navycmdr
8 minutes ago
Freddie Mac Delivers 2024 Equitable Housing Finance Plan
Update to three-year Plan continues progress on equitable and sustainable housing
April 29, 2024 2:15 PM EDT
MCLEAN, Va., April 29, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today published its Equitable Housing Finance Plan and Performance Report for 2023 along with revisions to its 2024 objectives and actions within its three-year Equitable Housing Finance Plan. The Plan is the company’s roadmap to promote sustainable homeownership and rental opportunities for traditionally underserved communities across the nation. Since 2022, Freddie Mac has helped more than 764,000 minority borrowers purchase or refinance a home, accounting for approximately 33 percent of the company’s Single-Family acquisitions.
“Our Equitable Housing Finance Plan is an important component of Freddie Mac’s mission-driven efforts to expand homeownership and improve outcomes for underserved families,” said Pam Perry, Single-Family Vice President of Equitable Housing at Freddie Mac. “In our Single-Family business, our Plan builds on the initiatives that are proven to work – down payment assistance, Special Purpose Credit Programs and consumer education, among other initiatives. While there is more work to be done, we are making steady progress.”
“Freddie Mac’s multifamily efforts are focused on creating and preserving affordable rental housing, driving meaningful advancements for renters and building a more diverse and equitable multifamily finance industry,” said Corey Aber, Multifamily Vice President of Mission, Policy & Strategy at Freddie Mac. “Through this work, we are helping address supply and affordability challenges that acutely impact underserved communities, as well as advance resident-centered practices and increase opportunities for diverse and emerging borrowers and lenders.”
The company today also published a progress report highlighting its accomplishments against the 2023 Plan.
Updates found within this year’s Plan include the following:
Expanding Access to Down Payment Assistance to help first-time homebuyers. In 2023, Freddie Mac launched DPA One®, a free, one-stop shop that helps lenders and loan officers quickly find and match borrowers to down payment assistance programs nationwide. Since its release, over 3,600 loan officers have registered for DPA One, which includes nearly 700 DPA programs covering 49 states and the District of Columbia. Throughout 2024, Freddie Mac will continue to enhance the tool and promote DPA One to industry partners focusing on underserved communities.
Using Special Purpose Credit Programs (SPCP) to make homeownership possible for underserved communities. Under the Plan, Freddie Mac will continue purchasing loans originated through both lender SPCPs and its own SPCP, BorrowSmart AccessSM. BorrowSmart Access provides down payment assistance and financial education to eligible families. In 2023, Freddie Mac purchased more than 9,300 SPCP loans, the majority of which supported homeownership for families of color. In its new Plan, the company committed to purchasing another 10,000 loans originated in 2024.
Expanding initiatives to help renters build credit and achieve homeownership. The company is doing this in two ways: establishing and improving credit scores and considering a history of on-time rent payments in loan purchase decisions. To date, approximately 500,000 renters have enrolled in Freddie Mac’s renter credit building initiative, with more than 300,000 of them increasing their credit score and more than 55,000 participants establishing credit scores for the first time. In 2024, the company will continue to expand this initiative to additional multifamily properties, with a goal of making on-time rent reporting an industry standard.
Freddie Mac also took steps to expand access to credit for historically underserved borrowers by using alternative credit data — including rent payment history — as part of the company’s loan purchase decisions. The company will continue this work in 2024 by exploring additional product enhancements and continuing outreach to borrowers and lenders to increase awareness and increase lender adoption of our digital tools.
Expanding Opportunities for Diverse and Emerging Lenders and Market Participants. To increase diversity across housing finance, Freddie Mac Multifamily launched an emerging correspondent program to help small financial institutions access Freddie Mac capital, including minority depository institutions and Community Development Financial Institutions. In 2023, the company set a new requirement for multifamily lenders to execute at least one correspondent agreement.
To increase opportunities for diverse and emerging multifamily borrowers, Freddie Mac is bridging the relationship and information gaps that can hold emerging industry players back as they seek to grow and access capital. Through a cohort of Diverse and Emerging Sponsors, Freddie Mac Multifamily helps build connections to expand the industry, create relationships and impact the market for years to come.
