Consumer and Civil Rights Groups Warn FHFA’s 2026–2028 Housing Goals Could Exacerbate Affordability
A coalition of consumer, housing, and civil rights organizations is warning that the Federal Housing Finance Agency’s (FHFA) proposed 2026–2028 housing goals could make homeownership even harder to achieve for low- and moderate-income families. In a joint letter led by the Consumer Federation of America (CFA) and signed by 27 advocacy groups, the organizations argue that the FHFA’s plan to reduce GSE home purchase targets for low- and very-low-income borrowers could shut out up to 177,000 families from securing Fannie Mae and Freddie Mac–backed mortgages over the next three years.
At the center of the controversy is the FHFA’s proposal to merge two long-standing subgoals—one focused on low-income census tracts and another on minority census tracts—into a single, broader benchmark. Advocates say this move would weaken accountability, dilute focus on minority communities, and roll back decades of progress toward fair housing access. “This proposal undermines decades of progress,” the coalition wrote, emphasizing that the GSEs are meant to lead—not lag—the industry in expanding credit access.
CFA’s housing director Sharon Cornelissen called the proposal “blatantly restrictive” and said it would worsen the affordability crisis by excluding families who are creditworthy but struggling with today’s high mortgage rates and record home prices. Research from the Urban Institute and the Congressional Budget Office supports the advocates’ position, showing that strong GSE housing goals have historically helped lower borrowing costs and expand credit in underserved areas.
Housing experts warn that adopting these weaker targets could deepen racial and economic inequities at a time when the U.S. housing market faces extreme affordability pressures. National home prices are up over 40% since 2020, while mortgage rates hover near 6.3%, leaving many families priced out of ownership.
The FHFA’s proposal remains open for public comment, and advocacy groups are calling on Congress and policymakers to intervene. “We should be strengthening, not weakening, the tools that help families build generational wealth through homeownership,” Cornelissen said. With affordability near historic lows, the outcome of this debate could shape the future of housing equity and access for years to come.
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