FHFA to Require Race-Conscious Housing Plans from Fannie Mae, Freddie Mac

The Federal Housing Finance Agency today announced that Fannie Mae and Freddie Mac will be required to submit annual “equitable housing finance plans” by the end of the year.

FHFA said the requirements will cover GSEs’ three-year plans to reduce racial and ethnic disparities in housing finance outcomes. Mandatory elements in the first year’s plans will include objectives, metrics and action steps related to reducing racial and ethnic homeownership gaps and promoting investment and higher home values in once-redlined areas with ongoing racial or ethnic concentrations of poverty. Fannie and Freddie’s first progress reports will be due in April 2023.

FHFA sought public feedback on several elements of its equitable housing finance plans. Comments are due by Oct. 25.