Fannie and Freddie boast about their downpayment assistance and consumer education programs, key initiatives to help first-time homebuyers in a high-interest-rate, low-supply market.
Freddie’s head of single-family acquisitions said programs, such as DPA One, BorrowSmart and HeritageOne, have helped the GSE lower closing costs and expand access to mortgage credit.
The Urban Institute, with funding from the National Fair Housing Alliance, has developed resources lenders can use to launch special purpose credit programs.
The National Association of Hispanic Real Estate Professionals called for more public policy to support Hispanic lending, including through special purpose credit programs.
Fannie Mae’s announcement of an update to its HomeReady program drew applause from the crowd at the MBA’s independent mortgage bankers conference this week.
Fannie hopes Spanish-language credit education and targeted downpayment assistance will help it put the still-growing cohort of Latino consumers into their first home.
FHFA joins HUD, OCC and CFPB in an effort to promote the use of special purpose credit programs as a way to boost lending in disadvantaged communities.
Consolidating FHFA’s authority to support fair housing and fair lending laws under the umbrella of the GSEs’ equitable housing finance plans will improve access to mortgage credit for underserved communities, supporters say. The GSEs, however, see key problems.