WASHINGTON, DC – Today, Fannie Mae (FNMA/OTCQB) announced the latest updates to its 2022-2024 Equitable Housing Finance Plan, which aims to dismantle the barriers to housing and homeownership encountered by historically underserved groups throughout the United States.
The 2024 updates highlight Fannie Mae’s commitment to intensifying its initiatives, especially those that assist consumers in navigating challenges like limited credit history, high initial housing costs, access to credit, and financial and property stability.
The three-year plan targets critical hurdles for underserved consumers, renters, and homeowners. The revised 2024 Plan lists 23 specific initiatives that build on the successes and insights gained in the initial years, incorporating two new measures:
- Enhancing pre-purchase counseling for nearly mortgage-ready, first-time homebuyers, to bolster their confidence in engaging with advisors and securing housing.
- Defining “first-generation homebuyer” to standardize how Fannie Mae and other entities in the housing market assess and create strategies to overcome the financial disparities caused by insufficient savings or inherited wealth.
Over the first two years, Fannie Mae laid foundational work to tackle housing inequities affecting underserved populations and advanced towards its objectives through collaborations with lenders, industry partners, and community stakeholders. In 2023, the plan expanded several initiatives, including:
- Increasing opportunities for renters through rent payment reporting to credit agencies, enhancing credit scores and mortgage accessibility via underwriting technology that accounts for rent payment histories.
- Offering affordable housing options, down payment aid, and financial counseling through Innovation Challenge awardees in underserved rural and urban areas.
- Lowering upfront housing costs for creditworthy first-time buyers through the HomeReady® First pilot, a special purpose credit program, enhancing their ability to own homes.
- Promoting financial literacy, housing counseling, and educational support to help consumers purchase and sustain homeownership.
Katrina Jones, Vice President of Housing Equity Strategy & Impact at Fannie Mae, commented, “We continue to develop a fair and sustainable housing ecosystem. Despite today’s challenges, these efforts are crucial for ensuring all consumers have access to affordable housing. We are motivated by our Plan’s accomplishments and anticipate further progress in creating a more equitable housing system.”
For more information, read the original press release from: https://www.fanniemae.com/newsroom/fannie-mae-news/fannie-mae-updates-equitable-housing-finance-plan