The plans were developed in response to a request last fall from the Federal Housing Finance Agency, which regulates Fannie and Freddie, to address discrimination in access to homeownership. The plans represent Fannie and Freddie’s commitment to “sustainable approaches that will meaningfully address the racial and ethnic disparities in homeownership and wealth that have persisted for generations,” said Sandra L. Thompson, acting director of FHFA. Fannie and Freddie do not issue loans, rather they purchase loans from lenders to hold, sell or repackage as investments. Two plans, similar goalsFannie Mae’s plan offers several pilot programs aimed at removing unnecessary obstacles to first-time homeownership and access to affordable, quality rental housing. In addition, it aims to address the racial homeownership gap by using a Special Purpose Credit Program, or SPCP, to purchase loans originated through lender programs that help expand homeownership in underserved communities.

Source: CNN June 08, 2022 20:28 UTC