A plan for more equitable opportunities for all
Fannie Mae’s Equitable Housing Finance Plan (EHFP) is an actionable, three-year road map designed to overcome inequities in the U.S. housing market. In its second year, the 2023 Plan outlines new actions and adaptive changes while the goal remains the same: to knock down the barriers to affordable rental housing and homeownership for historically underserved populations.
The Black and Latino Housing Journeys
Fannie Mae’s housing equity efforts are guided by a data-driven, evidence-based, and consumer-centric framework referred to as the Consumer Housing Journey. Download the Black Housing Journey and Latino Housing Journey research PDFs to learn more about the distinct obstacles faced by Black and Latino consumers.
What’s new in 2023
The Latino Housing Journey: A new data-based consumer journey informs our actions and provides additional insights to the existing Black Housing Journey.
New actions: Building on last year’s equitable housing plan, new actions were developed specifically to improve equitable access to rental housing and financially empower renters.
An innovation portfolio: Five new projects will support community-based approaches to sustainable housing for Black people in communities of opportunity.
Closed or revised actions: Two actions from last year’s EHFP were removed to focus on more efficient efforts, and most other actions were updated based on early learnings or input.
2022 Performance Report: An overview of our results in the first year of the EHFP, including progress summaries for each of our 17 initial EHFP actions.
Driven by this research, the EHFP focuses on actions that promote more equitable housing along three main phases of the housing journey:
Promoting credit building and financial education to help underserved households increase access to affordable rental housing and prepare early for sustainable homeownership.
Renting or Buying
Removing unnecessary obstacles consumers face when shopping for, acquiring, renting, or financing a home.
Move In and Maintain
Improving the housing system so renters and homeowners can withstand disruptions and remain stably housed.
25 actions in the Equitable Housing Finance Plan
Housing Preparation Renting or Buying Move In and Maintain
Pilot rental payment reporting across the multifamily industry to help renters with no credit score establish a credit history and help those with low credit scores to increase them
Support financial capabilities coaching to build credit and savings in targeted markets
Support the implementation of a positive rent reporting program for Black renters to help them establish and/or improve credit using on-site financial coaching programs at rental properties (Innovation Challenge)
Support the expansion of a comprehensive financial coaching and HUD-approved counseling and planning for development of affordable housing in rural Virginia (Innovation Challenge)
Expand access for borrowers with insufficient credit through automated underwriting enhancements to support consumers
Expand access to credit for first-time homebuyers through an automated underwriting enhancement that considers a borrower’s positive rent payment history as part of the credit risk assessment
Continue pilot of special purpose credit programs (SPCPs) to help support the expansion of homeownership and availability of down payment assistance (DPA), while exploring ways to reduce SPCP participation hurdles for lenders
Pilot options to defray and/or decrease the cost of renter security deposits to help Black and Latino renters qualify for quality rental housing and increase savings
Close the knowledge gap for consumer audiences with targeted outreach and expanded homeownership curriculum to create more confident consumers along the housing journey
Explore the potential to derive value from Social Index-related mortgage-backed securities issuance to promote access to credit and borrowing cost reduction for underserved borrowers
Valuation modernization to support an equitable appraisal process for Black and Latino households and communities of color
Expand Appraiser Diversity Initiative to attract new entrants to the residential appraisal field by reducing barriers to entry (such as education, training, and experience requirements), and fostering diversity, which we believe will help to reduce the instances of appraisal bias.
Reduce closing costs for consumers to help remove the barrier of lack of sufficient funds for closing (down payment plus closing costs)
Pilot a multifamily borrower diversity program to reduce barriers for property owners from historically underserved groups
Launch a Delegated Underwriting and Servicing (DUS®) correspondent diversity program
Develop and launch Sponsor-Dedicated Workforce (SDW), a Fannie Mae Multifamily loan incentive initiative for use by multifamily borrowers and lenders
Continue to advance Sponsor-Initiated Affordability (SIA), a Fannie Mae Multifamily loan incentive initiative for use by multifamily borrowers and lenders
Support the revitalization and expansion of housing opportunities in a historically Black neighborhood through rehabilitation and infill housing (Innovation Challenge)
Support the creation of locally owned modular construction facilities in urban communities of color (Innovation Challenge)
Support the development of a locally controlled special purpose credit program to increase Black homeownership (Innovation Challenge)
Connect diverse (Black and Latino) college students to career opportunities in housing and real estate finance via the expansion of Fannie Mae’s Future Housing Leaders® program
Pilot homeownership sustainability services, such as post-purchase counseling and mortgage reserve accounts, as a feature of special purpose credit programs (SPCPs) to strengthen borrower housing stability over time
Promote awareness of fair servicing best practices to address borrower loss mitigation disparities
Expand counseling services for renters and homeowners facing hardship
Provide climate analytics to empower communities with data, enabling them to make a stronger case for change and resources