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GSEs Further Advancing the Pursuit of Affordable Housing

The Federal Housing Finance Agency (FHFA) has announced the release of its inaugural Mission Report [1], “2021 Mission Report: Affordable Housing Activities of the Regulated Entities,” that describes the activities of Fannie Mae and Freddie Mac (the GSEs) and the Federal Home Loan Banks (FHLBanks) in 2021 to provide greater access to financing for targeted economic development and affordable, equitable, and sustainable housing.

“FHFA is committed to promoting affordability, equity, and sustainability in the nation's housing finance markets," said FHFA Acting Director Sandra L. Thompson [2]. “Our regulated entities have made progress in many mission-driven areas, and we will continue to improve affordable housing opportunities to support homeowners and renters."

Highlights from the 2021 Mission Report include:

Despite the positive measures noted in the report, the gap in home loan application acceptance rates remains persistent for Black and Latino borrowers, as these borrowers represented 6.3% and 14.2%, respectively, of all home loans purchased by the GSEs in Q4 2021. According to the report, among large metro areas, Miami-Fort Lauderdale-Pompano, Florida reported the largest share of home purchase loans for Black and Latino borrowers, as the GSEs acquired 28,900 home purchase loans for Black and Latino borrowers, which represents 55.5% of all home purchase loans.