Brief The GSEs’ Equitable Housing Finance Plans
Subtitle
Strengths and Missed Opportunities
Janneke Ratcliffe, Laurie Goodman, Michael Stegman
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This brief discusses the inaugural Equitable Housing Finance Plans (EHFPs) released by the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, at the direction of the Federal Housing Finance Agency. EHFPs are three-year plans outlining the actions the GSEs will undertake to promote sustainable homeownership and rental opportunities for traditionally underserved Black and Latino communities. The brief highlights what we find good about the plans, what we find bad, and what we find lacking. We previously pointed out that the success of this effort depends on focused, measurable goals addressing the legacies of race- and place-based housing discrimination, aligned with the GSEs’ role in the system, their statutory purpose, and their policy and business motivations, including ensuring the GSEs’ safety and soundness. Furthermore, we hold that the endurance of these efforts depends on integrating the key EHFP elements into the GSEs’ business models. We also note the FHFA’s essential role in ensuring the effectiveness and durability of this effort.

Research Areas Housing finance
Tags Housing affordability Housing finance reform Racial barriers to housing Racial homeownership gap
Policy Centers Housing Finance Policy Center Office of Race and Equity Research