Fannie Mae, Freddie Mac launch plans to close racial homeownership gap
Fannie Mae, Freddie Mac launch plans to close racial homeownership gap
Abstract
Fannie Mae and Freddie Mac’s first equitable housing plans will rely on mortgage company uptake of experimental underwriting strategies around credit, appraisals and more to address the wide homeownership gap between white and minority borrowers. For years, the homeownership rate for Black households has run around 30 percentage points lower than their white counterparts. Freddie Mac has proposed minimizing loan-level price adjustments in areas with predominantly minority populations through a special purpose credit program. Fannie Mac has proposing minimizing loan. and experimenting with automatic payment deferrals.
