NCSHA Washington Report | March 24, 2023
We’re very pleased to announce the HFA1 Affordable Homeownership Lender Toolkit, a new online resource that will enable home mortgage lenders to partner more efficiently with state housing finance agencies in providing mortgage loans and down payment assistance to lower-income home buyers.
The HFA1 Lender Toolkit identifies the key features of HFA homeownership programs that are most important for lenders in determining how and where to partner with the agencies. Its development reflects substantial progress by a growing number of agencies to align elements of their programs to support more efficient participation in them by regional and national lenders.
“The HFA1 Lender Toolkit is the most significant effort yet by state housing finance agencies to collectively assess opportunities to make their homeownership programs easier for mortgage lenders to participate in for the purpose of expanding affordable homeownership opportunities for lower-income Americans,” said Gerald Hunter, president of the Idaho Housing and Finance Association and co-chair of NCSHA’s Homeownership Task Force.
Through a multi-year process with leading members of the Mortgage Bankers Association and other industry stakeholders, a group of 13 HFAs reduced or eliminated loan “overlays,” created a common loan delivery checklist to reduce operational differences, and aligned their affordable mortgage and down payment assistance requirements in numerous areas. These moves will save time and money throughout the mortgage process, generating cost savings for borrowers.
“I commend the MBA members and state housing finance agencies that have worked hard for the past two years to establish greater efficiencies and new tools to expand affordable mortgages and down payment assistance to people and places that need it,” said MBA President and CEO Bob Broeksmit.
The toolkit complements recent efforts by Fannie Mae and Freddie Mac to encourage efficiencies and cost savings in mortgage offerings serving lower-income borrowers and actions by Lakeview Loan Servicing, LLC, and US Bank to augment HFA homeownership programs in a higher interest rate environment. Initial funding for the development of the toolkit was provided by Wells Fargo. Specialty Mortgage Product Solutions provided technical support.
Programs from HFAs in these states are featured in the toolkit: Alabama, Arizona, California, Colorado, Idaho, Illinois, Iowa, Massachusetts, New Mexico, South Dakota, Tennessee, Utah, and Washington. HFAs in other states are expected to join later this year.
“State HFA homeownership programs are a proven vehicle for delivering affordable mortgage and down payment assistance to lower-income borrowers, including home buyers of color,” said Kristin Faust, executive director of the Illinois Housing Development Authority and co-chair of NCSHA’s Homeownership Task Force. “Now, more lenders will be able to participate in them more efficiently.”
More on the HFA1 Lender Toolkit is available here.
Stockton Williams | Executive Director
Stockton Williams | Executive Director
Washington Report will return April 7.
State HFA Emergency Housing Assistance
In This Issue
- HOME Coalition Sends Congress Letter Requesting $2.5 Billion for HOME in FY24; Coons and Beatty Circulate Dear Colleague Sign-On Letters
- HUD Recodifies Disparate Impact Regulations
- Looking Ahead
HOME Coalition Sends Congress Letter Requesting $2.5 Billion for HOME in FY24; Coons and Beatty Circulate Dear Colleague Sign-On Letters
On March 23, the HOME Coalition, which NCSHA chairs, sent a letter to senior appropriators and congressional leaders on behalf of 749 national and state organizations asking for $2.5 billion in funding for the HOME Investment Partnerships program for fiscal year 2024. A copy of the letter, which cites severe shortages in affordable housing and increased housing cost burdens on families, can be found here.
In addition, Representative Joyce Beatty (D-OH) has circulated to her House colleagues a sign-on letter also supporting $2.5 billion for HOME, and Senator Chris Coons (D-DE) has circulated to his Senate colleagues this sign-on letter supporting $2.1 billion for HOME. Please encourage your members to sign the Coons or Beatty letters by their respective deadlines. The deadline for the Beatty letter is March 30 at Noon and the deadline for the Coons letter is March 31.
HUD Recodifies Disparate Impact Regulations
Last week, the Department of Housing and Urban Development (HUD) published a final rule reinstating the Discriminatory Effects Standard regulations — commonly referred to as the disparate impact rule or burden-shifting framework — originally put in place under the Obama Administration in 2013. Discriminatory effects are facially neutral practices that have an unjustified discriminatory effect on a protected group, even if unintentional. Disparate impact regulations establish a process for court consideration of cases related to discriminatory effects.
Under the Trump Administration in September 2020, HUD issued a final rule titled HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard, intended to replace the 2013 Discriminatory Effects Standard. However, a U.S. District Court stayed HUD’s implementation of the 2020 final rule, leaving the 2013 rule in effect. In June 2021, the Biden Administration issued a proposed rule to reinstate the 2013 rule. The rule HUD published last week finalizes that proposed rule, officially reinstating the 2013 rule, effective 30 days after its publication in the Federal Register, which is expected soon.
Legislative and Regulatory Activities
- March 24 | Comments Due to NCSHA | USDA Proposed Rule on Section 538 Guaranteed Rural Rental Housing Program
- March 28 | Application Deadline | Community Compass Technical Assistance and Capacity Building Program
- March 28 | FHFA Listening Session: Enterprise Single Family Social Bond Program Policy
- April 3 | Comments Due to NCSHA | FHFA RFI on Enterprise Single-Family Social Bond Program
- April 3 | Comments Due | HUD Advanced Notice of Proposed Rulemaking on Section 8 Program Regulations Standardization
- April 3 | Comments Due | USDA Proposed Rule on Section 538 Guaranteed Rural Rental Housing Program
- April 7 | Comments Due to NCSHA | FHFA Proposed Changes to GSE Capital Requirements
- April 7 | Comments Due to NCSHA | HUD RFI on HUD’s 203(k) Rehabilitation Program
- April 10 | Comments Due | Affirmatively Furthering Fair Housing Proposed Rule
- April 17 | Comments Due | FHFA RFI on Enterprise Single-Family Social Bond Program
- April 17 | Comments Due | HUD RFI on HUD’s 203(k) Rehabilitation Program
- May 1 | Comments Due | Review of Mortgage Loan Origination Rules (including Loan Originator Compensation)
- May 12 | Comments Due | Proposed Changes to GSE Capital Requirements
NCSHA, State HFA, and Industry Events
- March 27 – 29 | NCSHA’s 2023 Legislative Conference | Washington, DC
- March 30 | National Community Reinvestment Coalition Just Economy Conference 2023 | Washington, DC
Garth Rieman will speak at this event. - April 12 | E&A Team’s Annual Accessibility Summit | Virtual
Jim Tassos will speak at this event. - April 17 – 19 | Nebraska Investment Finance Authority’s 2023 Innovation Expo | Lincoln, NE
Jennifer Schwartz will speak at this event. - April 25 – 27 | Affordable Housing Investors Council’s 2023 Spring Meeting | Baltimore, MD
Stockton Williams will speak at this event. - April 27 – 28 | Novogradac 2023 Affordable Housing Conference | San Francisco, CA
Jennifer Schwartz will speak at this event. - May 9 | Ballard Spahr National Housing Summit | Washington, DC
Jennifer Schwartz will speak at this event. - May 10, 11:59 p.m. ET | Entry Deadline | NCSHA’s 2023 Awards for Program Excellence
- May 15 | Last Day for Discounted Early Registration, Hotel Group Rate: NCSHA’s Housing Credit Connect & Marketplace | Seattle, WA
- June 13 – 16 | NCSHA’s Housing Credit Connect & Marketplace | Seattle, WA
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