The company also expanded its Develop the DeveloperSM Academy, a program designed to increase the number of woman and minority-owned developers in underserved areas. In 2023, Freddie Mac trained more than 119 developers who account for 197 new single-family units and 485 new multifamily units currently in development.
Supporting the creation, preservation and rehabilitation of affordable housing by further expanding its use of multifamily Forward Commitments, which are commitments to provide permanent financing for new rental units or substantial rehabilitation of a multifamily property. In 2023, the company committed to funding more than 22,000 units through Forward Commitments, exceeding its goal for the year. In 2024, Freddie Mac will fund an additional 20,000 units through Forward Commitments.
Freddie Mac is also committed to preserving rent levels by providing incentives for multifamily borrowers in exchange for a commitment in the loan agreement to keep rents for a percentage of units affordable over time. This is critically important for working families to ensure rents remain predictable and affordable. In 2023, the company exceeded its goal for preservation with more than 3,200 units. In year three of the Plan, the company has committed to preserving rents for an additional 5,000 units.
To help maintain existing stock of affordable rental housing, Freddie Mac is using its multifamily loan offerings to support the rehabilitation of affordable and workforce rental housing. The company exceeded its goal of 10,000 rehabilitated units and has committed to funding an additional 10,000 units in the 2024 Plan.
Educating the industry and consumers by providing outreach, resources and research to expand housing opportunities, particularly for diverse homebuyers. Efforts in 2023 resulted in more than 500,000 consumers being reached through education and counseling, 70% of whom self-identified as people of color. The company also launched the new Spanish-language version of CreditSmart® Essentials, its comprehensive financial capability curriculum for consumers.
Freddie Mac’s Equitable Housing Finance Plan includes a series of actions to advance equity in both the single-family and multifamily housing markets. The ambitious set of initiatives focuses on five core areas: addressing the homeownership gap, strengthening investment within formerly redlined areas, financing the creation and preservation of affordable housing, increasing opportunities for renters and helping to eliminate disparities among underserved communities. The Plan sets goals, outlines actions to achieve those goals and includes an annual progress report.
For additional information, read the 2024 Plan, 2023 Progress Report, and the company’s fact sheet. Learn more about Freddie Mac’s diversity, equity and inclusion efforts.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube
MEDIA CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
navycmdr
12 minutes ago
FHFA Announces Release of Fair Lending Final Rule
Enterprise Equitable Housing Finance Plan Updates are also published
FOR IMMEDIATE RELEASE - 4/29/2024
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its Fair Lending, Fair Housing, and Equitable Housing Finance Plans Final Rule, together with Fannie Mae and Freddie Mac’s (the Enterprises) Equitable Housing Finance Plan updates for 2024 and Performance Reports for 2023.
The final rule codifies in regulation FHFA’s fair lending oversight requirements for the Enterprises and the Federal Home Loan Banks; the Enterprises’ Equitable Housing Finance Plans (Plans); collection of homeownership education, housing counseling, and language preference information from the Supplemental Consumer Information Form (SCIF); and new Federal Home Loan Bank reporting requirements.
Since the release of their Plans in June 2022, the Enterprises have made significant progress towards ensuring all borrowers and renters have access to fair, sustainable, and equitable housing opportunities. The Enterprises have served close to 2.6 million families under the Plans by educating consumers, reducing closing costs, introducing innovation into underwriting, and combating appraisal bias. The Enterprises also propose new actions for 2024, including a focus on promoting homeownership for first-generation homebuyers.
“As we reflect on the significance of Fair Housing Month, FHFA and its regulated entities will continue to address barriers that make affordable housing difficult to find,” said FHFA Director Sandra L. Thompson. “These initiatives are critically important at a time when housing affordability remains a persistent challenge.”
FHFA will seek public feedback to inform the next three-year Plans through a Request for Input and listening session. FHFA expects to hold a public listening session in June 2024, and anticipates releasing the next Plans in January 2025.
Louie_Louie
3 days ago
Seems there are far fewer posters on the FNMA board🤔, Nothing but mostly antagonists with a few good guys. Being done by design, no doubt. I hope the riff-raff stays off of this board, but rats tend to follow in packs.
