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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.

GSE Reform

Recently, Congress has begun to consider comprehensive reform legislation, particularly Fannie Mae and Freddie Mac. NCSHA supports a strong, healthy GSE system in order to ensure stability, liquidity, and affordability in the home mortgage market. NCSHA's position paper on GSE reform calls for a for a system with an explicit goverment guarantee, robust affordable housing goals, and a clear commitment to partnering with HFAs.

Useful Links: Federal Housing Finance Agency, Fannie Mae, Freddie Mac, U.S. Federal Home Loan Bank System

NCSHA Blog Posts

  • December 15, 2015
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    Earlier today the Federal Housing Finance Agency (FHFA) released its proposed “Duty to Serve” rule, which would require the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac to support housing for lower income families in three underserved segments of the housing finance market: manufactured housing, affordable housing preservation, and homeownership opportunities in rural areas.

  • October 22, 2015

    Seven presidential candidates—Former Maryland Governor Martin O’Malley, Senator Lindsey Graham of South Carolina, former Arkansas Governor Mike Huckabee, New Jersey Governor Chris Christie, former New York Governor George Pataki, former Virginia Governor Jim Gilmore, and Senator Rand Paul of Kentucky—each individually addressed the Summit to discuss how they would address the affordable housing crisis if elected president.

    News

    • August 2, 2012
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      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.

    • April 30, 2010
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      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.

      Government Sponsored Enterprises (GSEs) - Resources

      • December 18, 2015
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        The National Council of State Housing Agencies (NCSHA) is a national nonprofit, nonpartisan organization created by the nation’s state Housing Finance Agencies (HFAs) to advance through advocacy and education their efforts to provide affordable housing to those who need it. NCSHA’s priorities, adopted annually by its Board of Directors after consultation with all state HFAs, set the agenda for NCSHA’s advocacy before Congress, the Administration, and the federal agencies concerned with housing, including HUD, USDA, and the Treasury, as well as its business activities.

      • March 20, 2015

        On March 18, 2015, NCSHA joined several other housing organizations in this letter supporting a Senate Budget Resolution amendment cosponsored by Senator Mike Crapo (R-ID) and Senator Mark Warner (D-VA) that would ensure Congress cannot raise Fannie Mae and Freddie Mac guarantee fees to offset the costs associated with unrelated initiatives. The Senate adopted similar language during the 113th Congress with bipartisan support. The Senate Budget Committee passed the amendment by a voice vote.