The Federal Housing Finance Agency (FHFA) is looking to withdraw a 2024 final rule, 12 CFR Part 1293, a rule that established requirements for fair lending oversight of regulated entities, equitable housing finance planning by the Federal Home Loan Banks, Fannie Mae, and Freddie Mac, and certain data collection and reporting by the regulated entities.
According to the proposed rule, the FHFA reviewed existing regulations with the goal of improving prudence and economic responsibility in the expenditure of funds, from both public and private sources, alleviating unnecessary regulatory burdens, avoiding confusion in roles and responsibilities with other agencies having primary jurisdiction, and avoiding duplicative statements of FHFA authorities.
The FHFA published its final rule on Fair Lending, Fair Housing, Equitable Housing Finance Plans in May 2024, and the Agency has determined the final rule has an estimated annual impact on the economy in excess of $100 million. FHFA was not required by statute to publish the regulation.
On February 19, 2025, President Trump issued Executive Order 14219, a measure under which federal agencies are required to review all regulations subject to their jurisdiction and repeal, as appropriate, regulations inconsistent with law or policy. According to the FHFA, administration policy includes the policy to be “prudent and financially responsible in the expenditure of funds, from both public and private sources, and to alleviate unnecessary regulatory burdens.” Administration policies also include, under Executive Order 14173, protecting the civil rights of all Americans, terminating discriminatory and illegal preferences, programs, and activities, and combating illegal private-sector diversity, equity, and inclusion preferences, policies, programs, and activities; and terminating to all equity programs or action plans.
The FHFA believes that repeal of Part 1293 will align with one or more of these policies.
Comments on the proposed repeal must be submitted to FHFA by September 26, 2025.
Click here for more on the Fair Lending, Fair Housing, and Equitable Housing Finance Plans, a proposed rule by the Federal Housing Finance Agency.
