The Federal Housing Finance Agency and the Department of Housing and Urban Development on
Thursday entered into a memorandum of understanding aimed at increasing Fair Housing Act enforcement for Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The MOU between the Department of Housing and Urban Development and the Federal Housing Finance Agency means the two will share information, and coordinate investigations and compliance reviews. HUD is primarily charged with enforcing the Fair Housing Act, and the FHFA regulates the government-sponsored enterprises.
"FHFA oversees entities that have significant control over a large share of the mortgage market. Stepping up our collective fair housing oversight of their activities will make an enormous impact,” said HUD Secretary Marcia Fudge in a press release.
The move is the latest in a series made by the Biden administration aimed at strengthening enforcement of the Fair Housing Act and making housing more equitable. Fannie Mae on Wednesday announced that it would consider on-time rent payments in underwriting. An interagency appraisal task force also convened recently to begin the work of addressing racial bias in home valuations.
Both GSEs have engaged in other efforts to broaden their outreach to a larger demographic of potential homeowners. Estimates suggest they have increased lending to Black and Hispanic home buyers within the constraints posed by their business models and systemic barriers compounded by the pandemic.
Fudge said steps would be taken to address such hurdles.
“We are prioritizing the work required to remove barriers that have created separate and unequal neighborhoods and limited access to housing opportunity and wealth building. I look forward to working with FHFA to make a meaningful impact in this space,” she said.
