The day after Labor Day, the nation’s top housing regulator announced that its regulated entities, which control half the nation’s $11 trillion housing market, would have to come up with plans to address racial equity.
The Federal Housing Finance Agency’s decree came with a tight deadline for Fannie Mae and Freddie Mac. The two government sponsored enterprises would have less than four months to submit and implement the plans which, along with annual progress reports, the FHFA vowed to make public.
Both of the GSEs quickly chimed in with statements of support, although the terms of their conservatorship mandate their cooperation.
“Barriers to homeownership remain for people of color and other minorities,” said Hugh Frater, CEO of Fannie Mae. “With FHFA’s support, we will continue working on addressing these issues and engaging with industry partners to take concrete steps to remove them.”