Fannie and Freddie modified their policies to support lower-income borrowers by allowing greater use of downpayment assistance and equity-sharing programs.
For Fannie, the most obvious change was a major expansion of the EHFP’s target audience. In its initial plan, the enterprise had focused almost exclusively on Black homebuyers.
The regulator of the GSEs wants to know if there are ways it can help improve protections for the tenants of apartment buildings financed by Fannie and Freddie.
In a sign of how much business declined at Fannie and Freddie last year, their contributions to the two affordable housing programs are off 50% from 2022.
Critics argue that, by targeting deep-pocket institutional buyers, the enterprises’ sale of non-performing and reperforming loans removes homes from the buyers’ market and makes it impossible for nonprofit organizations to participate meaningfully.