Consumer and Civil Rights Groups Warn FHFA’s 2026–2028 Housing Goals Could Exacerbate Affordability Crisis

A growing coalition of housing, consumer, and civil rights organizations is raising alarm over the Federal Housing Finance Agency’s (FHFA) proposed 2026–2028 Enterprise Housing Goals, arguing that the new benchmarks could make homeownership even less attainable for low- and moderate-income families.

In a detailed letter sent to the FHFA this week, the Consumer Federation of America (CFA) joined by 27 other advocacy groups warned that the proposed changes would effectively scale back support for struggling homebuyers and deepen existing inequalities in the U.S. housing market.

According to their analysis, the FHFA’s plan to reduce low-income and very-low-income home purchase goals could prevent as many as 177,000 families from securing government-sponsored enterprise (GSE)-backed mortgages through Fannie Mae and Freddie Mac over the next three years.

Advocates Say Rule Changes Undermine Homeownership Access

The coalition’s letter criticizes the FHFA for proposing to merge two long-standing subgoals—the “Low-Income Census Tracts Home Purchase Subgoal” and the “Minority Census Tracts Home Purchase Subgoal” into a single, broader target.

Advocates argue that this consolidation would weaken accountability and limit mortgage access in historically underserved neighborhoods, particularly communities of color. By effectively diluting the specific focus on minority census tracts, the change could make it harder for lenders to meet the unique needs of these markets and further entrench racial disparities in homeownership.

“This proposal undermines decades of progress made under the GSE housing goals,” the letter states. “It moves away from the clear Congressional directive for Fannie Mae and Freddie Mac to lead not lag the mortgage industry in ensuring equitable access to credit.”

The groups contend that the FHFA’s proposal contradicts the statutory mission of the GSEs, which is to promote liquidity, stability, and affordability in the mortgage market particularly for low- and moderate-income households.

CFA: Policy Is “Blatantly Restrictive” and Deeply Divisive

Sharon Cornelissen, Director of Housing at the Consumer Federation of America, described the proposal as “a blatant example of how this Administration is choosing to restrict access to the American Dream of homeownership.”

“Their vision of American prosperity is not only antagonistic and divisive, but deeply exclusive,” Cornelissen said in a statement. “Many hardworking families who see themselves as middle-class will find themselves shut out under these rules.”

She added that the move could worsen the already dire housing affordability crisis by sidelining families who are creditworthy but need GSE support to purchase homes amid elevated mortgage rates and rising property prices.

Evidence Shows GSE Goals Have Benefited Low-Income Buyers

Research from the Urban Institute and the Congressional Budget Office (CBO) underscores the importance of maintaining robust GSE housing goals. Studies show that Fannie Mae and Freddie Mac’s participation in underserved markets has lowered borrowing costs, expanded credit access, and helped narrow homeownership gaps over the past several decades.

The CBO estimates that the current housing goals framework supports approximately 37,000 additional eligible mortgages annually. In 2025 alone, roughly 750,000 homebuyers are expected to benefit from GSE-backed loans that fall under goal-eligible categories.

“When these goals are weakened, it’s not just numbers on paper that are affected it’s real families losing a pathway to homeownership,” Cornelissen emphasized.

Broader Implications for Housing Equity

Housing experts warn that if the proposed goals take effect as written, they could amplify existing barriers to homeownership for working families, first-time buyers, and minority households. The shift comes at a time when the U.S. faces one of its worst affordability crises in decades, driven by record home prices, limited inventory, and high borrowing costs.

Nationally, home prices are up more than 40% since 2020, while the average 30-year fixed mortgage rate has hovered near 6.3% in recent weeks. As a result, housing affordability remains near multi-decade lows, with many potential buyers priced out of both ownership and rental markets.

“Reducing these targets sends the wrong message,” one housing policy analyst commented. “It signals that affordability and equity are no longer priorities, even as more families struggle to find stable, affordable housing.”

Next Steps and Public Feedback

The FHFA’s proposed 2026–2028 Enterprise Housing Goals are currently open for public comment, and advocacy groups are urging stakeholders to speak out before the agency finalizes the rule.

Consumer and civil rights organizations are also calling on Congress to review the proposal and ensure that Fannie Mae and Freddie Mac remain committed to their statutory mission of expanding access to mortgage credit, rather than narrowing it.

“We should be strengthening, not weakening, the tools that help families build generational wealth through homeownership,” Cornelissen said. “This proposal moves us in the wrong direction at the worst possible time.”

As policymakers debate the future of the GSE housing goals, one thing remains clear: the outcome will have far-reaching implications for affordability, equity, and the stability of the American housing market for years to come. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.