Affordable Housing Goals Set by FHFA Do Not Go Far Enough to Help Homebuyers

FOR IMMEDIATE RELEASE

Contact:
Joseph Rendeiro
(202) 776-1566
jrendeiro@nclr.org

NCLR: Affordable Housing Goals Set by FHFA Do Not Go Far Enough to Help Homebuyers

WASHINGTON, D.C.—Yesterday, the Federal Housing Finance Agency (FHFA) released a final version of its affordable housing goals for Fannie Mae and Freddie Mac, both government-sponsored enterprises (GSEs). The goals are benchmarks to ensure GSE-backed loans and rental housing units remain affordable for underserved markets. Unfortunately, the goals presented will not go far enough to ensure greater access to affordable credit for low-income communities such as Latinos. NCLR (National Council of La Raza) is deeply disappointed that the FHFA has not made a stronger push for Fannie Mae and Freddie Mac to uphold the principles of fair, equitable and nondiscriminatory access to consumer credit, which could help creditworthy Latino families locked out of the housing market.

“Every day, housing counseling agencies in the NCLR Homeownership Network set families up for success as they seek to purchase their first home,” said Lindsay Daniels, Manager of the Wealth-Building Initiative at NCLR. “Despite their expert advice and support, our housing counselors see extremely low numbers of new homeowners. Latino families simply cannot meet the high down payment, credit score, and interest rate requirements that dominate the mortgage market right now. The GSEs have a mandate to provide access to affordable credit and sustainable lending, but the rules presented yesterday do not go far enough to reach those objectives.”

The GSEs were built in part to help qualified families access safe loans that would otherwise be difficult to find in the private market. Now more than ever, Latino families need a fair system to help them recover the vast amount of wealth that was lost in the housing crisis. Unfortunately, they are still paying more for credit. More than 40 percent of Hispanic households with mortgages report paying interest rates above 5 percent, compared to less than one-third of White households. Both the administration and Congress should seize every opportunity to make homeownership affordable. NCLR is ready to work with lawmakers to reform the housing finance system in a way that works for all Americans.

NCLR—the largest national Hispanic civil rights and advocacy organization in the United States—works to improve opportunities for Hispanic Americans. For more information on NCLR, please visit www.nclr.org or follow along on Facebook and Twitter.

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