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HUD, FHFA To Collaborate On Fair Housing, Fair Lending Enforcement

Aug 13, 2021

Sign Memorandum Of Understanding To Share Information, Coordinate Investigations

KEY TAKEAWAYS
  • First-of-its-kind agreement allows the two federal housing agencies to work more closely together to enforce fair housing & fair lending regulations.

Two federal housing agencies have signed a first-of-its-kind agreement to collaborate on administering and enforcing fair lending and fair housing laws.

The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) announced Thursday the agencies had entered into a Memorandum of Understanding (MOU) that will focus on enhancing their enforcement of the Fair Housing Act, which HUD is primarily charged with administering and enforcing, and their oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, all of which FHFA regulates.

The MOU strengthens the two Agencies’ ability to enforce fair housing and fair lending requirements by promoting information sharing, coordination on investigations, compliance reviews, and the ongoing monitoring of Fannie Mae & Freddie Mac. The Agencies said they anticipate that the MOU will lead to stronger oversight that will help advance vigorous fair housing enforcement that can begin to redress the United States’ history of discriminatory housing practices.

“Today’s signing is an important and historic step to advance and strengthen the enforcement of our nation’s fair housing and fair lending requirements,” said HUD Secretary Marcia L. Fudge. “FHFA oversees entities that have significant control over a large share of the mortgage market. Stepping up our collective fair housing oversight of their activities will make an enormous impact on lives and communities.”

She added that the agencies are “prioritizing the work required to remove barriers that have created separate and unequal neighborhoods and limited access to housing opportunity and wealth building. I look forward to working with FHFA to make a meaningful impact in this space.”

FHFA Acting Director Sandra L. Thompson said her agency does not tolerate housing discrimination. “Today’s MOU allows FHFA and HUD to share information and resources to improve fair lending oversight over the mortgage finance system. I am pleased to work with Secretary Fudge on the important work of fulfilling the Fair Housing Act’s promise of equal access to safe, decent, and affordable housing for all Americans.”

The FHFA regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $7.2 trillion in funding for the U.S. mortgage markets and financial institutions. For more, visit www.FHFA.gov.

More information about HUD and its programs is available at www.hud.gov.

About the author
David Krechevsky was an editor at NMP.
Published
Aug 13, 2021
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