Freddie Mac and ICE collaborate on loan quality 

Freddie Mac announced it is partnering with Intercontinental Exchange, Inc. (ICE) to provide higher-quality loans as part of the mortgage origination process. The partnership aims to foster more effective service so lenders can assist more borrowers while reducing risk by collaborating with the companies’ automation technologies and solutions. Lenders will be able to quickly and efficiently underwrite mortgage loans beginning at the point of sale. Freddie Mac’s press release notes that analysis shows loans originated by lenders leveraging specific Freddie Mac automated offerings, which Freddie Mac has been expanding over the last two years, are up to four times less likely to produce defects than loans without these technologies.   

“We’re joining forces with ICE to combine our organizations’ unique strengths to help more lenders deliver higher quality mortgages in this challenging market,” said Kevin Kauffman, Freddie Mac Single-Family Senior Vice President of Seller Engagement. “As more lenders consider adopting digital tools to mitigate risk and drive improvement in overall loan quality and portfolio performance, this effort signifies the next level of industry collaboration.” 

“ICE is on a mission to make the path to homeownership as fast, transparent, accessible, and simple as possible,” said Tim Bowler, President of ICE’s mortgage technology division. “Our innovations are targeting core issues associated with the cost and turn times of mortgage origination. We’re proud to collaborate with Freddie Mac on the critical matter of improving loan quality to streamline the housing finance market and help minimize related repurchases.” 

New House task force releases housing affordability plan 



The New Democrat Coalition's Affordable Housing Task Force, in the U.S. House of Representatives, unveiled a new Housing Action Plan that outlines 20 policy recommendations for improving affordable housing and developing a path for both Congress and the Biden-Harris Administration to address housing policy issues. Chair Rep. Norma J. Torres (D-Calif.) and Vice Chairs, Reps. Greg Landsman (D-Ohio), Wiley Nickel (D-N.C.), and Emilia Sykes (D-Ohio) lead the task force, which was formed to combat the challenges of finding and obtaining fair and affordable housing. The Action Plan identifies five key factors in housing to consider: housing supply, permitting and zoning laws, federal financial incentives, the construction workforce, and data collection and transparency. The plan specifically calls for passing the Affordable Housing Credit Improvement Act and the Yes In My Back Yard Act. 

“Overall, we know we must prioritize the development of affordable housing initiatives, enforcement of fair housing laws, increase resources for public housing and local fair housing enforcement agencies, make it easier to build more housing units, and make changes to federal supports for the housing finance ecosystem to make sure communities are equitably served,” the introductory letter to the plan states. “By working together, we can tackle this crisis and make all communities places where everyone has access to safe, decent, affordable housing and the amenities needed to thrive.” 

House Subcommittee discusses homebuyers’ challenges 

The House Financial Services Committee's Subcommittee on Housing and Insurance held a hearing titled "The Characteristics and Challenges of Today's Homebuyers" to examine the current landscape of the single-family home-buying market. Speakers discussed housing supply, inflation, Basel III Endgame, the racial homeownership gap, the single-family rental market, cash buyers, and first-time homebuyers. Less traditional home purchases, such as accessory dwelling units and creative financing, were also highlighted as paths to affordability.   

"Inflation is a tax paid by everyone," said Committee Chair Rep. Warren Davidson (R-Ohio). "And it's unfortunately part of a vicious cycle - a vicious circle that puts even more pressure on the housing market as interest rates go up. Construction costs go up and stay up. And frankly, insurance costs for the home go up and stay up."  

Witnesses for the hearing were Dr. Michael Fratantoni, Chief Economist, Senior Vice President, Research and Industry Technology at the Mortgage Bankers Association; Dr. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®; and Nikitra Bailey, Executive Vice President at the National Fair Housing Alliance. Each witness emphasized housing's impact on the overall economy and on families across the nation who are unable to build wealth while homeownership remains out of reach. The witnesses also noted the persisting racial homeownership gap as a concern.   

“Home buyers who purchased a $350,000 home at 3.5% compared to a 7% mortgage interest rate have an increased monthly payment of $683,” Lautz said during her testimony. “Even with a motivating factor such as a new job or family change, they may be financially unable to make the change.” 

FHFA to host AI-focused TechSprint in July

The Federal Housing Finance Agency (FHFA) announced its second TechSprint, hosted by its Office of Financial Technology, will focus on Generative AI. The in-person team-based problem-solving event, Generative AI in Housing Finance TechSprint, will run from July 22-25 in Washington, D.C. Experts will collaborate to identify use cases or scenarios and associated control measures to support the responsible use of generative AI in the housing finance system. 

