Industry participants spoke last week on effective implementation of the Department of Housing and Urban Development’s discriminatory effects rule during a conference of the National Fair Housing Alliance.
Ted Tozer, Urban Institute non-resident fellow, argues that policymakers should update the FHA Modernization Act so lenders are no longer banned from providing downpayment assistance to FHA borrowers.
The Community Home Lenders of America is pushing for Congress to create a cash window for deliveries to Ginnie Mae. Former Ginnie President Ted Tozer noted the agency’s charter doesn’t allow it to operate a cash window.
Experts call for ongoing, intentional and collaborative efforts across federal agencies to combat racial disparities in homeownership and access to housing financing.
After falling below $100 billion in each of the previous two periods, Ginnie Mae issuance turned a corner in the second quarter. But volume is still far off the numbers for most of the past four years. (Includes four data charts.)
The proposed program could be improved by simplifying communications with borrowers and making changes that expand the number of borrowers who can be helped, industry and consumer groups said.
Allowing lenders to provide downpayment assistance on FHA loans would extend homeownership to underserved borrowers who have a difficult time amassing even a 3.5% downpayment, the former Ginnie Mae president said.