The Digital Mortgage Shift: FHFA and GSEs' 2025 Strategy
In 2025, the Federal Housing Finance Agency (FHFA) introduced pivotal changes impacting Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs), particularly in affordable housing goals and electronic mortgage (eMortgage) processes. Here's an overview of the key developments:
📌 1. Updated Affordable Housing Goals for 2025–2027
In December 2024, the FHFA finalized a rule establishing new affordable housing benchmarks for the GSEs for 2025 through 2027. These goals aim to enhance access to homeownership and rental housing for low- and moderate-income families.
Single-Family Housing Goals:
Low-Income Home Purchase Goal: 25% of purchases
Very Low-Income Home Purchase Goal: 6%
Minority Census Tracts Home Purchase Subgoal: 12%
Low-Income Census Tracts Home Purchase Subgoal: 4%
Low-Income Refinance Goal: 26%
Multifamily Housing Goals:
Low-Income Goal: 61% of units
Very Low-Income Goal: 14% of units
Low-Income Small (5–50 unit) Subgoal: 2% of units
These benchmarks are designed to ensure the GSEs actively support affordable housing initiatives across various communities.
📌 2. Enhancements to eMortgage Processes
While specific details on eMortgage guideline changes in 2025 are limited, the FHFA and GSEs have continued to promote the adoption of electronic mortgage processes to increase efficiency and reduce costs. In May 2025, Fannie Mae implemented updates to its Desktop Underwriter® (DU®) Version 12.0, which included technological enhancements aimed at streamlining loan processing.
These updates are part of ongoing efforts to modernize mortgage origination and underwriting, facilitating a more seamless experience for lenders and borrowers alike.
📌 3. Adjustments to Conforming Loan Limits
The FHFA announced that, effective in 2025, the conforming loan limit for one-unit properties in most of the United States would increase to $806,500, a 5.2% rise from the previous year. This adjustment reflects changes in the average U.S. home price and aims to ensure that the GSEs can continue to support a broad segment of the mortgage market.
📌 4. Emphasis on Mission-Driven Multifamily Lending
Under the 2025 Scorecard, the FHFA set a $73 billion cap on the multifamily loan purchases for each GSE, totaling $146 billion combined. Importantly, at least 50% of these multifamily loan purchases are required to be mission-driven, focusing on affordable and underserved market segments.
✅ Conclusion
The changes implemented by the FHFA in 2025 reflect a continued commitment to promoting affordable housing and modernizing mortgage processes. By setting clear benchmarks for the GSEs and encouraging the adoption of electronic mortgage technologies, the agency aims to enhance efficiency, support underserved communities, and ensure the stability of the housing finance system.
