Industry reacts to unannounced moves affecting SPCPs, climate risk, and UDAP guidance
FHFA director Bill Pulte issued multiple directives ordering Fannie Mae and Freddie Mac to roll back several housing-related initiatives implemented under the previous administration.
One of the biggest changes was the order to end SPCPs, programs designed to expand mortgage access to first-time and lower-income homebuyers.
The FHFA also eliminated guidance requiring tenant protections in multifamily loan agreements, such as minimum standards for rental grace periods and lease termination notices. In addition, Pulte rescinded an advisory bulletin that called for the GSEs to manage climate-related risks and a directive related to ensuring necessary property repairs.
Rather than releasing formal statements, Pulte posted photos of printed memos on X (formerly Twitter) to announce the changes.
— Pulte (@pulte) March 25, 2025
A bulletin outlining unfair and deceptive acts or practices (UDAP) enforcement was also withdrawn. The decision to roll back the UDAP advisory drew support from the Mortgage Bankers Association (MBA).
In a statement, MBA president and CEO Bob Broeksmit said the bulletin’s “specific expectations for government-sponsored enterprises Fannie and Freddie to conduct consumer protection oversight of their customers wrongly established the GSEs as compliance regulators.”
Broeksmit also argued the advisory duplicated existing federal and state oversight and would have “negatively impacted consumers and lenders through higher costs.”
But the rollback of SPCPs was met with concern from the National Association of Mortgage Brokers (NAMB), which called the programs “critical tools” for expanding access to affordable homeownership.
NAMB expressed concern about the FHFA’s decision to eliminate SPCPs, which have helped underserved borrowers gain access to housing.
The association pointed out that in 2023, Fannie Mae acquired 921 loans through its HomeReady First SPCP program, delivering more than $5 million in down payment or closing cost assistance. It also purchased another 4,747 loans through lender-sponsored SPCPs, serving a total of 5,668 households. Freddie Mac supported an additional 9,300 households through similar programs last year.
“These programs have served as a critical pathway to affordable homeownership for many first-time and underserved homebuyers, who annually make up approximately one-quarter to one-third of homebuyers,” NAMB stated.
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“NAMB remains steadfast in its commitment to promoting responsible lending and ensuring all Americans have access to mortgage financing,” NAMB president Jim Nabors said. “We welcome the opportunity to engage with FHFA, policymakers and industry partners to discuss constructive paths forward that preserve affordability, foster innovation and support homeownership for those who need it most.”
While Pulte has yet to explain the reasoning behind each individual decision in detail, one of his orders noted that additional tenant protections in multifamily loan agreements would increase compliance burdens for lenders and property owners.
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