On Friday, June 8th, NAR submitted a comment letter to the FHFA in response to the regulator’s request for input on proposed amendments to the Federal Home Loan Banks’ (FHLB) affordable housing programs (AHPs).
The home loan banks set aside 10% of their earnings for AHPs that support either homeownership or rentership by direct grant or through construction/renovation of stock.
NAR’s letter focuses on three points:
- To the extent that the proposed amendments to the AHPs reduce regulatory burden for banks making home loans to credit worthy borrowers, NAR supports
- NAR applauds the proposed increase in the share of AHP funds designated for homeownership from 35 percent to 40 percent
- Given the current housing shortage, the FHFA should consider making the construction of owner-occupied homes an additional priority for use of AHP funds.