Latest developments based on long-term endeavor to promote fairness and impartiality in the housing sector
Fannie Mae is stepping up its game with its annual update to the Equitable Housing Finance Plan.
The plan is focused on knocking down barriers faced by underserved communities to facilitate equal and sustainable access to homeownership and affordable rental housing across America in a safe and sound manner.
The Equitable Housing Finance Plan for 2023 has two objectives: reduce upfront rental and homeownership costs and improve the chances for long-term success for underserved borrowers and renters through education and counseling.
To achieve these objectives, Fannie Mae has come up with 25 separate actions, including down payment assistance programs, mortgage underwriting innovations, and special purpose credit programs to help first-time homebuyers.
It is also supporting five 2022 Innovation Challenge winners who are building local solutions to increase affordable housing supply and assist people with credit and housing access.
Fannie Mae will use its role in the secondary mortgage market to expand access for underserved borrowers through its mortgage-backed securities activities.
Additionally, it is expanding financial and housing counseling and consumer education to empower more people to both achieve and maintain housing stability.
For underserved communities
Katrina Jones, vice president of racial equity strategy & impact, acknowledged the significant strides made since the launch of its plan in 2022 to address the historical obstacles faced by underserved communities, especially for Black and Latino individuals.
She acknowledged the current challenges of insufficient affordable housing and high housing costs, which make it even more challenging to overcome housing barriers.
“Since the launch of our plan in 2022, we have made considerable progress in identifying meaningful ways to address historical challenges faced by underserved communities, particularly for Black and Latino people,” she said.
Fannie Mae’s Equitable Housing Finance Plan is based on its Consumer Housing Journey, which is a consumer-focused, evidence-based framework that helps identify housing barriers for individuals, especially Black and Latino consumers, at each stage of their lives.
