A newly formed group of big-name housing advocates—calling themselves the Underserved Mortgage Market Coalition—have called on Fannie, Freddie, and the Federal Housing Finance Agency (FHFA) to be more transparent about their plans and more aggressive about how they will pursue that mission going forward. “Amid a housing affordability crisis that requires bold and aggressive action, Fannie Mae and Freddie Mac have set forth plans that fail to effectively reach those not served or not served well by the conventional mortgage market” the coalition’s members wrote in a letter to FHFA Acting Director Sandra L. Thompson.
David Dworkin at the National Housing Conference says it was always intended to be a short-term fix. “The moratorium has prevented what could have been a devastating wave of evictions during the worst phase of the pandemic,” Dworkin said. But he says it has also cost landlords billions of dollars.
David Dworkin, president of the National Housing Conference, said the rejection is a great opportunity for GSEs to develop a robust plan that “stretches their capabilities.” “The GSEs’ obligations to serve underserved markets can be much more robust, and these plans don’t do that,” he said.
The broader political picture for the FDIC after the Biden administration is even murkier. Some analysts say that McWilliams’ resignation could mark a new era of partisan-style governance at the agency. “At some point,” said David Dworkin, president and CEO of the National Housing Conference, “we’re going to have to ask ourselves: How tied to the political pendulum do we want our regulatory agencies to be, particularly when it swings back hard and fast?”
Also expressing congratulations was David M. Dworkin, president and CEO of the National Housing Conference (NHC) who also said that McCargo will be best positioned for success by addressing any personnel deficiencies in the government’s housing arm, including filling the position of Federal Housing Administration (FHA) Commissioner through the confirmation of the president’s nominee, Julia Gordon, for that position.
David M. Dworkin, President and CEO of the National Housing Conference echoed similar sentiments. “President Biden’s nomination of Sandra Thompson to serve as Director of the FHFA is the right choice for one of the most important jobs in housing.”
We’re at a crossroads. We can continue with the status quo or we can take steps to ensure all families in our country — including families of color — have access to opportunity. Congress must make significant investments in housing programs, including the first-generation targeted down payment assistance program in the Build Back Better Act.
“Solving our housing affordability crisis requires multiple actions by all levels of government and the private sector, and an invigorated role for Fannie Mae and Freddie Mac is one of them,” said George W. “Mac” McCarthy, President of the Lincoln Institute of Land Policy and the lead convener of the coalition. “The Underserved Mortgage Markets Coalition seeks to hold Fannie Mae and Freddie Mac accountable and uphold their founding purpose: to bring housing finance opportunities to American families not traditionally served by the private market.”
A group of affordable housing organizations has called on the Federal Housing Finance Agency (FHFA) to compel government-sponsored enterprises Fannie Mae and Freddie Mac to improve their “Duty to Serve” (DTS) proposals before approving them.