The U.S. Federal Housing Finance Agency says its new housing goals will help more middle class families get mortgages after being disadvantaged by Biden-era quotas.

The government-sponsored enterprises could purchase notably fewer loans in minority Census tracts over the next two years, according to the regulator's plans unveiled Tuesday. The FHFA however anticipates that reduction to be offset by a new, streamlined goal, it said in a 24-page report. 

FHFA Director Bill Pulte in a statement blamed former president Joe Biden for distorting the housing market with "harmful mandates," and lauded the new directives as aligning with President Trump's affordability mandates.

"Thanks to President Trump, Fannie Mae and Freddie Mac will now focus on supporting affordable homeownership for all Americans while fulfilling their statutory duties," said Pulte, referring to the GSEs his office oversees. 

The GSEs could acquire 201,000 additional goal-eligible loans between 2026 and 2028, or $72 billion in additional financing through the new, lower benchmarks, the FHFA said. One of those lower benchmarks includes fewer acquisitions of low-income refinances, from 26% from the prior goals to 21% moving forward. 

The Mortgage Bankers Association, in welcoming the FHFA's announcement, highlighted the refi update. Trade group president and CEO Bob Broeksmit in a statement said it was "a constructive step that better reflects today's interest rate environment and promotes a more sustainable approach to affordable lending."

How the GSEs are shifting their acquisition mix

The FHFA says it'll boost the benefit to middle class home buyers through some technical updates to its goals. That includes removing two subgoals: 

• 12% of mortgages for borrowers with incomes of 100% of Area Median Income or less in minority census tracts;
• 4% of mortgages for borrowers in low-income census tracts that aren't minority tracts, and mortgages for borrowers with income over 100% AMI in low-income, minority tracts.

They'll be replaced by a single, new goal: 

• 16% of mortgages for borrowers in census tracts with tract median income of 80% AMI or less; and for borrowers with income of 100% or less of AMI in tracts with 100% AMI or less, and at least a 30% minority population. 

Other goals for acquisitions of low-income and very low-income purchase mortgages were lowered slightly. The GSEs' goals for three low-income multifamily categories were left unchanged. 

How the new mix will affect the market, and lenders

The FHFA assumes an approximate 16% reduction in GSE acquisitions of minority census tract loans. That is also affected by Pulte's move in March to end GSE participation in special purpose credit programs, where minority census tract loans were highly concentrated.  

"However, we anticipate that this reduction in MCT-qualifying acquisitions will be offset by an increase of low-income census tract performance within the low-income areas subgoal, resulting in  a net zero change in overall low-income area subgoal performance," the report read. 

The regulator anticipates a shift in certain low-income borrowers to the non-conforming market, or to government-sponsored loan programs. The new GSE acquisition mix goes into effect February 23, 2026. 

Under the new final rule, lenders will likely see their level of guarantee-fee subsidies go down, the report said. 

"However, the subsidy per dollar of the unpaid principal balance of goal-qualifying loans is not impacted by the final rule," the report read.  "Thus, we expect no new costs for the lenders under the final rule."