FHFA proposes updates to rules for government-backed mortgages in underserved markets
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The Federal Housing Finance Agency (FHFA) is asking for public comments on a proposed rule that would update how Fannie Mae and Freddie Mac serve low- and moderate-income housing markets. These two government-sponsored enterprises are currently required by law to support lending in areas that have historically been left out of the mainstream mortgage market.
Why it matters: This matters because Fannie Mae and Freddie Mac purchase the majority of home loans in the United States. Their rules dictate how easily lenders can offer mortgages for non-traditional housing types like mobile homes or rural properties, as well as for lower-income borrowers. Updating these rules changes the paperwork requirements for lenders and could influence where credit flows in the housing market.
Who it affects
- Fannie Mae and Freddie Mac (the government-sponsored enterprises)
This is a proposed rule from the Federal Housing Finance Agency published in the Federal Register; you should check the original document for full details before relying on it.
Agency: Federal Housing Finance Agency
Source: Federal Register — read the official document