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An expert panel forecasted that changes to Fannie Mae and Freddie Mac’s Affordable Housing Goals will cause a decrease in lending to underserved borrowers.
Government-sponsored entities (GSEs) Fannie Mae and Freddie Mac follow affordable housing goals by purchasing mortgages held by lower-income households or underserved communities. A new draft Senate bill has a framework in place to eliminate these affordable housing goals in favor of a new fee-based incentive system. Supporters of the bill say this change will encourage lending to underserved borrowers, while opponents worry the bill would cause confusion about the amount of resources available, Zillow reports.
As part of the most recent Zillow Home Price Expectations Survey, more than 100 economists and real estate experts nationwide were asked to determine how lending to underserved borrowers ... Half of respondents said they expected lending to underserved borrowers would decrease if the affordability goals were eliminated; about a third thought lending would increase or remain unchanged, and the rest were unsure.
