NCSHA Statement on the Federal Housing Finance Agency’s Proposed Capital Rule for Fannie Mae and Freddie Mac
WASHINGTON, DC ― The National Council of State Housing Agencies (NCSHA) today urged the Federal Housing Finance Agency (FHFA) to rescind its proposed regulatory capital framework for Fannie Mae and Freddie Mac because it would increase mortgage rates, decrease housing affordability, and impair the creation of new housing for low- and moderate-income households.
“The proposed regulation is inconsistent with Fannie Mae and Freddie Mac’s responsibilities under the law to both provide stability to the mortgage market overall and support mortgage financing for low- and moderate-income families, even if those activities are less profitable for the companies,” said NCSHA Executive Director Stockton Williams.
NCSHA’s detailed comments on the proposed regulation recommend that FHFA restart the rulemaking process with a balanced approach that reflects the companies’ charters and the unique and indispensable role Fannie Mae and Freddie Mac play in the affordable housing market, especially during times of economic stress.
NCSHA represents the nation’s state housing finance agencies, which are at the center of the nation’s affordable housing finance system. State HFAs have collaborated with Fannie Mae and Freddie Mac to extend billions of dollars in credit to tens of thousands of home buyers over the past several years. At the end of 2019, state HFA portfolios held more than $26 billion of Enterprise mortgage products. Twenty-eight state HFAs are sellers and/or servicers for one or both of the companies.
About the National Council of State Housing Agencies
For more than 50 years, state housing finance agencies (HFAs) have played a central role in the nation’s affordable housing system, delivering financing to make possible the purchase, development, and rehabilitation of affordable homes and rental apartments for low- and middle-income households.
The National Council of State Housing Agencies (NCSHA) is a nonprofit, nonpartisan organization created to advance, through advocacy and education, the efforts of the nation’s state HFAs and their partners to provide affordable housing to those who need it. NCSHA’s vision: An affordably housed nation. Learn more at www.ncsha.org.
NCSHA is a nonprofit, nonpartisan organization. None of NCSHA’s activities related to federal legislation or regulation are funded by organizations that are prohibited by law from engaging in lobbying or related activities.