No release will be done by this administration, their plate is overflowing with dumpster fires, election fixing, Dimetnia back covering, media avoidance, Free-be give aways and the court cases challenging that , and then there's that nasty inflation and illegals they seem to not understand how to control by stopping needless spending (give aways) and closing a border. So lots of SNAFU's and nobodies home in the White House. I think we (the GSE's) are safe until the next administration, then, if the cards fall right, we could finally make head way out of this nightmare.
JMHO & GLTA
Louie_Louie
4 days ago
As expected. They parrot about not wanting to expose taxpayers to the risk....the risks THAT THEY CREATE by meddling, by mandating their ludicrous affordable housing mandates. So, she is saying as I have long expected....even after releasse the FHFA will have it's grimy hands into dictating housing affordability (give aways) policy, picking winners and losers and the goal of redistributing wealth - socialist agenda. The JPS better wakey, wakey....They will not get anything speccial, as I have stated here multiple times. They will be denied any dividends, along with commons holders for years after release. Commons will have the benefit of of share price increase that will work in their favor much more than JPS, for a time. But, even commons will be limited in price increase until dividends get reinstated. I'm betting they have concocted a release decree that stipulates an on going FHFA involvement for years, and with that, an imposibility for shareholders to vote a new BOD, since we all will still be minor holders of shares (20.1%). Why? because they can concoct what ever their dear ittle criminal hearts want to, they own the courts, as we've found out.
If the GSE's are not set completely free it will inhibit any type of capital raise drastically unless the FHFA sells off something of THEIR SENIORS OR WARRANTS to lessen their control, but they'll never sell enough of any of their illegal gains to lose a controlling majority stake, much like what Buffet does. All while the FHFA leech stays fastened in place so they can grow their head count.
trunkmonk
5 days ago
My man Rodney post from udder board. any FHFA with any leadership ability and honest professional goals can eliminate SP discussion forever.
https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
RESTRICTION ON CAPITAL DISTRIBUTIONS.— page 2731
‘‘(1) IN GENERAL.—A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized. The exception.
Quote: “Page 2732
EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.
NOTE: REPURCHASE, REDEEM, RETIRE...
WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.
navycmdr
6 days ago
Biden administration issues final flood rule for federal-backed housing
Should help lower skyrocketing home insurance costs 🙃— Tim Rood (@tim_rood_) April 23, 2024
HUD Sets New Flood-Related Requirements
bivey@imfpubs.com
The Department of Housing and Urban Development issued a final rule Monday aimed at protecting borrowers and the federal government from flood risk. The final rule includes changes to the Federal Flood Risk Management Standard that applies to HUD-financed properties, including some single-family FHA mortgages.
For example, the rule includes a new elevation standard for new-construction single-family properties that will receive an FHA mortgage. In certain flood zones, the property must be at least two feet above the base flood elevation. The previous standard allowed the property to be at the base flood elevation.
The Mortgage Bankers Association raised concerns about the new requirements.
“While MBA appreciates the eight-month implementation timeline, we remain deeply concerned that expanding floodplain areas, implementing new elevation requirements for some new single-family and multifamily homes, and requiring higher levels of flood insurance will make FHA financing more expensive and less competitive,” said Bob Broeksmit, president and CEO of the MBA.
Biden administration issues final flood rule for federal-backed housing
BY: ZACK COLMAN | 04/22/2024 11:56 AM EDT
The Biden administration issued a final flood protection rule Monday that will bring sweeping changes in the construction and siting of federally backed housing.
The Department of Housing and Urban Development's federal flood risk management standard, which it published Monday in the Federal Register, will expand the areas designated as flood plains, which will apply rules for elevating new multifamily homes and substantially rebuilt multifamily residences, while also raising the minimum height for those structures. It also updated Federal Housing Authority minimum standards for elevation for new construction backed by a HUD-insured single-family home loan.
Climate change has driven sea-level rise, helped make hurricanes more powerful and worsened torrential rainfall events that have all exacerbated flooding, which causes more property damage than any other natural disaster.
The HUD rule aims to limit property damage from flooding by imposing stricter requirements on new HUD-backed multifamily construction and for using federal dollars to substantially rehabilitate HUD properties in the special flood hazard area. Those areas are often referred to as the 100-year floodplain, which means they have a 1 percent chance of flooding any year over a 30-year horizon.
...
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Ace Trader
1 day ago
QueenVic
4 days ago
Hot Features
Premium
