FHFA ups the ante on equitable housing goals

The Federal Housing Finance Agency has expanded the scope of roadmaps government-sponsored enterprises have drawn up with the aim of closing the racial homeownership gap.

A Latino Housing Journey component and more support for modular home construction are examples of new additions. There's also increased emphasis on loss mitigation and special purpose credit programs following heightened calls for greater participation in the latter.

While some lenders like Rocket Mortgage have set up and participated in SPCPs,  Lydia Pope, president of the National Association of Real Estate Brokers, recently expressed concern about a dearth of participation more broadly within the industry.

"It's disappointing that more mortgage lenders are not using these programs to increase homeownership," said Lydia Pope, president of the association, in a press release. NAREB is the oldest minority trade group in the United States.

In regards to goals around providing assistance to distressed borrowers, the FHFA said it's putting an "enhanced focus on ensuring existing borrowers receive fair loss mitigation support and outcomes through monitoring and developing strategies to close any gaps."

The plans that government-sponsored enterprises Fannie Mae and Freddie Mac initially released last year are set to unfold over the next few years, and the most recent updates follow a review of 2022 performance. Fannie and Freddie buy and back a significant number of mortgages originated in the United States.

"Every step taken towards bringing more equity into the housing finance system is a step in the right direction," said FHFA Director Sandra Thompson in a press release. "In 2022, the enterprises helped more than 834,000 households through various actions outlined in their Equitable Housing Finance Plans."