CFPB, Justice Department clarify civil rights protections 

The Consumer Financial Protection Bureau (CFPB) and Justice Department issued a joint statement on consumer protections for citizens based on national origin, race, and other characteristics covered by the Equal Credit Opportunity Act (ECOA), regardless of immigration status. The reminder is aimed at financial institutions that have reportedly been denying consumers credit cards, auto and student loans, and other types of loans based on their immigration status. These denials occur even when consumers have strong credit profiles and are otherwise qualified to receive the loans. The announcement acknowledges that while the ECOA does allow creditors to consider immigration status when appropriate to determine creditors’ ability to repay, any overbroad and unnecessary reliance on the status may violate the Act. It further notes that blanket policies denying credit to individuals based on their immigration status are not shielded from liability by ECOA under federal and state civil rights laws. 

“Fair access to credit is crucially important for building wealth and strengthening household financial stability,” said CFPB Director Rohit Chopra in a press release. “The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.” 

“Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses, or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This guidance reminds lenders that denying someone access to credit based solely on their actual or perceived immigrant status may violate federal law.” 

New keynote speaker announced for Solutions for Affordable Housing

On December 7, the National Housing Conference will host its Solutions for Affordable Housing convening at the National Press Club in Washington, D.C. National Economic Council Director Lael Brainard will join attendees to discuss the work the Biden Administration is doing to increase affordable housing for all Americans including the Administration’s Housing Supply Action Plan and work on racial equity. 

Housing groups seek action on interest rate, bond spread 

Three housing stakeholders sent a letter to National Economic Council Director Lael Brainard and Treasury Secretary Janet Yellen regarding high mortgage rates relative to Treasury bonds, often called the 30/10 spread. Community Home Lenders of America, the National Association of REALTORS®, and Independent Community Bankers of America signed the letter. The organizations called on the Administration to reduce the large spread, which sits at 300 basis points, compared to the historic normal of around 150 basis points. 

The groups make two key recommendations. First, that the Federal Reserve shift its policy to maintain its stock of mortgage-backed securities (MBS) and suspend runoff until liquidity and the 30/10 spread stabilizes. Secondly, to amend the Preferred Stock Purchase Agreements that govern Fannie Mae and Freddie Mac to temporarily purchase their own MBS or Ginnie Mae’s MBS for a defined period. 

“While federal regulators do not have direct influence on many local construction issues, they can affect affordability for homebuyers and homeowners through the 30/10 spread,” the letter reads. “Our groups simply urge action to address the strain on liquidity in the market for MBS through the purchase and holding of 30-year fixed rate mortgages. Doing so will help ease the nationwide affordability and lending difficulties while addressing servicing and loss mitigation challenges.” 

HUD announces $212 million for persons with disabilities

The U.S. Department of Housing and Urban Development (HUD) unveiled a $212 million funding opportunity to expand affordable housing options and supportive services for individuals with very-low and extremely-low-incomes with disabilities. HUD targeted the initiative at participants in the Section 811 Supportive Housing for Persons with Disabilities program, which creates, subsidizes, and offers supportive services for rental housing to cater to the specific needs of this vulnerable population. 

“Every American should have the ability to live in affordable housing that caters to their needs. Unfortunately, today, far too many housing options are inaccessible to those with disabilities – and those with the appropriate accommodations are often too expensive,” said HUD Secretary Marcia Fudge. 

HUD divided the funding into two components. First, through the Section 811 Capital Advance/Project Rental Assistance Contract program, $106 million is allocated to provide capital advances for developing new affordable housing units or rehabilitating existing ones. This includes project rental subsidies to ensure that homes remain affordable. Secondly, the Section 811 Project Rental Assistance program allocates another $106 million to state housing agencies and other relevant organizations. This funding will provide project rental assistance, covering the gap between tenants’ contributions to rent payments and the HUD-approved rent for eligible tenants. 

“The goal is to provide people with disabilities the opportunity to live with dignity and independently within an integrated community that provides them with access to appropriate supportive services that they choose,” said Ethan Handelman, HUD’s Deputy Assistant Secretary for Multifamily Housing Programs. 

Agencies announce Lead Poisoning Prevention Week

HUD, the Environmental Protection Agency, and the Centers for Disease Control and Prevention announced National Lead Poisoning Prevention Week (NLPPW), which runs Oct. 22-28. “While HUD has worked with communities nationwide to make strides in reducing lead poisoning, thousands of children are still at risk of lead exposure. This week must be a reminder that our work is not done until no child in America suffers from lead exposure,” said HUD Secretary Marcia Fudge.  

This year's NLPPW theme is “Together, we can prevent lead exposure,” aimed at spreading educational awareness about lead exposure dangers. Partners can tailor information around the three key messages: Get the Facts, Get Your Child Tested, and Get Your Home Tested. Available materials include fact sheets, event ideas, and social media marketing tools. “Lead poisoning is not only a housing issue, it is an issue of health equity and addressing it is a top priority for the U.S. Department of Housing and Urban Development,” Fudge said.