The National Fair Housing Alliance Applauds the Federal Housing Finance Agency on Housing Equity Plans for Fannie Mae and Freddie Mac 

Washington, D.C. – June 9, 2022 – Civil rights advocates secured a huge win yesterday when the Federal Housing Finance Agency (FHFA) announced the release of Equitable Housing Finance Plans for the GSEs to promote safety and soundness in U.S. financial markets and foster equitable access to quality, affordable, and sustainable housing and credit opportunities.  

Nikitra Bailey, Senior Vice President of Public Policy at the National Fair Housing Alliance (NFHA) issued the following statement regarding the announcement:  

“Advocates for fair housing and lending equity have just secured a major victory. Since the passage of the federal Fair Housing Act in 1968, civil rights experts have pleaded for all federal agencies and beneficiaries of taxpayer support, like Fannie Mae and Freddie Mac, to implement their housing and lending policies and programs in a manner that affirmatively furthers the goals of our nation’s fair housing and lending laws. The creation of the Equitable Housing Finance Plans is a significant step toward achieving that end.  

“Lack of adherence to civil rights laws has led to racial wealth and homeownership gaps not seen in a generation. Today, the Black/White homeownership gap is as high as it was when redlining was legal. The Latino homeownership rate continues to consistently lag the White homeownership rate by 25 percentage points, and neighborhoods of color remain credit deserts.  

“The plans are critical because Special Purpose Credit Programs will expand credit access and homeownership opportunities for communities of color underserved by our nation’s housing finance system. Pilot programs will be implemented to expand housing equity. The plans will provide greater use of rental payment data in underwriting, which is a reliable predictor of how today’s renters will perform as tomorrow’s homeowners. The plans also create greater avenues for the use of less discriminatory credit scoring systems in lending decisions and will drive investments in redlined neighborhoods.      

“NFHA applauds Director Sandra Thompson for delivering on her promise to keep Fannie and Freddie focused on their mission. Since taking the helm of FHFA, Director Thompson has implemented a wave of precedent-setting actions to advance fair housing and lending at the GSEs.  

“Later this month, NFHA will launch a Special Purpose Credit Programs toolkit with the Mortgage Bankers Association as part of our continued effort to expand credit access and close racial wealth and homeownership gaps. We also look forward to working with FHFA, Fannie Mae, and Freddie Mac to achieve the important goals and actions included in the Equitable Housing Finance Plans.”  

### 

The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for over 170 fair housing and justice-centered organizations and individuals throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.