Statement by NHC President and CEO David M. Dworkin: FHFA suspension of limits on so-called higher-risk loans essential for expanding homeownership
Today’s announcement by the Federal Housing Finance Agency and the U.S. Department of the Treasury that they have suspended limits on so-called “higher-risk loans” made by Fannie Mae and Freddie Mac is an essential step towards increasing opportunities for those who have been denied access to the American dream of homeownership. The so-called “limits on loans with higher-risk characteristics” were unnecessary when they were instituted and only served to prevent credit-worthy homebuyers, disproportionately people of color, from becoming homeowners.