The event's central question is: "How might the responsible use of generative AI promote a transparent, fair, equitable, and inclusive housing finance system while fostering sustainable homeownership and rental opportunities?" Applications to participate are due by 5 p.m. ET on May 24.

“Technology has the power to greatly improve our housing finance markets by reducing barriers, increasing efficiencies, and lowering costs, but it requires proper governance,” said FHFA Director Sandra Thompson. “FHFA’s second TechSprint will bring experts together to explore the role generative AI can play in an innovative and sustainable housing finance system.”

OCC opens registration for Project REACh Summit

The Office of the Comptroller of the Currency (OCC) announced that registration is open for its Project REACh Financial Inclusion Summit on May 29-30. REACh stands for Roundtable for Economic Access and Change. OCC will host the event at its Washington, D.C. headquarters. Acting Comptroller Michael J. Hsu will give remarks, and panels will include representatives from large banks, minority depository institutions, trade organizations, and community groups. Registration is required and will be open until May 15 or until all spaces are filled. 

New report highlights human trafficking survivors’ housing needs

HUD has issued a groundbreaking report to Congress, focusing on the housing needs of survivors of human trafficking who are experiencing homelessness or housing instability. The report, "Housing Needs of Survivors of Human Trafficking Study," is the result of extensive stakeholder engagement and collaboration over 18 months, drawing insights from survivors of both labor and sex trafficking, as well as frontline service providers.

Under the leadership of Fudge and the Biden-Harris Administration, HUD is prioritizing the housing needs of trafficking survivors, aiming to build trust, streamline access to services, and eliminate discriminatory barriers in housing. "This report confirms what we at HUD know well: we cannot take a one-size-fits-all approach to affordable housing," HUD Secretary Marcia Fudge said.

The report highlights various challenges survivors face in accessing housing assistance and services. These include the essential need for housing and service providers to build trust and the overwhelming demand for housing assistance compared to available resources. Additionally, the report identifies complexities and disconnects within the current housing assistance systems, making navigation difficult for survivors and potentially retraumatizing them through repeated screening and intake processes. Discrimination and exploitative behavior by housing providers also present a significant obstacle to accessing and maintaining safe housing, even when housing assistance is available. 

To address these challenges, the report advocated for trauma-informed and survivor-centered program models that recognize survivors' diverse backgrounds, experiences, and needs. HUD's efforts align with broader initiatives to reduce barriers to housing access and combat discrimination, ensuring survivors receive the support and resources necessary for stable and safe housing.  

HUD announces 2024 Innovative Housing Showcase

HUD's Innovative Housing Showcase will return to the National Mall June 7-9, following successful previous editions. HUD intends the event to spotlight pioneering solutions and advancements in housing design, technology, and sustainability. Expected to draw over 4,000 attendees, including policymakers, housing industry representatives, media, and the public, the Showcase will feature interactive exhibits highlighting full-sized prototype homes and innovative building technologies. 

The event's main objective is to raise awareness of innovative and affordable housing designs and technologies that can address key challenges in the housing sector. HUD hopes these solutions will increase housing supply, lower construction costs, enhance energy efficiency and resilience, and reduce housing expenses for owners and renters. 

"The Innovative Housing Showcase is a testament to our nation's unwavering commitment to moving the housing sector forward," said HUD Secretary Marcia Fudge.

"HUD and its Office of Policy Development and Research have supported innovation in housing and building technologies since the beginning, and these investments have contributed to changes in building codes, improvements in industry practice, and most importantly, lower housing costs for American families," said Solomon Greene, HUD's Principal Deputy Assistant Secretary for Policy Development and Research.

HUD issued a Notice in the Federal Register inviting exhibitors to showcase innovations for the event. The proposal deadline is March 29. The agency will announce more details about exhibitors and programming for the Showcase in May.  

Agencies extend applicability date of some FBAA provisions of Community Reinvestment Act final rule

The three major bank regulators jointly issued a new interim final rule that extends the applicability date deadline for certain assessment area provisions of the Community Reinvestment Act (CRA) rule issued in October. The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency extended the applicability date of the facility-based assessment areas (FBAA) and public file provisions from April 1, 2024, to January 1, 2026, so that provisions with other substantive parts of the 2023 final rule are aligned. The agencies also are accepting comments on the extended applicability date that are due 45 days after publication in the Federal Register, ultimately giving banks more time to adapt to the new CRA framework.