It wants to increase oversight of Fannie Mae and Freddie Mac’s fair housing and lending compliance
The Federal Housing Finance Agency (FHFA) is looking to formalize many of its existing fair lending practices and programs for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
The agency has announced that it is seeking public input on a proposed rule that would codify its requirements for the enterprises to collect and report homeownership education, housing counseling, and language preference information from the Supplemental Consumer Information Form (SCIF).
FHFA said that the rule would also expand requirements for Fannie Mae and Freddie Mac in fair lending compliance and provide greater oversight and transparency regarding the Equitable Housing Finance Plans. FHFA invites comments on the proposed rule within 60 days of its publication in the Federal Register.
“Challenges and barriers continue to limit sustainable housing opportunities for minority, low-income, and senior borrowers, as well as families living in rural areas and on tribal land,” said FHFA director Sandra Thompson. “The proposed rule will help FHFA ensure that our regulated entities operate in a safe and sound manner as they comply with fair housing laws and serve the public interest.”
Last year, the agency released the inaugural Equitable Housing Finance Plans designed to promote the enterprises’ safety and soundness and foster equitable access to affordable and sustainable housing. FHFA also mandated Fannie Mae and Freddie Mac to require lenders to use the SCIF as part of the application process for loans sold to the enterprises. Lenders were required to adopt these changes on or after March 1, 2023.
Want to make your inbox flourish with mortgage-focused news content? Get exclusive interviews, breaking news, industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
