Washington, D.C. — Today, the Federal Housing Finance Agency, or FHFA, directed Fannie Mae and Freddie Mac to begin making contributions to the Housing Trust Fund and Capital Magnet Fund as provided for in the Housing and Economic Recovery Act of 2008. Former FHFA Director Ed DeMarco had suspended contributions to this fund in 2008 when Fannie Mae and Freddie Mac were put into conservatorship. Julia Gordon, Director of Housing Finance and Policy at the Center for American Progress, released the following statement:
FHFA’s announcement is extremely welcome news for low-income households, most of whom pay more than half of their meager incomes on housing. Lack of affordable housing not only leaves families with insufficient resources for groceries, medication, transportation, and other life necessities, but it also places them at greater risk of homelessness.
FHFA should provide even further support for low-income families through a strong housing goals rule and other policy decisions that enable and Fannie Mae and Freddie Mac to provide financing for underserved borrowers, renters, and neighborhoods.
Related resources:
Helping America’s Renters by David M. Abromowitz
The Importance of the Housing Finance System to America’s Low-Income Families by Julia Gordon and David Sanchez
Can FHFA Save the Mortgage Market? by Sarah Edelman and Julia Gordon
For more information or to speak with an expert, contact Allison Preiss at 202.478.6331 or [email protected].