However, experts are split on how such changes may affect taxpayer protections and appropriate borrower access
A Zillow survey of economists and real estate experts has revealed that a majority of respondents believe a change in the affordable-housing goals of Fannie Mae and Freddie Mac will reduce lending to underserved borrowers.
In ongoing GSE reform efforts, a draft Senate bill has proposed to replace established affordable-housing goals with a new fee-based incentive system. The reform debate has started to focus on the GSEs’ mandate under the Federal Housing Finance Agency Duty to Serve Program and single-family and multifamily affordable-housing goals to buy a set amount of mortgages held by lower-income families and/or originated in minority, low-income, or underserved communities.
Half of survey respondents expected lending to underserved borrowers to decline if the goals were eliminated. A third expected lending to increase or remain unchanged, while the rest were unsure. Meanwhile, the respondents were split when it came to how reform would affect targeting of borrowers or taxpayer protections.
Supporters of a change in the affordable housing goals say it will encourage lending to underserved borrowers given larger subsidies than those in the current system. Those against the change raise fears that it would create uncertainty about the level of resources dedicated to affordable housing.
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