The Federal Housing Finance Agency (FHFA) has proposed a significant rule to fortify and formalize equitable housing finance plans from mortgage giants like Fannie Mae and Freddie Mac. These plans, along with additional measures, aim to combat racial disparities in homeownership and enhance opportunities for affordable rental housing.
Under this rule, Fannie Mae and Freddie Mac’s fair lending, fair housing functions, and equitable housing finance plans will become mandatory, backed by improved oversight and enforcement.
These initiatives address decades of racially biased policies that hindered Black homeownership. Despite the Fair Housing Act of 1968, the racial homeownership gap persists, nearing 30% today.
FHFA’s comprehensive plan includes:
- Ensuring equitable loss mitigation support for current borrowers.
- Offering financial coaching for credit and savings building.
- Backing locally-owned construction facilities in minority communities.
- Expanding Special Purpose Credit Programs for underserved communities.
We at Neighborhood Housing Services of Southern Nevada applaud FHFA’s commitment to change, fairness, and equality, supporting the American Dream of homeownership for all.