Share
© ridvan_celik - iStock / Getty Images Plus
New plans issued by the Federal Housing Finance Agency this week for Fannie Mae and Freddie Mac, which it oversees, set out to provide equitable access to affordable and sustainable housing.
“The Equitable Housing Finance Plans represent a commitment to sustainable approaches that will meaningfully address the racial and ethnic disparities in homeownership and wealth that have persisted for generations,” said Sandra L. Thompson, the FHFA’s acting director. “We look forward to working with the enterprises, lenders, and other housing industry participants to further develop the ideas described in these plans.”
The National Association of REALTORS® welcomed the FHFA’s announcement and its “long-term plan to bring historically underserved groups into homeownership through innovative equity solutions,” NAR President Leslie Rouda Smith said in a statement. “The homeownership gap is a result of more than a century of problematic practices and will take years of refinement, application and tenacity to resolve. NAR looks forward to these plans playing a key role in closing the homeownership gap.”
The plans cover the years 2022 to 2024 and will be updated annually. It addresses barriers experienced by renters, aspiring home buyers and current homeowners, particularly in Black and Latino communities. The plan outlines initiatives like:
- Consumer education initiatives for renters and homeowners;
- Credit reporting to help tenants build credit profiles and improve access to financial services;
- Expanding counseling services to support housing stability;
- Deploying technology to improve access to sustainable credit and fair home appraisals;
- Special-purpose credit programs to address barriers to sustainable homeownership.
As part of a pilot program, the FHFA also is requiring Fannie Mae and Freddie Mac to publish and maintain a list of test-and-learn activities on their public websites. Those efforts will serve to document accountability and help determine whether activities are working to address disparities.
View the plans: