The


Federal
Housing
Finance
Agency
(FHFA)
this
week
released
its
annual

Housing
Mission
Report,
offering
insights
into
the
actions
the
agency
took
in
2023
on
a
host
of
issues.

These
include
oversight
of
the
government-sponsored
enterprises
(GSEs)


Fannie
Mae
and


Freddie
Mac,
mortgage
purchases
designed
to
improve
affordability
for
low-income
homeowners,
vendor
partnerships
and
investments
in
the

Low-Income
Housing
Tax
Credit
(LIHTC)
program.

All
told,
the
GSEs
purchased
more
than
136,000
single-family

mortgages
to
low-
and
moderate-income
homebuyers
last
year
through
the
HomeReady
and
Home
Possible
programs.
They
also
added
“enhancements”
to
the
programs
themselves,
including
the
addition
of
“a
credit
of
$2,500
for
very
low-income
borrowers
that
lenders
must
pass
through
to
borrowers
by
applying
it
to
the
down
payment
or
closing
costs,”
the
report
stated.

The
GSEs
also
purchased
15,000
Special
Purpose
Credit
Program
(SPCP)
loans
“through
both
lender-sponsored
initiatives
and
their
proprietary
SPCPs.”
These
are
designed
to
support
homeownership
efforts
for
borrowers
in
underserved
communities.

Through
the
HomeReady
First
SPCP,
Fannie
Mae
acquired
921
loans
with
a
total
of
more
than
$5
million
in
down
payment
or
closing
cost
assistance,
the
report
stated.
Seventy-nine
percent
of
participating
borrowers
self-identified
as
“members
of
historically
underserved
groups.”
Fannie
also
purchased
4,747
loans
through
lender-sponsored
SPCPs
in
which
81%
of
borrowers
self-identified
as
part
of
such
groups.

Freddie
Mac’s
BorrowSmart
Access
SPCP
saw
the
acquisition
of
2,462
loans
“with
close
to
$4
million
in
down
payment
or
closing
cost
assistance,”
according
to
the
report.
The
GSE
also
purchased
6,828
loans
originated
through
lender-sponsored
SPCPs.
More
than
half
(57%)
of
these
loans
were
“obtained
by
underserved
borrowers.”
Nearly
9,300
households
took
advantage
of
either
Freddie
Mac’s
program
or
its
support
for
lender-sponsored
SPCPs.

Stemming
from
its
equitable
housing
finance
plans,
FHFA
also
oversaw
the
GSEs’
partnerships
with
certain
vendors
to
make
more
rent-payment
data
available
to
credit
bureaus
from
participating
multifamily
housing
property
owners.

Rent
payment
data
gives
renters
a
more
efficient
avenue
to
either
establish
or
strengthen
their
credit
profiles.
Nearly
3,000
multifamily
properties
were
added
last
year
to
the
GSEs’
programs.
Through
Fannie
Mae,
27,845
renters
established
credit
profiles
while
117,182
renters
strengthened
their
existing
profiles.
Freddie
Mac
had
55,300
renters
establish
profiles
and
304,194
strengthen
them,
according
to
the
report.

The
GSEs
also
“invested
over
$1.7
billion
last
year
in
[LIHTC]
equity,
including
transactions
that
support
housing
in
Duty
to
Serve-designated
rural
areas,
preserve

affordable
housing,
support
mixed-income
housing,
provide
supportive
housing,
or
meet
other
affordable
housing
objectives.”

More
than
90%
of
these
LIHTC
investments
by
the
GSEs,
or
some
$1.6
billion,
were
made
in
“targeted
transactions,”
meaning
they
were
investments
that
either
support
housing
in
Duty
to
Serve-designated
rural
areas
or
“meet
other
affordable
housing
objectives
defined
by
FHFA,”
the
report
explained.

“FHFA
maintains
a
keen
focus
on
ensuring
the
entities
we
regulate
fulfill
their
missions
to
support
access
to
housing
opportunities
in
a
safe
and
sound
manner,”
FHFA
Director

Sandra
Thompson
said
in
an
announcement
of
the
report.
“Ongoing
affordability
challenges
throughout
the
country
only
heighten
the
importance
of
this
responsibility.”

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