The Federal Housing Finance Agency (FHFA) today announced two partnerships involving Fannie Mae (OTCQB: FNMA), Freddie Mac (OTCQB: FMCC), and the Federal Home Loan Banks (FHLBanks) to expand awareness and liquidity for homeownership across tribal communities.
According to Census Bureau data, 56.7% of Native American households owned their homes between 2015-2019, 15 percentage points lower than White households. Additional data from the Federal Deposit Insurance Corporation found that over 16% of Native Americans had no bank account, the highest of any demographic group.
In one of the new partnerships, the FHLBank of Des Moines will promote a Freddie Mac mortgage product intended to improve credit access for federally recognized Native American tribes. In the other, Fannie Mae will purchase loans originated through the FHLBank Mortgage Partnership Finance (MPF) program — administered by the FHLBank of Chicago — to increase mortgage liquidity for tribal communities.
“With their distinct charters and models for providing liquidity to underserved communities, Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are combining their efforts to expand housing access in tribal communities,” said Director Sandra L. Thompson. “As Native American tribes face unique challenges in addressing their affordable housing needs, this collaboration among FHFA’s regulated entities will increase the impact of programs that offer solutions.”
Thrilled someone is tackling this major issue, next step is to assure housing is available.