FHFA Proposes Repeal of Controversial Fair Housing Rule: Comment Deadline This Month
The Federal Housing Finance Agency (FHFA) appears to be moving to repeal a Biden-era fair housing initiative. The FHFA recently proposed repeal of the controversial Equitable Housing Finance Plan (EHFP) Rule, which would require Fannie Mae and Freddie Mac (the GSEs) to submit annual plans aimed at expanding fair and sustainable access to housing. The mortgage industry should be watching.
What Is the EHFP Rule?
Introduced in 2022, the EHFP Rule was designed to embed equity considerations directly into GSE business planning. Among other things, the rule required the GSEs to:
Identify supposed systemic barriers facing underserved borrowers and communities
Establish goals and timelines for addressing those barriers
Develop programs, partnerships, and products, like special-purpose credit programs, to support so-called equitable housing access
Regularly report progress to FHFA across a three-year planning cycle
In short, the rule attempts to create a formal mechanism to drive supposed transparency and accountability in “equity” strategies for the GSEs.
Why FHFA Wants to Roll It Back
The agency says the EHFP Rule is “unnecessary and redundant,” arguing that existing mandates already provide sufficient oversight and direction. FHFA also flagged compliance costs and regulatory burden as reasons for repeal, stating that supervision (rather than additional regulations) should guide equity efforts going forward.
Crucially, the repeal is framed as part of the new administration’s broader policy realignment, including Executive Order 14151, which seeks to scale back federal diversity, equity, and inclusion (DEI) programs – which themselves are seen by some as raising serious illegal discrimination issues.
What Repeal Could Mean for the GSEs and You
If the rule is repealed, the GSEs would no longer be required to submit forward-looking equity plans. While FHFA insists it will continue to enforce fair lending laws, the removal of the EHFP framework could have notable downstream effects for mortgage market participants.
What Mortgage Companies Should Do Now
With public comments due September 26, 2025, mortgage lenders and servicers have a window here to weigh in on these issues. This is your chance to shape how fair lending and “equity” issues are approached going forward.
Need Help Drafting a Comment?
Our team regularly advises mortgage lenders and servicers on Fair Lending and GSE regulatory issues. If you would like assistance preparing a comment or evaluating the impact of the repeal, contact Troy Garris at troy@garrishorn.com.