The Federal Housing Finance Agency (FHFA) announced updates to Fannie Mae and Freddie Mac’s (the Enterprises) Equitable Housing Finance Plans for 2023. Updates to the Enterprises’ 2022-2024 Plans include, but are not limited to:
- Inclusion of the Latino Housing Journey and actions to remove barriers experienced by Latino renters and homeowners in Fannie Mae’s plan;
- Enhanced focus on ensuring existing borrowers receive fair loss mitigation support and outcomes through monitoring and developing strategies to close any gaps;
- Provision of financial capabilities coaching to build credit and savings;
- Support for locally owned modular construction facilities in communities of color; and
- Increases to the reach of Enterprise Special Purpose Credit Programs to support homeownership attainment and housing sustainability in underserved communities.
In addition, the Enterprises each released performance reports that outlined their progress under their Equitable Housing Finance Plans during 2022 and actions they are taking to advance equity in their automated underwriting systems, such as the inclusion of rental payments and cash flow underwriting and the use of advanced statistical techniques to improve model fairness. Read the Fannie report here and the Freddie report here.