MCLEAN, Va., April 29, 2024 — Freddie Mac today released its 2023 Equitable Housing Finance Plan and Performance Report, along with updates to its goals and strategies for 2024 within its three-year initiative. The Plan outlines Freddie Mac’s strategies to foster sustainable homeownership and rental solutions for communities that are typically underserved. Since 2022, over 764,000 minority homeowners have been aided by Freddie Mac in buying or refinancing their homes, which represents about 33% of its Single-Family acquisitions.
Pam Perry, Vice President of Equitable Housing for Single-Family at Freddie Mac, stated, “Our Equitable Housing Finance Plan is central to our mission to enhance homeownership for underserved groups. We are advancing through proven strategies like down payment assistance, Special Purpose Credit Programs, and educational outreach.”
Corey Aber, Vice President of Mission, Policy & Strategy for Multifamily at Freddie Mac, added, “Our efforts in the multifamily sector aim to establish and preserve affordable rental options, significantly helping renters and promoting a diverse and equitable financing environment.”
Key highlights of the 2023 accomplishments have also been published by the company.
The 2024 updates to the Plan include:
- Enhanced Access to Down Payment Assistance: In 2023, Freddie Mac introduced DPA One®, a comprehensive platform aiding lenders and loan officers in connecting borrowers with nationwide down payment programs. Over 3,600 loan officers have utilized this tool, accessing nearly 700 programs across 49 states and D.C. The initiative will be expanded further in 2024.
- Special Purpose Credit Programs (SPCP): Continuing its support for homeownership among underserved communities, Freddie Mac aims to purchase an additional 10,000 SPCP-originated loans in 2024, after acquiring over 9,300 in 2023.
- Support for Renters: Freddie Mac is increasing efforts to integrate rental payment history into loan decisions, enhancing credit scores for about 500,000 renters, with significant numbers achieving higher scores or establishing credit for the first time. The focus for 2024 is to make timely rent reporting a standard industry practice.
- Alternative Credit Data Use: Freddie Mac is expanding the use of non-traditional credit data like rent payment history in its loan assessments, continuing to broaden access to credit and fostering greater inclusivity.
- Emerging Market Support: The Multifamily sector introduced an emerging correspondent program to aid smaller financial entities, including minority depository institutions, in accessing Freddie Mac’s resources.
Freddie Mac has also been active in training initiatives like the Develop the DeveloperSM Academy, which targets increasing the presence of minority and women developers. In 2023, it trained over 119 developers, contributing to significant new housing development.
Additionally, the company has committed to further increase the funding of multifamily units through its Forward Commitments, with a goal of supporting over 20,000 units in 2024.
The ongoing efforts are part of Freddie Mac’s broad strategy outlined in its Equitable Housing Finance Plan, which focuses on closing the homeownership gap, promoting investments in historically disadvantaged areas, and broadening opportunities for renters and diverse housing market participants.
For more information, read the original press release from: https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-delivers-2024-equitable-housing-finance-plan