UMMC Statement on Proposal to Reduce Fannie Mae and Freddie Mac’s Affordable Homeownership Goals
The Underserved Mortgage Markets Coalition (UMMC) issued the following statement on that the Federal Housing Finance Agency’s (FHFA) proposal to revise its existing regulation, lowering Fannie Mae and Freddie Mac’s (the Enterprises) goals for purchasing affordable mortgages for lower-income homebuyers:
“This week, FHFA proposed to reduce Fannie Mae and Freddie Mac’s targets for purchasing affordable mortgages. These goals help ensure that Fannie Mae and Freddie Mac are focused on lending to households with lower incomes – the likes of teachers and nurses and firefighters, not just the wealthiest borrowers,” said Sarah Brundage, President and CEO of the National Association of the Affordable Housing Lenders.
“As the coalition dedicated to ensuring the Enterprises are supporting access to housing for all families and in every housing market, UMMC strongly believes that the Enterprises should be focused on supporting affordable homeownership for hard-working families. Without meaningful goals, the dream of homeownership could move even further out of reach.”
Congress requires FHFA to establish and the Enterprises to meet targets for financing homes for very low- and low-income homebuyers, homebuyers in low-income areas, and multifamily properties affordable to low-income renters. FHFA sets the Enterprises’ annual affordable housing goals targets by regulation every three years and annually issues a determination of whether each Enterprise met each of its affordable housing goals for the prior year. FHFA issued a regulation establishing the Enterprises’ affordable housing goals for 2025-2027 on December 30, 2024. The proposed updates would reduce the targets for the share of affordable mortgage loans that Fannie Mae and Freddie Mac make to lower income homebuyers.
About The Underserved Mortgage Markets Coalition
The Underserved Mortgage Markets Coalition (UMMC) is a coalition of more than 40 organizations committed to expanding access to affordable and sustainable homeownership and housing opportunities through Fannie Mae and Freddie Mac.