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GSEs announce Equitable Housing Finance Plans
Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs), announced Wednesday their Equitable Housing Finance Plans that identify and address barriers to sustainable housing opportunities and break down goals and action plans to advance equity in housing finance for the next three years. Notably, Freddie Mac's plan includes NAFCU-requested increases in capital for community development financial institutions (CDFIs) and minority depository institutions (MDIs).
NAFCU has strongly advocated on behalf of CDFIs and MDIs and discussed related topics during a meeting with Federal Housing Finance Agency (FHFA) Director Sandra Thompson in February. In addition, the association has previously called for the FHFA to consider pilot programs that aide the GSEs in increasing opportunities for very-low, low-, and moderate-income individuals to purchase homes.
The FHFA directed the GSEs to develop the Equitable Housing Finance Plans in September of 2021 with the goal of these plans serving as a meaningful first step toward empowering communities with reduced financial education, affordable multifamily housing, and increased tenant protections. In the announcement, the FHFA noted that in order for these plans to be successful, close partnerships with industry participants and the public are necessary.
In addition, each activity laid out in the GSEs' plans will be subject to the FHFA safety and soundness review process and must be approved by the FHFA.
The FHFA also announced the creation of a pilot transparency framework for the GSEs to accompany these plans. The framework requires the GSEs to publish and maintain a list of pilots on their websites that is refreshed biannually.
View the plans from both Fannie Mae and Freddie Mac for more information. NAFCU will continue to work with the FHFA and GSEs to ensure a housing finance system that promotes equity and allows credit unions to provide exemplary mortgage and lending services to consumers.