Updated three-year plan continues progress on fair and sustainable housing
MCLEAN, Va., April 29, 2024 (Globe Newswire) — Freddie Mac (OTCQB: FMCC) today announced its 2023 Fair Housing Financing Plan and Performance Report, as well as its 2024 Goals and Three-Year Equity announced modifications to housing behavior. Financing plan. The plan is the company's roadmap to foster sustainable homeownership and rental opportunities in traditionally underserved communities across the country. Since 2022, Freddie Mac has helped more than 764,000 minority borrowers buy or refinance their homes, accounting for approximately 33 percent of the company's single-family home acquisitions.
“Our Fair Housing Financing Plan is a key component of Freddie Mac's mission-driven efforts to expand homeownership and improve the lives of underserved families.” said Pam Perry, vice president of housing. “In our single-family home business, we are building a plan on proven initiatives such as down payment assistance, special purpose credit programs, and consumer education. We are making progress.”
“Freddie Mac's commitment to multifamily housing is focused on creating and preserving affordable rental housing, driving meaningful progress for renters, and building a more diverse and equitable multifamily finance industry.” said Corey Abar, Freddie Mac's vice president of multifamily mission, policy and strategy. “Through this initiative, we will address supply and affordability challenges that severely impact underserved communities, promote population-centered practices, and support diverse and emerging borrowers and lenders. We are contributing to increasing opportunities for
The company also today released a progress report highlighting its progress against its 2023 plan.
Updates included in this year's plan include:
-
Expanding access to down payment support To help first-time home buyers. In 2023, Freddie Mac launched his DPAOne®, a free one-stop shop that enables lenders and loan officers nationwide to quickly find and match borrowers to down payment assistance programs. Since its release, over 3,600 loan officers have signed up for his DPA One. This includes his nearly 700 DPA programs covering 49 states and the District of Columbia. Throughout 2024, Freddie Mac will continue to enhance the tool and promote DPA One to industry partners focused on underserved communities.
-
Use of the Special Purpose Credit Program (SPCP) Enabling homeownership in underserved communities. Under this plan, Freddie Mac will continue to purchase loans originated through both its lender's SPCP and its own SPCP, BorrowSmart Access.SM. BorrowSmart Access provides down payment assistance and financial education to eligible families. In 2023, Freddie Mac purchased more than 9,300 SPCP loans, the majority of which helped families of color achieve homeownership. Under the new plan, the company has committed to purchasing an additional 10,000 originated loans in 2024.
-
Expanding our efforts to help renters build credit and achieve homeownership. The company does this in two ways. One is to establish and improve your credit score, and the other is to consider your history of paying rent on time in your loan purchase decision. To date, approximately 500,000 renters have enrolled in Freddie Mac's Renter Credit Building Initiative, of which more than 300,000 have improved their credit scores and more than 55,000 participants have received first-time credit. Established score. The company aims to expand this initiative further to multifamily properties in 2024, with the goal of making on-time rent reporting the industry standard.
Freddie Mac is also taking steps to expand access to credit for historically underserved borrowers by utilizing alternative credit data, including rent payment history, as part of the company's loan purchasing decisions. Lectured. We will continue this work in 2024 by exploring further product enhancements, increasing awareness of our digital tools among borrowers and lenders, and continuing to engage with lenders to increase adoption. Masu.
-
Expanding opportunities for diverse emerging financial institutions and market participants. To increase diversity across housing finance, Freddie Mac Multifamily launches new correspondent program to help small financial institutions, including minority savings and community development banks, access Freddie Mac capital Did. In 2023, the company established new requirements for multifamily lenders to have at least one correspondent agreement.
To increase opportunities for diverse and emerging multifamily borrowers, Freddie Mac is committed to closing the relationship and information gaps that can hold back emerging industry players as they seek to grow and access capital. I'm here. Through a diverse group of emerging sponsors, Freddie Mac Multifamily helps you grow your industry, build relationships, and build connections to impact the market for years to come.
The company also expanded its developer development.SM The Academy is a program aimed at increasing the number of women and minority-owned developers in underserved communities. In 2023, Freddie Mac will have trained more than 119 developers, including 197 new single-family units and 485 new multifamily units currently under development.
-
Support the construction, preservation and rehabilitation of affordable housing. By further expanding the use of multifamily forward commitments, this is a promise to provide permanent financing for new rental units or major renovations to multifamily properties. The company has committed to raising more than 22,000 units of him through forward commitments in 2023, exceeding its goal for that year. In 2024, Freddie Mac plans to fund his additional 20,000 units through forward commitments.
Freddie Mac also works to maintain rent levels by offering incentives to multifamily borrowers in exchange for commitments in their loan agreements to keep rents on a percentage of their units affordable over time. There is. This is critical to keeping rent predictable and affordable for working families. In 2023, we achieved our preservation goal of more than 3,200 homes. In his third year of the plan, the company has committed to retaining rents on an additional 5,000 of his units.
To maintain its existing inventory of affordable rental housing, Freddie Mac is using multifamily loans to help rebuild affordable workforce rental housing. The company has achieved its goal of renovating 10,000 homes and has committed to funding an additional 10,000 homes in its 2024 plan.
-
Industry and consumer education By providing outreach, resources, and research to expand housing opportunities, especially for diverse homebuyers. The 2023 initiative will help more than 500,000 consumers receive support through education and counseling, 70% of whom identify as people of color. The company also launched a new Spanish version of CreditSmart.® Essentials is a comprehensive financial competency curriculum for consumers.
Freddie Mac's Fair Housing Finance Plan includes a series of measures to increase equity in both the single-family and multifamily housing markets. This ambitious series of initiatives will address disparities in homeownership, strengthen investment within formerly redlined areas, fund the construction and preservation of affordable housing, and help renters The focus is on five core areas: increasing opportunities for children and women, and helping to close disparities among underserved communities. This plan sets goals, outlines actions to achieve those goals, and includes an annual progress report.
For more information, please see our 2024 plan, 2023 progress report, and company fact sheet. Learn more about Freddie Mac's commitment to diversity, equity, and inclusion.
About Freddie Mac
Freddie Mac's mission is to provide homes for families across the country. We promote liquidity, stability, affordability and equity in the housing market through all economic cycles. Since 1970, we've helped tens of millions of families buy, rent and maintain a home. Learn more: Website | Consumer | twitter | LinkedIn | Facebook | Instagram | YouTube
Media contact:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com
