Housing and lending groups warn FHFA against rent control

NHC joined a broad coalition of 18 associations representing housing providers and lenders, warning Federal Housing Finance Agency Director Sandra Thompson that mandatory rent control and stabilization policies would increase rents, reduce the capital needed to boost housing supply, and ultimately hurt current and future renters. FHFA is considering changes for Fannie Mae- and Freddie Mac-backed multifamily properties.

The groups asked the agency to reject imposing rent regulation as a condition of Fannie Mae and Freddie Mac-backed financing and instead create additional voluntary incentives within the Enterprises' programs. The letter states that “research has proven that mandatory rent control is a failed policy, which does nothing to alleviate the root causes of housing affordability issues—namely the fact that our nation’s housing supply has not kept pace with the needs of our growing population.” The groups also argued that “rent regulation is not equitable as it does not target lower- and moderate-income renters that are in most need of assistance, support, and stability.”

In a recent letter to FHFA in response to the agency's request for information about tenant protections for multifamily properties with Fannie Mae and Freddie Mac-backed financing, NHC acknowledged the need to enhance rental housing affordability and prevent evictions but cautioned against excessive measures that might lead to unintended adverse outcomes. NHC suggested a balanced approach that incentivizes housing production, protects tenants' rights, and promotes responsible landlord behavior. NHC's recommendations included creating incentives for longer notice periods for rent increases, implementing just-cause eviction standards similar to the good cause requirements for the Low-Income Housing Tax Credit program and HOME Investments Partnership program, providing educational resources for renters funded by the government, and supporting research into eviction diversion programs.

Tenant advocates call for federal tenant protections

Advocates led by the National Low Income Housing Coalition (NLIHC) have expressed strong support for federal tenant protections in response to FHFA’s Request for Input regarding multifamily tenant protections. NLIHC spearheaded several letters to FHFA recommending tenant protections including a coalition letter, endorsed by 352 organizations, as well as submitting its own more detailed letter informed by tenants who participated in NLIHC’s Renter Protections Working Group. NLIHC’s 2022-2023 Tenant Leader Cohort, composed of housing justice advocates with lived experience, submitted a comment letter, as did the Partnership for Just Housing (PJH), an organization convened by NLIHC and four other organizations, advocating for fair treatment of individuals with criminal-legal system involvement. 

Wells Fargo launches new down payment program

Wells Fargo Home Lending announced a new initiative offering $10,000 Homebuyer Access grants to eligible homebuyers currently living in or seeking to purchase homes in select underserved communities across eight metropolitan areas. These grants, available under the company's Special Purpose Credit Program (SPCP), will assist homebuyers by contributing towards their down payment. Doing so alleviates one of the significant barriers to homeownership. 

"Homeownership is central to building wealth but has been out of reach for many minority families as a result of systemic inequalities in housing and finance," said Kevin Reen, head of Wells Fargo Home Lending. "One of the biggest barriers to achieving homeownership is coming up with the down payment. We're proud to make this dream a reality for families through our new $10,000 Homebuyer Access grant."

The grants are available to those with combined incomes of 120% or less of the area median income in the county where the property is located. Borrowers can use the grants for down payments on Wells Fargo fixed-rate conventional loans intended for the homebuyer's primary residence. Borrowers can combine the Homebuyer Access grants with other programs. The program's initial launch covers these metropolitan areas: Minneapolis-St. Paul, Philadelphia, Dallas-Ft. Worth, Washington-Arlington, Baltimore, Atlanta, Charlotte, and New York-Newark-Jersey City. 

Fed seeks experts for Insurance Policy Advisory Committee

The Federal Reserve Board (the Fed) announced it seeks experts in life, property and casualty, and reinsurance matters to join its Insurance Policy Advisory Committee. The committee, consisting of 21 members with diverse professional backgrounds, advises on insurance-related issues and consists of individuals from fields like insurance accounting, actuarial science, academia, and policyholder advocacy. The Fed will select seven individuals annually to serve staggered three-year terms and may also appoint members to fill any unexpired vacancies. Those interested can submit a Statement of Interest until Oct. 2. The Fed expects to announce member appointments later this year.

HUD designates $869K to PHAs for foster youth housing

HUD announced $869,000 in funding to 14 public housing authorities across ten states to support Foster Youth to Independence initiatives (FYI). These initiatives assist former foster youths at risk of experiencing homelessness. Awarded on a rolling basis, HUD will make 86 housing vouchers available to individuals aged 18-24 within 90 days of leaving or who have already left foster care. 



"The transition to adulthood is difficult to navigate on its own. We need to provide youth who have aged out of foster care with housing resources, otherwise we are leading them towards more struggles," said HUD Secretary Marcia Fudge. 

loanDepot's Gatling honored with HousingWire's "Women of Influence" award

Mosi Gatling, Sales Manager at loanDepot, Inc., received HousingWire's "Women of Influence" award for her successful work serving traditionally underserved borrowers and advocating for equitable homeownership. HousingWire's selection committee picks "Women of Influence" recipients based on their professional achievements, personal success, community outreach, client impact, and contributions to the mortgage industry.

Gatling, known for her top-ranking loan origination performance, emphasizes helping underserved communities achieve homeownership through financial literacy workshops and responsible credit guidance. She also leads a diverse team of mortgage professionals and actively contributes to industry discussions on closing the minority housing gap. 

"Early in my career, I noticed a lot of potential buyers were missing out on the chance to become homeowners. Either they didn't think it was possible or they didn't have anyone to turn to for help," said Gatling. "That gave me purpose and now I take pride in providing the inspiration and support for many in underserved communities to believe in their ability to achieve the dream of homeownership."