Summary
A new proposal from the Federal Housing Finance Agency (FHFA) could make it more difficult for first-time homebuyers to secure mortgages. The plan suggests lowering the affordable housing goals for Fannie Mae and Freddie Mac, which are organizations that play a major role in the U.S. housing market. Critics worry this change might limit access to mortgages for lower and middle-income families.
Key Facts
- The proposal affects Fannie Mae and Freddie Mac’s goals to support affordable housing.
- Fannie Mae and Freddie Mac help make mortgages cheaper by buying them from lenders.
- The Federal Housing Finance Agency (FHFA) sets goals for these companies to increase homeownership among low- and middle-income families.
- Bill Pulte, appointed by President Trump, is the new FHFA director proposing a change in the housing goals.
- The proposed rule would combine certain home purchase goals into a single target and lower the benchmarks.
- The FHFA claims aggressive goals may have increased costs for middle-class borrowers.
- Consumer advocates argue the change could disadvantage lower to moderate-income homebuyers by lowering the housing support available.
- The proposal suggests these adjustments could help the FHFA better understand lending patterns and costs.
