LegiStorm

Summary:
Highlights

GAO reviewed the Federal Housing Finance Agency's new rule entitled "2021 Enterprise Housing Goals." GAO found that the final rule: (1) contains the 2021 housing goals for Fannie Mae and Freddie Mac (the Enterprises); and (2) establishes benchmark levels for each of the housing goals for 2021.







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MACROBUTTON B-332823







January 5, 2021



The Honorable Mike
Crapo
Chairman
The Honorable Sherrod Brown
Ranking Member
Committee on Banking, Housing, and Urban Affairs
United States Senate



The Honorable Maxine
Waters
Chairwoman
The Honorable Patrick McHenry
Ranking Member
Committee on Financial Services
House of Representatives



Subject: Federal Housing Finance Agency: 2021
Enterprise Housing Goals



Pursuant to section
801(a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Federal Housing Finance Agency (FHFA) entitled ?2021
Enterprise Housing Goals? (RIN: 2590-AB04). 
We received the rule on December 17, 2020.It was published in the Federal Register as a final rule on December 21, 2020.85 Fed. Reg. 82881.The effective date of the rule is February
19, 2021.



According to FHFA, the final rule contains
the 2021
housing goals for Fannie Mae and Freddie Mac (the Enterprises). FHFA stated the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992, Pub. L. No. 102-550, title XIII,
106 Stat. 3941 (Oct. 28, 1992), requires it to establish annual housing goals
for mortgages purchased by the Enterprises. The agency further stated the housing goals
include separate categories for single family and multi-family mortgages on
housing that is affordable to low-income and very low-income families, among
other categories. FHFA also stated the
final rule establishes benchmark levels for each of the housing goals for 2021.



The Congressional
Review Act (CRA) requires a 60-day delay in the effective date of a major rule
from the date of publication in the Federal Register or receipt of the
rule by Congress, whichever is later.  5 U.S.C. § 801(a)(3)(A).  The
House of Representatives received the final rule on December 28, 2020. 166
Cong. Rec. H9175 (daily ed. Dec. 31, 2020).  The Congressional Record
does not indicate when the Senate received the final rule. The final rule was published on December 21,
2020.  85 Fed. Reg. 82881.  The final rule has a stated effective
date of February 19, 2021.  Therefore, based on the later receipt date of
December 28, 2020, the final rule does not have the required 60-day delay in
its effective date.





Enclosed is our
assessment of FHFA?s compliance with the procedural steps required by section
801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.If you have any questions about this report
or wish to contact GAO officials responsible for the evaluation work relating
to the subject matter of the rule, please contact Shari Brewster, Assistant General
Counsel, at (202) 512-6398.
























Shirley A. Jones
Managing Associate General Counsel



Enclosure



cc:Alfred
M. Pollard
General Counsel
Federal Housing Finance Agency

ENCLOSURE



REPORT UNDER 5 U.S.C.
§ 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
Federal
Housing Finance Agency
ENTITLED
?2021 Enterprise Housing Goals?
(RIN: 2590-AB04)





(i) Cost-benefit analysis



The Federal Housing Finance Agency (FHFA) did not discuss
the costs and benefits of the final rule. 
In its submission to us, the agency indicated that it considered
preparation of an analysis of the costs and benefits of this final rule to be
not applicable.



(ii) Agency actions relevant to the Regulatory
Flexibility Act (RFA), 5 U.S.C. §§ 603-605, 607, and 609



FHFA certified the final rule will not have a significant
economic impact on a substantial number of small entities.



(iii) Agency actions relevant to sections 202-205 of the
Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532-1535



As an independent regulatory agency, FHFA is not subject to
the Act.



(iv) Other relevant information or requirements under
acts and executive orders



Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.



On August 13, 2020, FHFA published a proposed
rule. 85 Fed. Reg. 49312.FHFA received 15 comment letters on the proposed rule, including
four letters from policy advocacy organizations; six letters from trade
associations representing lenders, home builders, credit unions, and other
housing market participants; three letters from individuals; one letter from
Fannie Mae; and one letter from Freddie Mac. 
FHFA addressed the comments in the final rule.



Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501-3520



FHFA determined the final rule does not contain any
information collection requirements subject to the Act.



Statutory authorization for the rule



FHFA promulgated the final rule pursuant to sections 4511,
4513, and 4526 of title 12, United States Code.



Executive Order No. 12866 (Regulatory Planning and Review)



As an independent regulatory agency, FHFA is not subject to
the Order.



Executive Order No. 13132
(Federalism)



As an independent regulatory
agency, FHFA is not subject to the Order.









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Full Report (4 pages)