NFHA Issues Statement in Support of FHFA’s Proposed Rule for Fair Lending Oversight

FOR IMMEDIATE RELEASE
April 19, 2023
Contact: Izzy Woodruff | 202-898-1661 | iwoodruff@nationalfairhousing.org

NFHA Issues Statement in Support of FHFA’s Proposed Rule for Fair Lending Oversight

Washington, D.C. — Today, the Federal Housing Finance Agency (FHFA) announced a Notice of Proposed Rulemaking (NPRM) on Fair Lending Oversight, which would formalize many of FHFA’s existing practices for oversight of its regulated entities.

Specifically, the proposed rule would codify in regulation:

• FHFA’s fair lending oversight requirements for Fannie Mae and Freddie Mac (the Enterprises) and the Federal Home Loan Banks (FHLBanks);
• the requirements for the Enterprises to maintain Equitable Housing Finance Plans; and
• the requirements for the Enterprises to collect and report homeownership education, housing counseling, and language preference information from the Supplemental Consumer Information Form (SCIF).

Nikitra Bailey, Executive Vice President of the National Fair Housing Alliance, issued the following statement regarding FHFA’s announcement:

“The National Fair Housing Alliance applauds Director Thompson and FHFA for seeking to codify by regulation these three critically important initiatives.

“As we celebrate the 55th anniversary of the Fair Housing Act this year, we commend FHFA’s efforts to ensure access to mortgage credit on fair terms for all creditworthy borrowers, regardless of their race, national origin, gender, disability, familial status, or other protected characteristics. Although we have made some significant strides as a society since 1968, we clearly still have a long way to go in fully dismantling the systems that continue to perpetuate inequity in the national housing finance market.

“The proposed regulation is consistent with FHFA’s obligation to Affirmatively Further Fair Housing and with existing statutes and regulations. This approach is essential to closing the racial homeownership and wealth gaps that have long plagued America’s housing finance system, and it also makes good business sense. The demographics of the nation are undergoing a dramatic shift, and the majority of new households formed over the next decade will be households of color. Actionable plans are critically important to support borrowers and communities of color. FHFA’s actions will promote a robust housing market that benefits all borrowers and communities.”

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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. Visit nationalfairhousing.org to learn more.