 50-unit) multifamily properties affordable
to low-income families.
Our goals for 2015, 2016, and 2017 are set forth below.
2015 2016 2017
Single-family purchase money goals (benchmark levels):
Low-income 24% 24% 24%
Very low-income 6% 6% 6%
Low-income areas 19% TBD TBD
Low-income areas subgoal 14% 14% 14%
Single-family refinance low-income goal (benchmark level) 21% 21% 21%
Multifamily low-income goal (in units) 300,000 300,000 300,000
Multifamily very low-income subgoal (in units) 60,000 60,000 60,000
Multifamily small property low-income subgoal (in units) 6,000 8,000 10,000
We expect to report our performance with respect to the 2015 affordable housing goals in March 2016. At
this time, based on preliminary information, we believe we met three of our single-family goals and our
three multifamily goals for 2015, but believe we failed to meet the FHFA benchmark level for the other
single-family goals. FHFA will not be able to make a final determination on our performance until market
data is released in October 2016.
Affordable Housing Allocations
The GSE Act requires us to set aside in each fiscal year an amount equal to 4.2 basis points of each
dollar of total new business purchases, and allocate or transfer such amount to certain housing funds.
FHFA suspended the requirement to set aside or allocate funds when we were placed into
conservatorship. However, in December 2014, FHFA terminated the suspension and directed us to begin
setting aside amounts, in accordance with the following terms and conditions:
• The amount we will set aside each fiscal year, commencing with fiscal year 2015, will be based on
our total new business purchases during such fiscal year; and
• Within 60 days after the end of each fiscal year commencing with fiscal year 2015, we will transfer the