The Importance of the Housing Finance System to America’s Low-Income Families
Conversations about housing finance reform sometimes get mired in technical talk about securitization, capital markets, and regulatory requirements. Yet this jargon obscures a crucial fact: the way our nation funds its housing market drives whether families have access to affordable, quality housing. With Congress considering legislative changes to the outdated housing finance system, it’s critical that those who care about the challenges facing low-income families and communities make their voices heard.
Many people mistakenly believe that Fannie Mae and Freddie Mac have no importance to those with lower incomes – especially renters – because the federal government only supports low-income housing through direct subsidies or the Federal Housing Administration mortgage program.
In truth, while these programs are essential for millions of low-income Americans, Fannie and Freddie also play a critical role in ensuring affordable housing for low- and moderate-income families. These institutions directly support the construction and preservation of affordable rental housing, and they run programs that help lower-income families and communities access mortgage credit. Consequently, any reforms to these housing finance companies will directly impact low-income families.
Read more here.
This article was originally published in Spotlight on Poverty and Opportunity.
To speak with our experts on this topic, please contact:
Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or firstname.lastname@example.org
Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or email@example.com
Print: Allison Preiss (economy, education)
202.478.6331 or firstname.lastname@example.org
Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or email@example.com
Print: Chelsea Kiene (women's issues, TalkPoverty.org, faith)
202.478.5328 or firstname.lastname@example.org
Print: Benton Strong (Center for American Progress Action Fund)
202.481.8142 or email@example.com
Spanish-language and ethnic media: Jennifer Molina
202.796.9706 or firstname.lastname@example.org
TV: Rachel Rosen
202.483.2675 or email@example.com
Radio: Sally Tucker
202.481.8103 or firstname.lastname@example.org