Publication Date

October 2014

Author(s)

Kevin A. Park

Client/Funder

Ford Foundation

Overview

The government-sponsored enterprises Fannie Mae and Freddie Mac by their charters are encouraged to ensure access to credit for lower-income households and neighborhoods.

Research from the UNC Center for Community Capital and others demonstrates that such lending is safe for both borrowers and lenders. Nevertheless, the Enterprises typically lag the market in the share of business devoted to under-served borrowers. This is partly due to their affordable housing goals being set too low.

In its response to the Federal Housing Finance Agency’s proposed affordable housing goals, the center recommends the agency raise its low-income home purchase goals for 2015-2017.