FHFA plans to eliminate GSEs’ equitable housing finance plans

The Federal Housing Finance Agency (FHFA) is proposing to repeal its fair lending, fair housing and equitable housing finance rule, arguing that the regulation is duplicative that the repeal aligns with prior executive orders aimed at streamlining agency functions.

The rule, finalized in May 2024 under the Biden administration, required Fannie Mae and Freddie Mac to develop and report on Equitable Housing Finance Plans (EHFPs) alongside other fair housing provisions.

In its repeal notice through the Federal Register, the FHFA emphasized that the core statutes underpinning the rule — the Fair Housing Act, the Equal Credit Opportunity Act and provisions governing deceptive practices — are already administered by the U.S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau and the Federal Trade Commission, respectively.

According to FHFA, this change would also reduce administrative expenses for the enterprises, including costs related to staffing and outreach.

“Duplicative overlap in regulation and statute throughout agency functions is costly for the government,” the agency wrote. “Repeal would result in savings.”

The proposed repeal was published in the Federal Register on Monday, commencing a formal public comment period until Sept. 26, 2025.

The rule could also formalize a post made earlier this year on social media platform X by FHFA Director Bill Pulte, when he announced the end of the special-purpose credit programs offered by the GSEs. These programs were part of the 2022–2024 enterprise plans.