The Federal Housing Finance Agency (FHFA) has issued a final rule repealing the regulation that codified the Equitable Housing Finance Plans and specific fair lending oversight frameworks for Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The rule, published in the Federal Register on Friday, eliminates 12 CFR Part 1293, effective March 9, 2026. In the filing, the FHFA stated the regulation was “unnecessary” and potentially inconsistent with the current administration’s policies on deregulation and government efficiency, specifically citing Executive Order 14219 and others, which ask federal agencies to pursue deregulation and unwind Biden-era initiatives focused on diversity and inclusion.
The regulation in question was originally adopted in May 2024, during President Joe Biden’s term, to formalize fair housing oversight and require government-sponsored enterprises Fannie Mae and Freddie Mac to submit triennial equitable housing plans to rectify racial inequality in homeownership levels.
These plans outlined actions Fannie and Freddie would take to address barriers to sustainable housing opportunities faced by underserved communities. The regulation also established requirements for collecting borrower language preference and housing counseling information.
The repeal follows a proposal introduced in July 2025. According to the Federal Register document, the FHFA determined that the public purposes of the regulated entities — promoting access to credit in underserved markets — can be “accomplished effectively” through the administration of existing statutory mandates, such as the affordable housing goals and the “Duty to Serve” requirements.
“The repeal of unnecessary FHFA requirements for the regulated entities to comply with specified laws administered by other agencies is not intended to affect the applicability, effectiveness, or enforcement of those laws,” the FHFA wrote in its final rule.
During the comment period, some groups and individuals raised concerns over the proposed repeal. For example, the Underserved Mortgage Markets Coalition, a consortium of over 40 groups, submitted a letter requesting the rules stay intact, reasoning that Fannie and Freddie have an obligation to ensure equal housing access due to the outsized impact the government-sponsored mortgage investors have on the housing market.
In contrast, other groups supported the rule reversal. The Housing Policy Council (HPC), for instance, submitted a comment supporting the repeal, stating it had questioned the need for such a regulation since its adoption. The HPC viewed the regulation as redundant given existing rules governing the government’s commitment to equality in housing.
The FHFA addressed critics’ concerns raised during the comment period, asserting that its authority to incorporate fair lending performance into ratings is “derived directly from the Safety and Soundness Act” and exists independently of Part 1293. The agency noted that prior to the adoption of the regulation in 2024, it had already incorporated fair lending compliance into the management component of its rating system and will retain the authority to do so.
The final rule notes that the repeal does not preclude Fannie Mae and Freddie Mac from pursuing initiatives such as cash flow underwriting, expanding access to affordable rental housing and supporting natural disaster rebuilding. However, these activities will no longer be governed by the specific regulatory structure of the companies’ Equitable Housing Finance Plans.
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