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.
- To find local housing assistance, please contact your state’s Housing Finance Agency (HFA).
- To learn more about NCSHA’s advocacy work in this area or to attend a related education event, complete the general inquiry form.
- Members of the media, please contact Lisa Bowman, Director of Marketing and Communications, at firstname.lastname@example.org.
- September 13, 2018FHFA Proposed Rule Would Require GSEs to Align Policies to Facilitate Single Security
The Federal Housing Finance Agency (FHFA) September 12 released a proposed rule that would mandate that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac work to align their policies and procedures that could impact the prepayment speeds of their mortgage-backed securities (MBS) in the to-be-announced market (TBA).
- September 6, 2018House Committee Holds Hearing on Fannie/Freddie Conservatorship; Chairman Announces Bipartisan Reform Legislation
The House Committee on Financial Services Thursday held a hearing, titled A Failure to Act: How a Decade without GSE Reform Has Once Again Put Taxpayers at Risk, to review the 10 years since Fannie Mae and Freddie Mac (GSEs) were placed under government conservatorship. NCSHA released a statement to comment on some of the issues raised during the hearing.
- July 31, 2018FHFA Extends Comment Period for Proposed GSE Capital Standards
The Federal Housing Finance Agency (FHFA) announced today that it is extending the comment period for a proposed rule that would establish new capital requirements for the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.
Housing Government-Sponsored Enterprises (GSEs) - Resources
- September 6, 2018State Housing Finance Agencies: At the Center of the Affordable Housing System
Ten years after the Great Recession forced the federal government to make major changes to the nation’s housing system, state housing finance agencies have become more important than at any other time in their history to the system’s ability to make affordable housing available in America. This new report explains how.
- September 5, 2018GSE Reform Coalition Letter
This is an open letter addressed to the Administration and Congress titled, “A Defining Moment for Housing Finance: The Need to Preserve Access and Affordability,” signed by twenty nine agencies of the GSE Reform Coalition.
- March 16, 2018Freddie Mac | How Big a Difference Do Restricted Rents Make?
Freddie Mac’s analysis illustrates the significant financial savings Housing Credit tenants are able to achieve compared to low-income households living in comparable market-rate rental housing.
- March 29, 2018FHFA Report Details Progress on the 2017 Scorecard for Fannie Mae and Freddie MacFHFA.gov
- 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
- 2018 NCSHA Annual Conference & Showplace | NCSHA Members Only | October 13 – 16, 2018