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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 64 J O U R N A L May 2023 FHFA UPDATES EQUITABLE HOUSING FINANCE PLANS FOR THE GSES T he Federal Housing Finance Agency (FHFA) has updated Fannie Mae and Freddie Mac's (the GSEs) Equitable Housing Finance Plans for 2023, building upon the inaugural plans first announced last year and making adjustments based on initial research and findings. The Equitable Housing Finance Plans are designed to com- plement the initiatives outlined in FHFA's Strategic Plan: Fiscal Years 2022-2026 that promote the Enterprises' safety and sound- ness and foster housing finance markets that provide equitable access to affordable and sustainable housing. "As we celebrate Fair Housing Month and the 55th Anniversary of the Fair Housing Act, we are reminded that every step taken to- wards bringing more equity into the housing finance system is a step in the right direc- tion," FHFA Director Sandra L. Thompson said. "In 2022, the Enterprises helped more than 834,000 households through various actions outlined in their Equitable Housing Finance Plans." Last year, the GSEs released plans to identify and address barriers to sustainable housing opportunities, including goals and actions to advance equity in housing finance for the next three years. Even after the landmark Fair Housing Act of 1968, the racial homeownership gap persists, with homeownership rates for households of color more than 24 percentage points lower than the rate among white households. All plan activities are subject to FHFA's review and oversight of any risks to, or impacts on, safety and soundness. "The actions laid out in this year's Equi- table Housing Finance Plan build upon the work we started last year to give families in underserved communities a more equitable chance to have a quality, affordable place to call home," said Michael DeVito, CEO of Freddie Mac. "We have made meaningful progress over the last year, and we know there is much more to do. The update released today illustrates our commitment to help more families in the years to come." Updates to the Enterprises' 2022-2024 Plans include, but are not limited to: » Inclusion of the Latino Housing Journey and actions to remove barriers experi- enced by Latino renters and homeowners in Fannie Mae's plan; » Enhanced focus on ensuring existing bor- rowers receive fair loss mitigation support and outcomes through monitoring and developing strategies to close any gaps; » Provision of financial capabilities coach- ing to build credit and savings; » Support for locally-owned modular construction facilities in communities of color; and » Increases to the reach of Enterprise Special Purpose Credit Programs to support homeownership attainment and housing sustainability in underserved communities. "Additionally, we're focused on providing housing counseling to address various needs and challenges faced by renters, potential homebuyers, and homeowners," said Katrina Jones, VP of Racial Equity Strategy & Impact for Fannie Mae in a recent Perspectives blog. "After completing over 11,000 counseling sessions in 2022 specifically addressing homeownership needs, we are expanding our efforts this year to help those facing financial hardship and improving access to information for long-term housing safety and stability. We are also working alongside industry partners like HUD to bring compre- hensive counseling opportunities to those in need and to test new counseling services in various parts of the country. These enhance- ments are part of our broader vision to knock down barriers in the housing system." In addition, the GSEs released perfor- mance reports that outlined their progress Government