The Federal Housing Finance Agency is not making changes to its proposed repeal of the Biden Administration's Fair Lending, Fair Housing and Equitable Housing Finance Plans regulation it first published for comment in July.
The rule is also identified as part 1293 and the current version was
The final rule is set to be published in the Federal Register on Feb. 6 and go into effect 30 days later. A PDF of the rule is listed as unpublished.
"Repeal does not change statutory requirements for the regulated entities to comply with applicable fair lending and fair housing laws…and does not change Enterprise or Bank obligations to meet statutory and regulatory affordable housing goals, the Enterprises' statutory duty to serve underserved communities, or the Enterprises' statutory obligations to provide funding to the affordable housing funds," the FHFA said in the final rule.
The public comments on eliminating Biden-era updates
During the process, the FHFA received 26 comments, 25 of which are published on its website. "Almost all comments that were opposed to repeal addressed the desirability of part 1293, but did not address the FHFA's reasons for repeal," the commentary in the final rule stated.
Among those arguing against the proposal was the National Community Reinvestment Coalition, whose letter had a number of signatories, including the National Fair Housing Alliance.
"Eliminating these provisions impedes federal agencies' ability to curtail discrimination and exploitation, and makes it more difficult to measure the effectiveness and impact of Fannie Mae, Freddie Mac and the Federal Home Loan Banks," its letter stated.
The NFHA filed its own letter, whose signatories included NCRC, the Center for Responsible Lending and the NAACP Legal Defense and Education Fund, which called the 2024 fair lending rule "a common sense legal framework."
CRL provided a statement prior to the rule's formal publication.
"Repealing these rules contradicts the President's mandate to address the nation's affordable housing crisis," said Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending. "Under the guise of reducing regulatory burdens for lenders, FHFA will make it harder for people — regardless of their race, gender, handicap or any other protected characteristic — to buy homes and build wealth."
In its comments on the letters in opposition, FHFA said it appreciated "the thoughtful input…particularly those who emphasized the societal benefits."
The agency stated it is committed to promoting fair access to credit and housing finance, but the part 1293 repeal aligns with the Trump Administration's goals of restoring regulatory clarity, reinforcing statutory alignment and strengthening the effectiveness of its supervisory framework.
Comments that supported the repeal
Filing a comment in support of repeal was the American Land Title Association, which said it "opened the door to misguided initiatives" such as
The U.S. Mortgage Insurers letter said "we support actions to ensure resources are focused on programs and initiatives that are expressly sanctioned by the GSE congressional charters and that prudently serve borrowers nationwide."
The Council of Federal Home Loan Banks, which represents the other 11 institutions outside of Fannie Mae and Freddie Mac regulated by the FHFA, also wrote in support of repeal.
"[T]he Council agrees that the Regulation imposes duplicative requirements that increase complexity and cost without delivering commensurate benefits," its letter said.
The final rule noted that the regulated entities remain subject to the Fair Housing Act and the Equal Credit Opportunity Act and that repeal will eliminate "duplicative statements of FHFA's authority."
Are the FHLBanks next?
The FHFA did hint in the commentary at possible rule-making involving the FHLBanks.
"To strengthen oversight of Bank community support activities, the Agency is considering revisions to the existing Community Support Program framework, which allows FHFA to evaluate the Banks' contributions to affordable housing and community development in a manner that is consistent, transparent, and enforceable," the FHFA said in its commentary for this rule.
Since 1990, the 11 banks collectively have delivered more than $9 billion in affordable housing program funding, noted Ryan Donovan, president and CEO of the Council of FHLBanks, in a statement in response to the FHFA rule. In 2024, they contributed $528 million in voluntary funding to affordable housing and economic development.
"The Federal Home Loan Bank System has a strong track record of support for local communities, and we appreciate Director Pulte's continued focus on this important issue," Donovan said. "Through their core mission of providing liquidity to their members – the vast majority of which are community lenders – and through their AHP and voluntary funding initiatives, the FHLBanks are critical partners for local lenders that anchor communities across the nation."
The Banks have
