Washington, DC – Today, in response to Federal Housing Finance Agency (FHFA) Director Mel Watt’s announcement that FHFA has revised and clarified the Representation and Warranty framework, and will be developing new guidelines for mortgages with loan-to-value ratios between 95 and 97 percent, NCRC President and CEO John Taylor made the following statement:
“We applaud the FHFA for taking these positive steps, but these steps alone are not enough. We urge Director Watt to continue the effort to expand credit access through the FHFA’s forthcoming affordable housing goals rulemaking.”
“The affordable housing goals play a crucial role in supporting sustainable homeownership opportunities for our nation’s working families. It is essential that FHFA issues a strong rule that demonstrates a commitment to creating opportunity in a changing housing market. The proposed rule is lacking, and must be strengthened to ensure access to credit for creditworthy borrowers now and in the future.”
“It is also essential that Director Watt moves forward with funding the National Housing Trust Fund.”
FHFA released a proposed affordable housing goal rule on August 29. To see a state-by-state breakdown of the benefits of the affordable housing goals, visit here. For the latest updates on NCRC’s work on the subject of housing finance reform, visit here.
About the National Community Reinvestment Coalition (NCRC):
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America’s working families.