NCSHA Washington Report | March 21, 2025

Bill Pulte, the top regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, wants to “Make Mortgages Great Again,” and in his powerful position, which as of this week also includes chairing Fannie and Freddie’s boards, he can achieve that ambition in a number of ways. Here are three.

By making mortgages more affordable. Mortgage rates have come down some over the past year but are still relatively high compared to recent historical lows. Candidate Trump promised a return to those levels and as president has directed federal agencies to lower the cost of housing.

Fannie and Freddie’s main business helps generate lower rates for borrowers than they otherwise would pay, which suggests an affordability focus should start by doing no harm. That means in part continuing well-established partnerships with mortgage lenders and HFAs that serve creditworthy lower-income borrowers. And it should include exploring new ways for the companies to provide liquidity through these channels for first-time buyers, such as through purchases of HFAs’ highly rated bonds.

By making mortgages more available in rural areas. Affordable homes are available in many rural and exurban areas, but mortgage applicants in them typically face higher denial rates, forcing many to use riskier financing alternatives or “forgo homeownership entirely even if they are financially ready to buy.” According to the Housing Assistance Council, “Small financial institutions in rural areas often struggle to find access to the secondary mortgage market [Fannie and Freddie] and larger lenders ignore rural and persistently poor markets altogether.”

Fannie and Freddie have statutory obligations to expand financing both in rural areas and for manufactured homes, which are an important source of affordable rural housing. They have made some progress recently and can do more with greater regulatory focus and flexibility that encourages partnerships with HFAs and community lenders.

By making mortgages more economical to originate and close. Independent mortgage banks, which account for three-quarters of loans purchased by Fannie and Freddie, and mortgage subsidiaries of state chartered banks, reported a net loss on loan originations in the fourth quarter of 2024, the ninth quarterly net loss over the past three years. Average origination costs have risen 35 percent over that period.

Freddie research suggests digitization and other technology improvements could reduce loan costs for originators by 40 percent. Fannie sees “meaningful opportunities … for the mortgage industry to increase transparency around closing costs and potentially help save consumers money.” Credit scoring and reporting could be simplified as well. The HFA1 Affordable Lender Toolkit shows how streamlining and standardization can cut costs for lenders and borrowers.

The Federal Home Loan Banks, which are also under Pulte’s regulatory purview, have a role to play too in “making mortgages great again,” through efforts in all three aforementioned areas and expanded partnerships with state HFAs, like recent announcements by the Indianapolis bank, through the Michigan State Housing Development Authority, and the San Francisco bank, through the Nevada Housing Division.

News yesterday that Pulte had fired the CEO of Freddie Mac and placed dozens of employees at his agency on administrative leave, including the chief operating officer and head of human resources, has many wondering what management upheaval at the pillars of the secondary market may ultimately mean for mortgages.

Stockton Williams | Executive Director

In This Issue

• Crapo Touts Housing Credit for Possible Inclusion in Major Tax Legislation
• Wiessmann Participates in Congressional Briefing on Municipal Bond Tax Exemption
• FHFA Changes Fannie Mae, Freddie Mac Boards; Dismisses Freddie Mac Leadership
• HUD, Interior Secretaries Announce Task Force to Free Up Federal Lands for Housing
• HUD Streamlines Disaster Recovery Process with Universal Notice
• National Housing Supply Summit Convenes Stakeholders to Discuss Federal Role in Increasing Housing Supply
• Looking Ahead

Crapo Touts Housing Credit for Possible Inclusion in Major Tax Legislation
In an interview this week with East Idaho News, Senate Finance Committee Chair Mike Crapo (R-ID) raised the Housing Credit as an important solution to the nation’s housing crisis that could be part of the tax bill Congress is working on this year. Crapo said, “Finally, as I mentioned, we are working on a really aggressive tax bill to help keep people’s taxes low. Part of that is to provide extra funding for projects that help get access to capital into the housing industry, like the Low-Income Housing Tax Credit, which is something that could be a phenomenal boost to getting the housing that we need.” While nothing is certain about what’s in and what’s out when it comes to the tax bill — and it will all depend on how much Congress will be willing to spend on tax legislation — the chairman’s comments indicate an expansion of the Housing Credit is certainly in the running.

Wiessmann Participates in Congressional Briefing on Municipal Bond Tax Exemption
The tax exemption for municipal bonds is critical to HFAs’ support for affordable housing options, Pennsylvania Housing Finance Agency (PHFA) Executive Director and CEO and NCSHA Vice Chair Robin Wiessmann told congressional tax staff during a briefing held on Capitol Hill Tuesday. The briefing was hosted by the Public Finance Network, a consortium of associations, including NCSHA, dedicated to preserving the tax exemption for municipal bonds. At the briefing, Wiessmann introduced the audience to tax-exempt Mortgage Revenue Bonds (MRBs) and multifamily housing bonds. She provided specific examples of how PHFA has used MRBs and multifamily bonds to finance affordable housing opportunities for thousands of Pennsylvanians and noted that eliminating the tax exemption would increase costs and reduce the number of households HFAs could assist. Also participating in the briefing were Scranton, PA, Mayor Paige Cognetti and representatives from Montgomery County in Maryland and American Municipal Power. NCSHA thanks Robin for her participation on behalf of all HFAs.

