A major point of disagreement involves proposed changes to affordable housing goals, possibly replacing them with a fee-based program. Affordable Housing as a Sticking PointAlthough affordable housing goals are a relatively small part of the GSEs’ mandate, they are a huge point of political conflict – so we put real numbers to ideas often discussed in abstract percentages (here are county-by-county breakdowns). By buying these mortgages, Fannie and Freddie aim to encourage lending to low-income borrowers and communities who otherwise might have more limited access to financing on favorable terms. It’s easy to get lost in all these percentages, so let’s put some numbers behind them, focusing on the largest category, loans to low-income borrowers. In fact, rural and heartland communities are likely affected the most by affordable housing goals and could see the biggest impacts if the goals are eliminated in any reform legislation.

Source: Forbes February 15, 2018 21:33 UTC