United States: FHFA Strategic Plan Reflects Agency’s Increased Focus on Fair Lending
To print this article, all you need to do is be registered or log in to Mondaq.com.
The US Federal Housing Finance Agency (“FHFA”) draft strategic plan, which we discussed in a previous article, sets out the goals and objectives of the FHFA for the next four years. Not surprisingly, the FHFA’s recent focus on fair lending issues is reflected in the plan. Over the past year, FHFA has made many strides in advancing its fair lending efforts, such as concluding a collaboration agreement with HUDcausing Fannie Mae and Freddie Mac (the “Companies”) to submit Fair Finance Plans for Housing (which we have already discussed here), and issuing a fair loan policy statement and newscast. It has also taken steps to expand access to credit, announcing last summer, this positive rent payment history can be included in Fannie Mae’s underwriting process.
According to the plan, one of the agency’s three strategic goals is to foster housing finance markets that support equitable access to affordable and sustainable housing. Specific objectives include promoting sustainable access to mortgage credit, promoting equity in housing finance, serving as a trusted source of housing market information, facilitating housing availability affordable and support for the use of technology in mortgage processes. The strategic plan identifies a variety of means that FHFA plans to use to achieve these goals, many of which involve tracking and monitoring businesses. For example, FHFA offers to oversee companies’ implementation of Fair Housing Finance Plans and conduct equity and fair lending assessments and targeted reviews of regulated entities’ policies, products and initiatives. FHFA would also monitor corporate efforts to increase and preserve sustainable mortgage purchase and refinance credit for all qualified borrowers, with a greater focus on low- and middle-income families, communities of color, rural areas and other underserved populations.
Based on the goals of this strategic plan, it is possible that we will begin to see more changes in the mortgage underwriting process as the plan signals that FHFA will explore opportunities to leverage non-traditional data, approaches alternatives and new technologies. We can also expect to see the FHFA release more data and analysis on fair lending, fair housing, and equity-related topics in the future.
Visit us at mayerbrown.com
Mayer Brown is a global provider of legal services comprised of law firms that are separate entities (the “Mayer Brown Firms”). The Mayer Brown firms are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, two limited liability companies established in Illinois in the United States; Mayer Brown International LLP, a limited company incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales under number OC 303359); Mayer Brown, a SELAS based in France; Mayer Brown JSM, a partnership of Hong Kong and its associated entities in Asia; and Tauil & Checker Advogados, a Brazilian legal partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are registered trademarks of Mayer Brown law firms in their respective jurisdictions.
© Copyright 2020. Mayer Brown Practices. All rights reserved.
This article by Mayer Brown provides information and commentary on interesting legal issues and developments. The foregoing is not a complete treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action regarding the matters discussed here.
POPULAR ARTICLES ON: Finance and Banking of the United States