In a letter sent to the Federal Housing Finance Agency (FHFA), Senators Sherrod Brown (D-OH), Jack Reed (D-RI), Tina Smith (D-MN), Ron Wyden (D-OR), and Elizabeth Warren (D-MA) urged FHFA to review Fannie Mae and Freddie Mac’s nonperforming loan and reperforming loan sales programs. These programs often result in loans being sold to large investors, who then control whether homeowners are able to stay in their homes.
The Senators expressed concern that these programs may not meet the standard of keeping families in their homes. There is a severe shortage of affordable housing available for aspiring homeowners, so it is critical that the Enterprises remain committed to keeping housing accessible for families.
“With a severe shortage of available and affordable housing for aspiring homeowners, it is critical that the Enterprises remain committed to keeping families in the homes they have and to keeping our housing stock in the hands of individual homeowners, not institutional investors,” wrote the Senators. “Based on data reported from the Enterprises and the Federal Housing Finance Agency (FHFA), it is not clear that the nonperforming and reperforming loan sales programs meet that standard.”
Brown has long fought to keep homes in the hands of communities, not institutional investors. As Chairman of the Senate Banking, Housing, and Urban Affairs Committee, Brown held three hearings and a tenant listening session on the growing role of big investors and private equity companies in the housing market and the harm they cause to aspiring homeowners, renters, and communities. Last year, Brown co-sponsored the Preserving Homes and Communities Act, which would establish additional requirements before certain mortgage loans are sold.
A copy of the letter is available here.
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