This article outlines plans from Fannie Mae and Freddie Mac to expand access to housing equitability. By expanding these plans, the two government-sponsored enterprises seek to make home mortgage loans more accessible for previously underserved communities. Historically, these two mortgage giants were traditionally limited in how much access they could provide for these communities due to a range of factors, including disparities in property wealth, credit scores, and job security, among other criteria.
The article outlines a range of significant changes to lending policies designed to make it easier for borrowers with lower credit scores and incomes to access mortgages. In particular, the article states that Fannie Mae and Freddie Mac will relax requirements, such as credit scores and debt-to-income ratios. Furthermore, the article states that these changes are intended to specifically ‘open the door to borrowers who have low credit scores but also have a valid record of paying bills on time.’
In addition to changing requirements, the article also notes that both Fannie Mae and Freddie Mac will expand their outreach and education to borrowers in order to help them access financing more easily. This includes offering free digital seminars targeted towards the needs of borrowers in underserved communities. The article emphasizes that this will help ensure these borrowers are informed on ‘all their potential options for qualifying for a loan and for gaining access to programs to help purchase or maintain their homes.’
The article also explains that the two GSEs plan to work with housing counselors, lenders, and diverse partners to reach and connect with one of their key markets – underserved communities. Through collaborating with multiple different stakeholders, Fannie Mae and Freddie Mac hope to expand access to housing equitability across these communities. Furthermore, this expansion of their plans provides an opportunity for the two GSEs to expand access to capital for countless borrowers, who had previously been excluded from the home loan process. In this way, Fannie Mae and Freddie Mac are taking a step forward to providing greater access to home mortgage loans for all.
You can read this full article at: https://www.housingwire.com/articles/fannie-mae-and-freddie-mac-expand-plans-for-equitable-housing/(subscription required)
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