The Federal Housing Finance Agency requested comment on a proposed rule that would formalize many of the agency’s existing practices and programs regarding fair housing and fair lending oversight of its regulated entities.
Details: The proposed rule would codify:
Fair lending oversight requirements for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
Requirements for the government-sponsored enterprises to maintain Equitable Housing Finance Plans.
Requirements for the GSEs to collect and report homeownership education, housing counseling, and language preference information from the Supplemental Consumer Information Form.
Expanded fair lending compliance requirements and Equitable Housing Finance Plan oversight.
Background: The FHFA last year released inaugural Equitable Housing Finance Plans to address housing barriers via consumer education initiatives and expanded counseling services. It also last year announced that lenders will be required to use the Supplemental Consumer Information Form as part of the application process for all loans that will be sold to Fannie and Freddie.
ICBA View: ICBA has opposed mandating the collection and reporting of language preference data due to increased cost and possible legal liability, and it has urged the FHFA to prioritize safety and soundness while avoiding excessive risk at the enterprises.
Comments: Comments on the new proposed rule are due within 60 days of its publication in the Federal Register. ICBA plans to submit comments.
