Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBs) are government-sponsored enterprises (GSEs) that help bring capital to the housing markets. Their regulator is the Federal Housing Finance Agency (FHFA).
HFAs and the Housing GSEs
Fannie Mae and Freddie Mac purchase and securitize loans from HFAs and other lenders who then use the proceeds to finance more mortgages. The FHLBs provide advances and other financial products to support their members’ affordable housing activities. The GSEs are critical in providing liquidity, stability and affordability to the mortgage market, particularly for long-term, fixed-rate mortgages.
Until recent years, Fannie Mae and Freddie Mac were large purchasers of Housing Bonds and Housing Credits. NCSHA is working with the Administration and Congress to encourage Fannie Mae and Freddie Mac to support HFA bond issuance and liquidity needs. NCSHA supports a strong, healthy GSE system in order to ensure stability, liquidity, and affordability in the home mortgage market. One of NCSHA’s Legislative Priorities is to ensure the GSEs support HFAs with liquidity and capital, through the purchase of HFA Bonds and Housing Credits and other means.
NCSHA Blog Posts
- May 16, 2013
A special report released by Moody’s on May 10 finds that participating in Fannie Mae’s HFA Preferred Risk Sharing program could benefit HFAs’ credit by allowing them to offer a new product to borrowers and increase their presence in the affordable housing market. The report also warns that HFAs participating in the program may face increased costs due to unexpected early defaults and also from setting up the secondary financing infrastructure necessitated by the program, but says that HFAs should be able to mitigate these risks.
- May 14, 2013
Fannie Mae’s partnership with state housing finance agencies (HFAs) demonstrates how our cooperative efforts continue to open doors in the affordable housing market, despite the difficult challenges that have arisen in housing finance over the past several years.
- Wall Street Journal
- Washington Post
- Bloomberg News
- August 2, 2012
The funding comes by way of the AG’s office from the National Mortgage Settlement. It was given to the Tennessee Housing Development Agency to administer. THDA officials say the application process will be similar to that of the Hardest Hit Fund, which helps homeowners on the brink of foreclosure.
- Ohio HFA Closes the First Multifamily Bond Transaction Under the Obama Administration’s Treasury/GSE InitiativeApril 30, 2010
The Ohio Housing Finance Agency (OHFA) recently issued $5.6 million of tax exempt bonds on behalf of New Hampshire House Associates, LLC. The proceeds of the bonds will be used to finance the acquisition and rehabilitation of a multifamily residential rental facility in Warren, Ohio.
- April 29, 2011
Get into the swing of spring with an energetic exchange of ideas and knowledge with your HFA peers from across the country at our annual Virtual Spring Training. Spring Training is open to HFAs only.
Government Sponsored Enterprises (GSEs) - Resources
- April 11, 2013
The Administration sent Congress yesterday its FY 2014 Budget, proposing funding for all federal programs, including HUD and the Department of Agriculture’s (USDA) rural housing programs.
- March 3, 2013
Support a strong secondary market system with a robust affordable housing mission that engages HFAs as preferred affordable lending partners in meeting the needs of low and moderate-income families.