FHFA Changes Fannie Mae, Freddie Mac Boards; Dismisses Freddie Mac Leadership
Newly sworn-in Federal Housing Finance Agency (FHFA) Director Bill Pulte late Monday made substantial changes to the boards of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Pulte appointed himself chair of both boards and removed eight Fannie Mae and six Freddie Mac board members. In addition to himself, Pulte appointed FHFA general counsel Clinton Jones to the boards of both GSEs, along with two additional board members for each firm, all of whom have connections with the Trump Administration. The previous two FHFA directors did not serve on the GSE boards. Last night, Freddie Mac’s newly constituted board dismissed the GSE’s corporate executive officer, Diana Reid, and placed its chief operating officer and head of human resources on administrative leave.

Pulte also took action this week to reduce staffing at FHFA, including closing the Division of Public Interest Examination and Office of Minority and Women Inclusion and put staff from both divisions on administrative leave. He also recently appeared on a television program to highlight empty offices at Fannie Mae and Freddie Mac headquarters, which he said suggested employees are not returning to work.

HUD, Interior Secretaries Announce Task Force to Free Up Federal Lands for Housing
U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner and Department of the Interior (DOI) Secretary Doug Burgum recently announced the creation of the Joint Task Force on Federal Land for Housing, which they are establishing to identify underutilized federal lands suitable for residential development, streamline land transfer processes, and promote policies that increase the availability of affordable housing. Turner and Burgum’s announcement notes that America needs more affordable housing and the federal government can make it happen by making federal land available to build affordable housing stock. Under the HUD/DOI agreement, HUD will pinpoint where housing needs are most pressing and work with state and local leaders who know their communities best. Interior will identify locations that can support homes while carefully considering environmental impact and land-use restrictions. These agencies will take inventory of underused federal properties, transfer or lease them to states or localities to address housing needs, and support the infrastructure required to make development viable, all while ensuring affordability remains at the core of the mission.

HUD Streamlines Disaster Recovery Process with Universal Notice
HUD Secretary Scott Turner announced Thursday HUD is streamlining and simplifying its disaster recovery processes to deliver disaster assistance more quickly to households recovering from catastrophic events. HUD published Wednesday a memorandum for all Community Development Block Grant – Disaster Recovery (CDBG-DR) grantees and HUD officials revising its Universal Notice, which consolidates relevant requirements from several Federal Register notices and Community Planning and Development notices since 1992, incorporates more than 700 stakeholder comments, and fully aligns with President Trump’s executive orders. The streamlined guidance will apply to the nearly $12 billion in CDBG-DR funds HUD allocated earlier this year. It also increases access to information on assistance status, simplifies housing documentation requirements for disaster survivors, provides flexibility for rental assistance, and offers greater flexibility on building codes and standards. Templates, checklists, and additional resources are available at HUD’s Universal Notice Overview webpage.

National Housing Supply Summit Convenes Stakeholders to Discuss Federal Role in Increasing Housing Supply
A broad cross-section of housing practitioners, advocates, and other experts gathered Wednesday in Washington, DC, for the National Housing Supply Summit, sponsored by HousingTech, the Housing Innovation Alliance, and the Center for Real Estate Studies at George Washington University. Speakers included Secretary Jake Day of the Maryland Department of Housing and Community Development and NCSHA Executive Director Stockton Williams. Panels addressed zoning, building codes, permitting, finance, insurance, labor, construction materials, and other factors affecting the supply of housing, both affordable and market rate. The conference also covered recommendations for federal action to increase housing supply. The conference sponsors will write a paper summarizing the discussions and recommendations, which you can sign up to receive when it is completed.

Looking Ahead

Legislative and Regulatory Activities

• March 26 | House Financial Services Subcommittee on Financial Institutions | Hearing: A New Era for the CFPB: Balancing Power and Reprioritizing Consumer Protections

NCSHA, State HFA, and Industry Events

• March 25 | The ACTION Campaign Hill Briefing and Reception | Washington, DC
  Stockton Williams and Jennifer Schwartz will speak at this event.
• March 26, 1:00 – 3:00 pm ET | NCSHA Webinar: Empowering Women in Housing Finance Careers | Virtual
• April 22 – 24 | Affordable Housing Investors Council Spring Meeting | Pittsburgh, PA
  Jennifer Schwartz will speak at this event.
• April 23 – 24, 1:00 – 4:30 pm ET | NCSHA Virtual Event: Housing Credit 101: Development
• April 28 – 30 | Nebraska Investment Finance Authority 2025 Innovation Expo | Lincoln, NE
  Jennifer Schwartz will speak at this event.
• May 1 | Minnesota Affordable Housing Summit | Minneapolis, MN
  Stockton Williams will speak at this event.