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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

  • April 20, 2015
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    The Federal Housing Finance Agency (FHFA) announced April 17 that it has determined that the guarantee fees (g-fees) that Fannie Mae and Freddie Mac charge lenders in exchange for insuring single-family mortgage loans should generally stay at their current level. However, the agency directed each firm to make targeted adjustments to its fees, including eliminating the upfront adverse market fee for new single-family loans and increasing the g-fees for loans with secondary financing.

  • March 27, 2015
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    Yesterday, the Federal Housing Finance Agency (FHFA) released a final rule establishing certain requirements regarding Fannie Mae and Freddie Mac’s contributions to the Housing Trust Fund and the Capital Magnet Fund (the Funds). Specifically, the rule would prohibit Fannie Mae and Freddie Mac from trying to recoup their allocations to the Funds by passing along the costs to loan originators, and sets a framework by which FHFA will enforce this prohibition. The final rule is identical to an interim final rule FHFA proposed in December.

    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

      • 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.

      • March 2, 2015

        The Senate Banking and House Financial Services Committees are the committees of jurisdiction over all HUD programs, including the Federal Housing Administration (FHA) and Section 8. The committees also oversee the housing Government-Sponsored Enterprises (GSEs), including Fannie Mae, Freddie Mac, Ginnie Mae, and the Federal Home Loan Banks (FHLBs).