Wells Fargo expands SPCP to new metros

Wells Fargo expanded its $10,000 Homebuyer Access grant, a special purpose credit program (SPCP), to 12 additional metropolitan areas as it aims to bridge the homeownership gap for underserved communities. This expansion brings the total number of metros where the program is available to 21. The Homebuyer Access grants are available to homebuyers who earn 120% or less of the area median income in the county where the property is located. New metropolitan areas added to the program include Anaheim, Los Angeles, Oxnard, San Diego, and Salinas in Calif.; Buffalo, N.Y.; Denver, Colo.; Kansas City, Mo.; Memphis, Tenn.; Oklahoma City, Okla; Omaha, Neb.; and Pittsburgh, Pa.

“We are expanding the availability of our Homebuyer Access grant program to additional areas to expand opportunities for low-to-moderate income homebuyers,” said Kevin Reen, head of Wells Fargo Home Lending. “Making these $10,000 grants available in more areas will help increase homeownership opportunities for underserved communities.”

Freddie Mac research shows voucher use limited by cost barriers

Freddie Mac's latest multifamily housing research highlights critical barriers preventing low-income renters from effectively using Housing Choice Vouchers (HCVs). The study examined case studies from Providence, R.I.; Santa Cruz, Calif.; and Jackson, Miss. to analyze voucher accessibility. Key findings showed that voucher use is generally lower in areas with high economic opportunity, high-rent markets experience reduced voucher utilization, and increased voucher amounts may not overcome cost issues in more expensive neighborhoods.

“Freddie Mac’s findings demonstrate that voucher usage is generally lower among areas that provide greater access to opportunity,” said Sara Hoffmann, senior director of Multifamily Research at Freddie Mac. “Our analysis found that high opportunity areas and higher rent areas have both lower voucher usage and a relatively low level of affordable units based on voucher limits.”

FHFA unveils equity and underserved markets plans for GSEs

The Federal Housing Finance Agency (FHFA) released the 2025-2027 Duty to Serve (DTS) Underserved Markets Plans and Equitable Housing Finance Plans (EHFPs) for Fannie Mae and Freddie Mac (the GSEs). Since the Housing and Economic Recovery Act of 2008, Fannie Mae and Freddie Mac must prioritize three underserved markets under their Duty to Serve requirements: Manufactured Housing, Affordable Housing Preservation, and Rural Housing. The new DTS plans will particularly focus on heightened rural community development through expanding construction and secondary mortgage market access, as well as addressing liquidity needs for first-time homebuyers. Freddie Mac has committed to hold six ‘Develop the Developer’ academies in rural regions to help build rural development capacity, while Fannie Mae will focus on enabling rural Community Development Financial Institutions to access secondary markets. FHFA estimates that the 2025-2027 DTS plans expand liquidity to nearly 690,000 renter households and over 90,000 homeowner households. The plans do not emphasize robust data analysis as some comments noted during the open comment period of the draft DTS plans.

The EHFPs, which have been required of the GSEs since 2022, show commitments from both Fannie Mae and Freddie Mac to support first-time and first-generation homebuyers. Fannie Mae’s plan focuses on building credit history for loan underwriting, providing relief for up-front costs of housing, and encouraging interest for property owners to participate in the Housing Choice Voucher program, among other actions. Freddie Mac set a goal to enroll 800,000-1 million renters in on-time rental payment reporting. Fannie Mae committed to purchasing 61,000 loans under Special Purpose Credit Programs (SPCPs) in 2025 and 82,000 loans in 2027, while Freddie Mac committed to purchase 16,000 loans under SPCPs annually. Both GSEs will also enhance their financial and homeownership education materials.

“These new plans underscore the commitment of FHFA and the Enterprises to ensure that the housing finance system responsibly supports borrowers and renters across the country,” said FHFA Director Sandra Thompson. “It is critical that innovative ideas for addressing liquidity needs in underserved markets be implemented and scaled up in rural communities and other areas facing access and affordability challenges.” 

Agencies seek comments on reducing regulatory burden

The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency announced a third request for public comment as part of their ongoing effort to reduce regulatory burden. In this round, the agencies are focusing on three categories: Rules of Procedure, Safety and Soundness, and Securities. The public has a 90-day window to submit comments on these regulations once published in the Federal Register. Additionally, the agencies plan to organize outreach meetings where stakeholders can directly address regulatory requirements. Details of these meetings will be announced as they are finalized.

This initiative, mandated by the Economic Growth and Regulatory Paperwork Reduction Act of 1996, requires the Federal Financial Institutions Examination Council and federal bank regulators to review their regulations every decade.

Conforming loan limits top $1 million for third year

FHFA announced new conforming loan limit values for 2025, with the baseline limit for one-unit properties in most of the United States increasing to $806,500. This represents a 5% increase, or $39,950, compared to 2024. In high-cost areas, where 115% of the local median home value exceeds the baseline, the limit has a ceiling of $1,209,750 for one-unit properties. Notably, the limit surpassed $1 million in 2023. This adjustment reflects the change in average U.S. home prices over the past year.

In an issued statement, the Housing Policy Council argued that the continued expansion of federal backing for mortgage finance exacerbates affordability challenges.

“After a lengthy period where loan limits remained unchanged during and after the Great Financial Crisis, the subsequent rapid rise in house prices has fueled a growth in loan limits that exceeds the growth in household income. As a result, more and more upper-end borrowers have access to federal support for financing mortgages, which puts upward pressure on house prices,” HPC stated.