FHFA says the new committee will provide greater transparency on policy and give shareholders more input on matters related to affordable, equitable and sustainable housing.
Conservative economist Douglas Holtz-Eakin said the Federal Reserve’s exit from the MBS market is helping drive up interest rates in the affordable housing space. The remedy, he said, is GSE reform.
At the first of three planned listening sessions, FHFA heard that for-profit investors increasingly use litigation to pressure nonprofit affordable housing developers to sell LIHTC-funded properties at minimal prices.
The White House action plan for increasing the supply of affordable housing largely piggybacks on the duty-to-serve plans of Fannie Mae and Freddie Mac.
Donna Corley, Freddie’s head of single-family, said borrowers will soon be able to use the Choice Renovation product to finance the construction of accessory dwelling units and count the rent toward income.