MBA Statement on FHFA’s Announcement of the GSEs’ Equitable Housing Finance Plans
Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement on FHFA’s announcement regarding the equitable housing finance plans developed by Fannie Mae and Freddie Mac (the GSEs):
“MBA commends FHFA and the GSEs’ proactive efforts to develop targeted, actionable plans to close the nation’s long-standing racial homeownership gap and to make affordable rental housing available on a more equitable basis.
“The GSEs’ plans – focused on a typical consumer’s housing lifecycle – should allow for increased opportunities for minority households to secure affordable rental housing, prepare for homeownership, and obtain access to safe and affordable mortgage credit. While the plans are targeted to Black and Hispanic borrowers, all low- and moderate-income borrowers and communities should benefit.
“The path to sustainable homeownership often starts with renting. MBA appreciates the GSEs’ emphasis on enhancing existing products and developing offerings to encourage the rehabilitation and creation of new multifamily rental housing. Addressing stubbornly low rental housing supply levels, and helping renters manage security deposits and build a payment history, are key areas to address that can facilitate future homeownership.
“MBA is also pleased to see the commitment to exploring the expansive use of Special Purpose Credit Programs (SPCPs) to increase access to mortgage credit to traditionally underserved communities. MBA has been at the forefront of encouraging regulators, the GSEs, and lenders to facilitate the creation of effective SPCPs. The use of SPCPs will be particularly important for core mission borrowers, especially minority groups who may not have generational wealth to use to save for a down payment.
“Close partnership with FHFA, the GSEs, HUD, civil rights groups and other key stakeholders will help to ensure the equitable housing finance plans are innovative, successful, flexible to improvements, and achieve the core mission of sustainable access to homeownership, while maintaining the safety and soundness at the GSEs. Furthermore, we appreciate the promise for transparency on pilot programs to ensure that they have clearly defined objectives, are time-delimited, and – if deemed successful – eventually made available to all eligible lenders regardless of size or business model.
“MBA looks forward to industry collaboration on the ideas and programs in these plans.”