The Federal Housing Finance Agency today issued a final rule to codify many of its existing practices and programs regarding fair housing and fair lending oversight of its regulated entities: Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
Among other things, the rule makes changes to Fannie’s and Freddie’s Equitable Housing Finance Plans to promote greater accountability, adds oversight of unfair or deceptive acts or practices to FHFA’s fair housing and fair lending oversight programs, requires additional certification of compliance by all the entities, and establishes more precise standards related to fair housing, fair lending and equitable housing principles for the entities’ boards.
The final rule also creates a new requirement for FHLBs to annually report on any actions they voluntarily take to address barriers to sustainable housing opportunities for underserved communities. However, it does not require the FHLBs to undertake such actions or engage in the planning process required of Fannie or Freddie.
FHFA creates Division of Public Interest Examination
FHFA also announced the creation of the Division of Public Interest Examination, which will be responsible for supervisory oversight of the agency’s regulated entities in the areas of affordable housing, community development, diversity and inclusion, consumer protection and fair lending.
The new division will highlight the FHFA’s focus on public interest examinations and increase synergy and collaboration between existing public interest examination programs, the agency said. James Wylie, who has led FHFA’s Office of Fair Lending Oversight since 2018, has been named deputy director of the division.
