MarketScreener, March 30th, 2019: Federal National Mortgage Association: NCRC insists that any GSE reform must protect affordable housing goals
WASHINGTON, March 29 — The National Community Reinvestment Coalition, an organization that works to uphold fair housing, fair lending and consumer protection laws, issued the following statement by CEO Jesse Van Tol:
This week, President Trump released a statement calling for the end to the conservatorship of Fannie Mae and Freddie Mac (GSEs).
“NCRC supports ending the conservatorship of Fannie Mae and Freddie Mac. However, we are concerned that the fundamental restructuring of the housing finance system contemplated by this White House memorandum and Chairman Crapo’s outline will set in motion further limits on those who have access to the system today.
“There is an affordable housing crisis in this country, and the homeownership rate is near a historic low. The gap between white and African-American homeownership is the largest it has ever been. And, there appears to be a lack of vision in the president’s statement about how to address these pressing challenges.
“The nation’s policymakers are at a critical juncture that will determine how low- and moderate-income borrowers and communities of color access conventional mortgage credit that is affordable. The housing finance reform being discussed by the White House and the Senate could increase mortgage rates and fees for many borrowers; dampen outreach and loan products targeted to underserved market segments (people with student loan debt, minorities and low-income borrowers and communities) and limit the partnerships developed with key stakeholders in those communities that facilitate access to mortgage credit and to homeownership. Millions of Americans could lose access if housing finance reform is done wrong.
