The Federal Housing Finance Agency (FHFA) recently announced that it is looking to formalize and strengthen its fair housing policies through the establishment of new rulemaking. This change is particularly important in light of the fact that Fannie Mae and Freddie Mac have been granted an expanded role in the housing sector by the Trump administration. This development serves as yet another indication of how the government is looking to tackle the ongoing issue of underinvestment in certain low-income neighborhoods.
The FHFA, which is responsible for the regulation of Fannie Mae and Freddie Mac, is aiming to ensure that the role of these two housing giants are consistent with the Fair Housing Act. This new rulemaking would clarify how Fannie Mae and Freddie Mac are to carry out their duties in terms of providing access to housing in higher cost and lower-income communities. It will also promote the “duty to affirmatively further fair housing” among the two GSEs in order to close the racial and economic disparities in housing.
This new rule from the FHFA will make it easier for regulators to identify the potential sources of discrimination in the housing market. It will also help to protect individuals from inappropriate practices such as steering and redlining. The new rule will also build on recent measures that the Trump administration has taken to limit redlining and loan servicing bias. Furthermore, the proposed rule would also focus on ensuring access to financing for housing in lower cost communities, which are often overlooked and underserved by current lending practices.
Overall, the new rule from the FHFA serves as a positive step forward in the fight against discrimination in the housing market. It will help make sure that Fannie Mae and Freddie Mac are implementing practices that are in line with the Fair Housing Act and will ensure that individuals of all backgrounds have access to the homes that they need. By creating this new rule, the FHFA is sending a strong statement that it is not only committed to making sure fair housing standards are upheld, but also to ensuring that all individuals have access to the financing they need to purchase homes.
You can read this full article at: https://www.housingwire.com/articles/fhfa-to-formalize-fair-housing-policies-through-rulemaking/(subscription required)
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