The Federal Housing Finance Agency today announced two partnerships involving Fannie Mae, Freddie Mac and Federal Home Loan Banks to boost awareness and liquidity for programs that expand housing access for tribal communities, according to an agency statement.
In the first partnership, the FHLBank of Des Moines will help raise financial institution members’ awareness of Freddie’s HeritageOne mortgage purchase offering, which is designed to meet the specific borrowing needs of members of federally recognized Native American tribes living on tribal lands.
In the second, Fannie will purchase loans originated through the FHLBank Mortgage Partnership Finance program — administered by the FHLBank of Chicago — that are provided to Native American borrowers and secured by tribal land trusts.
Research has shown that Native American communities are often underrepresented in traditional financial services, according to FHFA. A 2019 FDIC report found that more 16% of Native Americans had no bank account, the highest of any demographic group. Native Americans also experience challenges in accessing mortgage credit.
