NCSHA Statement on the Nomination of Calabria to Head FHFA
WASHINGTON, DC — The National Council of State Housing Agencies (NCSHA) congratulates Mark Calabria on the announcement that President Trump intends to nominate him to be the next Director of the Federal Housing Finance Agency (FHFA). We look forward to working with Mr. Calabria, if he is confirmed, to make housing capital more available and affordable to households and communities that need it, and to utilize the capabilities of state Housing Finance Agencies (HFAs) to achieve that essential statutory requirement of the housing Government Sponsored Enterprises (GSEs) that FHFA regulates.
FHFA has long recognized the HFAs’ importance in the housing system. The agency’s 2014 strategic plan noted: “HFAs have historically provided access to credit and lower down payment lending for lower- and moderate-income families and have proven, strong performance records.” From 2012 – 2017 state HFAs delivered $35 billion in affordable home mortgage loans in partnership with Fannie Mae and Freddie Mac.
State HFA loans to low- and moderate-income (LMI) households in the years following the Great Recession were 20 percent less likely to default and 30 percent less likely to experience foreclosure than loans from other sources to LMI borrowers, according to independent research published this year. That research found: “Not only are HFAs more likely to require full documentation and careful underwriting, they also serve as a third-party monitor on the partner lenders originating loans through the state program, creating an additional incentive for careful screening by the lender.”
The next FHFA Director has the opportunity to strengthen and build on the proven track record of state HFA – GSE partnerships, to the benefit of low- and moderate-income households and the housing market overall. This will be NCSHA’s priority in working with FHFA and its new leadership in the months ahead.
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.
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.