Efforts intensified to assist first-time and first-generation homebuyers
Government-sponsored enterprises Fannie Mae and Freddie Mac have updated their Equitable Housing Finance Plan to double down on sustainable homeownership and rental opportunities.
The revised plan from Fannie Mae introduces two new initiatives: expanded pre-purchase counseling for first-time homebuyers and a universal definition for first-generation homebuyers to address disparities correlated with lack of generational wealth.
"We have continued to build the infrastructure for a housing ecosystem that is fair and sustainable for all consumers," said Katrina Jones, vice president of housing equity strategy and impact at Fannie Mae. "The housing environment today underscores the need to continue innovating and working together to ensure access to affordable housing opportunities is available to everyone."
Freddie Mac has also updated its objectives for 2024, focusing on expanding homeownership and improving living conditions for underserved families. This includes broadening access to down payment assistance and leveraging renters' payment histories to enhance their credit profiles, according to the GSE’s news release.
“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 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,” added Corey Aber, vice president of mission, policy and strategy at Freddie Mac Multifamily. “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.”
Among the achievements from 2023, Freddie Mac launched DPA One, a platform that helps lenders match borrowers with suitable down payment assistance programs. Last year, the company also supported homeownership for families of color by purchasing over 9,300 loans through Special Purpose Credit Programs. Moreover, Freddie Mac's renter credit-building initiative saw about 500,000 renters improve or establish their credit scores for the first time.
Read next: Credit scores should include rental history says Urban Institute
For 2024, Freddie Mac plans to enhance tools like DPA One and expand credit-building opportunities for renters. The company aims to standardize on-time rent reporting across the industry and is exploring additional ways to facilitate credit access using alternative data.
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