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56 challenging during a transition. is staff has really stepped up and provided support in every single way possible, we didn't miss a beat. One of the first things we did was remove the Adverse Market Refinance Fee [Which was announced on July 16, 2021 – Ed.]. is fee was put in place to cover pandemic-related losses. At the time the fee was announced, losses to the Enterprises were unknown. e good thing is that the Enterprises didn't have to absorb the anticipated losses. Enterprise loans performed well, both single- and multi- family. When we eliminated the fee, borrowers were better able to take advantage of the low interest rate environment. at was one of the first actions that we took, and it was a win- win: a win for the Enterprises and a win for borrowers because sellers were able to pass through the savings to borrowers. e other thing we've been proud of is our request for the Enterprises to submit Equitable Housing Finance plans. e purpose of these plans is to identify and address barriers to fair and sustainable housing opportunities. We asked the Enterprises to focus on providing liquidity in additional areas that are hard to serve. As you all know, it's easy to do the daily bread-and-butter loans. But we want to focus the Enterprises on providing liquidity in areas that are harder to serve, especially targeting low- to moderate-income communities, underserved communities, and particularly communities of color. We already have the Duty to Serve plans that focus on rural areas, affordable housing preservation, and manufactured housing. And we have the Enterprise Affordable Housing Goals that focus the Enterprises on low- to moderate-income purchases and refinances, as well as low-income areas. But the Equitable Plans were something new, and we were excited about having the opportunity to have the Enterprises look at these issues, take advantage of some of the lessons that have been learned from the last financial crisis, and apply that information toward trying to provide liquidity in additional areas that are hard to serve. e Equitable Housing Plans are going to detail how the Enterprises can promote equity within housing finance, specifically focusing on closing the racial homeownership gap and supporting formerly redlined communities. A house is probably the single largest asset that many people own, and there's a huge equity gap we believe can be closed through homeownership. We're hoping that the Equitable Housing Plans will be helpful in that respect. One other thing I'd like to highlight is the announcement that Fannie Mae is considering including rental payment history in their risk assessment underwriting processes. With this update, borrowers are going to have the benefit of positive rental payment history being included in underwriting decisions. It's groundbreaking because, as you know, in many households rent is the single largest monthly expense. ere isn't any reason for someone who's making timely rent payments to not have those included in the underwriting calculations. Certainly, I think the way we are assessing the ability to repay and the willingness to repay ought to be taken into consideration. I do want to make clear that rental payment consideration is not going to be the only factor, it's going to be an additional factor. What are your top priorities for FHFA over the next few years? What sort of legacy do you hope to leave behind once you eventually depart FHFA? at's a great question. We just released a draft Strategic Plan for public input in February, and the high-level priorities are outlined there. ose three priorities include securing the safety and soundness of our regulated entities, fostering a sustainable and equitable housing finance system, and serving as responsible stewards of our Agency. Internally at FHFA, we want to make sure that we have a culture of dignity, inclusion, and respectful accountability. Let me start with item number one, securing the safety and soundness of our regulated entities. I worked at the FDIC for about 23 years, and in my last seven years there, I served as the head of risk management supervision. So, safety and soundness are important to me. What I want to do is make sure that the public at large has confidence in Fannie Mae, Freddie Mac, and us as their regulator. ey certainly are not the Enterprises that existed in 2008, when they were placed into conservatorship. ere were lots of questions about housing finance at the time, and about the mortgage market, specifically. We had loan products that were predatory. ere were loans the borrowers didn't understand and couldn't afford. Borrowers' ability to repay was questionable throughout the Great Recession, with all the associated delinquencies and foreclosures. As such, confidence in the mortgage market and the mortgage system is important now more than ever. And I do believe that if we have a sound regulatory structure in place and we're executing against that as regulator, that goes a long way towards building public confidence, and that's important to me. I want the Enterprises to be as financially strong as they possible. I would love to see them continuing to retain earnings and build capital and be in a strong position by the time that my tenure as Acting Director or Director (if confirmed) ends. We're working towards that goal every day. Ensuring a sustainable and equitable housing finance system is also important. We've had conversations for years about underserved areas, and, in particular, rural areas. ere are many challenges, ranging from appraisals and valuations to making sure that certain areas have liquidity and that borrowers can have a level playing field and broad access to the programs that Fannie Mae, Freddie Mac, and the Federal "There isn't any reason for someone who's making timely rent payments to not have those included in the underwriting calculations." Cover Story By: David Wharton