NCRC Applauds Letter from 32 Members of Congress to FHFA Director and Treasury Secretary Urging Adequate Capital at Fannie and Freddie

Washington, DC – Today, the National Community Reinvestment Coalition applauded a letter from 32 Members of Congress to FHFA Director Mel Watt, and Treasury Secretary Jack Lew, urging them to ensure that Fannie Mae and Freddie Mac are adequately capitalized. NCRC members first introduced and urged Members of Congress to sign on to this letter at the 2016 NCRC Annual Conference Hill Day.

NCRC President and CEO John Taylor made the following statement:

“We applaud Congressman Mike Capuano for his leadership and the Representatives from across the country for bringing attention to this critical issue, and we applaud the many NCRC members and others who have worked hard to get this issue on the radar of their Members of Congress. We believe this letter provides Director Mel Watt with Congressional support to take action on what he has identified as ‘the most serious risk‘ facing the Enterprises — their lack of capital.”

“For some time, NCRC has been advocating for the recapitalization of Fannie Mae and Freddie Mac. With their current paper-thin capital buffer, a complete loss of capital at Fannie and Freddie is a real danger. This would be a further detriment to the GSEs’ mission of supporting affordable housing for low- and moderate-income borrowers and securitizing loans for millions of middle class people.”

The letter to Director Watt and Secretary Lew can be read here.

Earlier this week, NCRC and other groups sent a letter to FHFA Director Mel Watt calling for the recapitalization of the GSEs.

Also earlier this week, NCRC President and CEO John Taylor authored a piece for the Urban Institute’s Housing Finance Reform Incubator series.

In 2015, NCRC released a white paper calling for the recapitalization and continued reforms of the GSEs and an end to their conservatorship.

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NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: