Berger urges FHFA to help expand homeownership access to underserved communities
NAFCU President and CEO Dan Berger Thursday wrote to Federal Housing Finance Agency (FHFA) Acting Director Sandra Thompson encouraging the agency to assist the government-sponsored enterprises (GSEs) in increasing opportunities to help underserved individuals purchase homes. In the letter, Berger asks the FHFA to consider pilot programs to expand access to mortgage credit for low- and moderate-income individuals.
NCUA Chairman Harper and the Biden Administration have been adamant on the need to better serve low- and moderate-income communities gain homeownership. “The FHFA, through its rulemakings, has recently committed to providing the GSEs with the necessary incentives to support sustainable lending initiatives,” noted Berger.
Berger calls on the FHFA to consider programs targeted towards buying mortgages from Community Development Financial Institutions (CDFIs) to help underserved borrowers and first-time homebuyers while granting credit unions the ability to better support these communities.
Additionally, Berger mentions one potential way to boost affordable and sustainable housing for low-income and underserved borrowers is through pilot programs modeled after the Wealth Building Home Loan (WBHL) and the Low Income First Time (LIFT) Home program which is reserved only for Federal Housing Administration (FHA) loans and is currently under consideration in the Build Back Better Act (BBBA). “Collectively, such programs will go a long way in closing the racial homeownership gap,” wrote Berger.
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