NAR submitted its response to the FHFA’s request for input on the Enterprises Equitable Housing Finance plans.
The FHFA has directed Fannie Mae and Freddie Mac to develop long-term plans that will help to flesh out their goals and action plans for improving equity in the conventional market for housing finance. These plans would be reviewed annual.
Improving equity helps to improve access and affordability of mortgage credit for all credit worthy borrowers. To this end, NAR supports the FHFA’s efforts and outlined a number of NAR’s policies that support more equitable financing in both the opportunity to purchase a home and the ability to stay in a home.
NAR's suggestions include:
- Introducing homeownership counseling,
- Expanding down payment assistance,
- Solutions to support homebuyers with student debt,
- Resuming pilot programs to develop new products and services,
- Sticking to sustainable mortgages,
- Right-sizing capital rules and appropriate pricing,
- Reducing LLPAs and g-fees that reflect the GSEs’ actual risk,
- Enforcing fairness in appraisal,
- Making reforms to account for flood risk,
- Improved credit scoring, and
- Aiding the expansion of housing supply