The Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions for federal administrative agencies went live again last week after its initial publication was removed a few weeks ago. What were previously acknowledged by the White House to be “Independent Agencies” like FHFA and the Federal Reserve going back to 1995 are now termed “Historically Independent Agencies.” Along with other federal agencies, FHFA announced its 2025 regulatory agenda as part of this process.
Ending Federal Home Loan Bank Reform
The 2025 regulatory agenda marks a clear FHFA pivot away from the long-term Federal Home Loan Bank (FHLBanks) reforms articulated in the 2023 FHLBank System at 100 report. The updated list of completed actions, reveals several withdrawals of planned rules related to this effort. Most of these were withdrawn in April of 2025. The previously planned proposals that were withdrawn include:
- A proposed rule that would have updated the regulatory definition of the FHLBanks mission, list of mission activities, and board responsibilities;
- A proposed rule that would addressed membership in the FHLBanks including circumventing or evading the housing mission connection;
- Two proposed rule that would have addressed FHLBank Affordable Housing Program (AHP) requirements including retention agreements, subsidy requirements, revolving loan funds, application processes, income eligibility flexibility and grant amounts in high-cost areas, monitoring and compliance requirements, and program access expansion;
- A proposed rule that would have amended requirements for the FHLBank Community Investment Cash Advance (CICA) program requirements;
- A proposed rule that would have established a minority census tract subgoal for the FHLBank annual housing goals, similar to the existing one for the Enterprises;
- A proposed rule that would have required enhanced credit underwriting of member institutions by the FHLBanks, attempting to avoid a repeat of 2023 where substantial FHLBank advances were taken by three banks before they failed;
- A proposed rule that would have created additional stress testing protocols for the FHLBanks; and
- A proposed rule that would have consolidating mission planning and reporting requirements for the FHLBanks
Repealing Fair Housing, Consumer Protection, and Minority and Women Inclusion Rules
In July of this year FHFA proposed to repeal its rules codifying the equitable housing finance plan program as well as enforcement and supervision of fair housing, fair lending, and consumer protection statutes. The FHFA regulatory agenda confirms this, though the proposed rule had already been released. The comment period ends September 26. Notably, if this rule is finalized it likely removes FHFA’s ability to impose civil money penalties on Fannie Mae, Freddie Mac, or the Federal Home Loan Banks for violations of the Fair Housing Act, the Equal Credit Opportunity Act, or for unfair or deceptive acts or practices in violation of the Federal Trade Commission Act. Combined with the statutory protection in civil litigation and from other agencies that the Enterprises receive in conservatorship, this would mean that Fannie Mae and Freddie Mac would be effectively immune from monetary penalties for violating these laws.
As part of the regulatory agenda FHFA announced an intention to repeal the primary minority and women inclusion rule, which would include the implementation of the minority and women inclusion portions of the Safety and Soundness Act, and the minority and women outreach program regulations.
Revisiting Suspended Counterparties
Under the suspended counterparty regulation, FHFA can ban parties from doing business with Fannie Mae, Freddie Mac, or the Federal Home Loan Banks when convicted of fraud, embezzlement, or similar crimes. Those banned can include individuals and firms and conduct can in some cases be attributed across relationships from person to organization and from organization to person.
In July of 2023 FHFA proposed to expand these grounds to included civil judgments or administrative sanctions. Industry groups largely opposed the proposal, arguing that the revision allowed for long-term bans effectively barring participation in the mortgage industry for relatively minor conduct. FHFA proposed a narrower version in October of 2024 that excepted de minimis conduct from possibility of suspension orders. The unified agenda entry states that FHFA intends to withdraw the October 2024 proposal and issue a proposed amendment that would make clear that “reputation risk” is not grounds for suspension. FHFA’s entry is somewhat unclear on if it intends to finalize other elements of the July 2023 proposal to sweep in civil and administrative judgements as grounds for suspension. This rule will be one worth following given Director Bill Pulte’s focus on mortgage fraud, as the suspended counterparty programs could permit FHFA to follow any sanctions obtained against parties by other agencies with suspension orders.
Formal Withdrawal of Calabria-Era Liquidity Proposed Rule
In January of 2021, the Calabria-era FHFA proposed a set of short, intermediate, and long-term liquidity requirements for the Enterprises that would operate by regulation and defined regulatory enforcement process. This proposal received comments, but was never further acted upon by FHFA. FHFA has now announced forthcoming formal withdrawal of this proposal. Had FHFA not formally withdrawn it, it could have theoretically finalized a rule from the original comment process in 2021 at some date in the future. Now any such effort would require re-proposal and a new comment period.
The withdrawn proposed rule was generally:
- Restrictive on the Enterprises holding mortgage-backed securities for liquidity;
- Encouraging toward holding US treasuries; and
- Consistent with a recap and release plan for the Enterprises with FHFA playing a traditional prudential bank-style regulator role at conclusion.
Changing Fannie Mae and Freddie Mac Affordable Housing Goals
Not visible on the FHFA regulatory agenda but showing up in the queue of FHFA rules currently under Office of Management and Budget (OMB) review is a proposed rule to modify Fannie Mae and Freddie Mac’s affordable housing goals for 2026 - 2028. This would presumably alter the existing affordable housing goals for 2026 and 2027 that were finalized in December of 2024 and became effective in February of 2025. Stakeholders have a right to request a meeting with OMB during the consideration period that will be part of the OMB review record. The proposed rule itself won’t be public until after OMB review.
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