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
The GSEs are critical in providing liquidity, stability and affordability to the mortgage market, particularly for long-term, fixed-rate mortgages. 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.
Both Fannie Mae and Freddie Mac have done business with the HFAs to help support affordable single-family and multifamily housing opportunities. Both firms currently offer specific HFA-only products that allow HFAs to sell the single-family loans with preferred terms. Recognizing HFAs’ track record of responsibly supporting affordable housing lending, FHFA has directed Fannie Mae and Freddie Mac to work more closely with HFAs.
In addition, until recent years, Fannie Mae and Freddie Mac were large purchasers of Housing Bonds and Housing Credits. Both firms plan to resume their Housing Credit investments soon.
Some HFAs have also partnered with the various FHLBs to finance their single-family and multifamily programs. HFAs are allowed to join their local FHLB ranch as associate housing members.
Recently, Members of Congress, policymakers, and outside experts have begun to discuss proposals for comprehensive GSE 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 system with an explicit government guarantee, robust affordable housing goals, and a clear commitment to partnering with HFAs.
For more information on NCSHA’s GSEs advocacy, contact Greg Zagorski, Senior Legislative and Policy Associate, at email@example.com. Members of the media should contact Lisa Bowman, Director of Marketing and Communications, at firstname.lastname@example.org.
- March 20, 2018NLIHC Report Spotlights Affordable Rental Housing Shortage
According to the recent NLIHC study, there are 11.2 million extremely low-income (ELI) renter households in the United States — nearly 26 percent of all renter households and almost 10 percent of all households.
- March 8, 2018FHFA Proposes Changes to FHLB Affordable Housing Program
The Federal Housing Finance Agency (FHFA) issued March 6 a proposed rule that would amend the Federal Home Loans Banks’ (FHLB) Affordable Housing Program (AHP).
- March 2, 2018AEI Housing Experts Release Plan for Winding Down Fannie Mae and Freddie Mac
At an event Tuesday at the American Enterprise Institute (AEI), several housing experts discussed their proposal to eliminate the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and privatize most of the housing finance system.
Housing Government-Sponsored Enterprises (GSEs) - Resources
- March 13, 2018National Low Income Housing Coalition Report on the Shortage of Affordable Rental Homes
Each year, the National Low Income Housing Coalition (NLIHC) measures the availability of rental housing affordable to extremely low income households and other income groups. Based on the American Community Survey Public Use Microdata Sample (ACS PUMS), The Gap presents data on the affordable housing supply and housing cost burdens at the national, state, and
- May 16, 2016JCHS: The State of the Nation’s Housing 2015
One telling indicator of the state of the nation’s housing is the drop in the homeownership rate to just 64.5 percent last year, erasing nearly all of the increase in the previous two decades. The number of homeowners fell for the eighth straight year, signaling persistently weak demand in this key market segment. And the trend does not appear to be abating, with the national homeownership rate down to 63.7 percent in the first quarter of 2015.
- May 16, 2016JCHS: America’s Rental Housing: Expanding Options for Diverse and Growing Demand
The decade-long surge in rental demand is unprecedented. In mid-2015, 43 million families and individuals lived in rental housing, up nearly 9 million from 2005—the largest gain in any 10-year period on record. In addition, the share of all US households that rent rose from 31 percent to 37 percent, its highest level since the mid-1960s.
- December 21, 2017FHFA Releases 2018 Scorecard for Fannie Mae, Freddie Mac and Common Securitization SolutionsFederal Housing Finance Agency
- December 20, 2017FHFA Issues Request for Input on Fannie Mae and Freddie Mac Credit Score RequirementsFederal Housing Finance Agency