FHFA Announces Equitable Housing Finance Plans for GSEs
The Federal Housing Finance Agency announced Tuesday that Fannie Mae and Freddie Mac will submit Equitable Housing Finance Plans by the end of 2021.
These plans, updated annually, will identify and address barriers to sustainable housing opportunities, including the Enterprises’ goals and action plans to advance equity in housing finance for the next three years. FHFA also will require the Enterprises to submit annual progress reports on the actions undertaken during the prior year to implement their plans.
“For generations, discriminatory practices like redlining have prevented communities of color from building wealth through homeownership,” said FHFA Acting Director Sandra L. Thompson. “By identifying the barriers to equitable and sustainable housing finance opportunities and setting goals for addressing those barriers, the Enterprises, consistent with safety and soundness, can responsibly reduce the racial and ethnic disparities in homeownership and wealth that still exist today.”
Mortgage Bankers Association President & CEO Robert Broeksmit, CMB, issued a statement of support.
“MBA commends FHFA for engaging the GSEs in the development of comprehensive business plans to advance equity in housing,” Broeksmit said. “We have championed efforts to reduce the racial homeownership gap, and we will be releasing our policy recommendations in the coming weeks, including areas where the GSEs can play a critical role. We look forward to continuing to work with both FHFA and HUD, as well as Congress and other stakeholders, on policies that will promote fair, equitable, and sustainable access to homeownership for all Americans who aspire to it.”
Under the recently signed Memorandum of Understanding between FHFA and HUD regarding fair housing and fair lending coordination, HUD provided insight and expertise to FHFA regarding this equitable housing finance initiative.
“This is a major step in bringing more equity to the housing finance industry,” said HUD Secretary Marcia L. Fudge. “HUD’s recent collaborations with FHFA are crucial actions that will advance fair housing and fair lending for all Americans and expand access to opportunities for homeownership and the generational wealth building that can come from it. HUD is pleased to work alongside FHFA and others on a comprehensive approach to building a more equitable housing finance system.”
FHFA has a statutory duty to ensure that the Enterprises operate in a manner consistent with safety and soundness and the public interest. FHFA is issuing a Request for Input that seeks public input until October 25, to aid the Enterprises in preparing their first plans and to aid FHFA in overseeing the plans. FHFA will also host a public listening session on September 28, to allow for additional public input.
