Fannie And Freddie Will Soon Start Funding The Housing Trust Fund
The Federal Housing Finance Agency (FHFA), the federal regulator of Fannie Mae and Freddie Mac, announced that it would lift its suspension of mandatory funding to the Housing Trust Fund (HTF) and the Capital Magnet Fund (CMF). These two programs were created by Congress in 2008 to increase the supply of affordable housing in the U.S. As originally envisioned, both programs would receive funding through a modest assessment on Fannie’s and Freddie’s ongoing business. FHFA suspended those obligations in 2008 when Fannie and Freddie were put into government conservatorship.
This long-awaited announcement to capitalize the Housing Trust Fund is the most significant federal initiative for affordable housing production in many years. So what exactly does this mean? How will the program work? How much money will be available for housing? And who will these funds serve?
Enterprise Community Partners has provided an excellent synopsis of the specifics of the bill: blog.enterprisecommunity.com/2014/12/freddie-funding-housing
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