A group of lawmakers recently forwarded correspondence to the Federal Housing Finance Agency (FHFA), requesting reviews of Fannie Mae and Freddie Mac’s nonperforming loan and reperforming loan sales programs.
U.S. Sens. Sherrod Brown (D-OH), Jack Reed (D-RI), Tina Smith (D-MN), Ron Wyden (D-OR), and Elizabeth Warren (D-MA) signed off on the letter to FHFA Director Sandra Thompson regarding the matter.
“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,” the legislators wrote. “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.”
Since at least 2015, Fannie Mae and Freddie Mac have sold nonperforming and reperforming mortgage loans by the thousands to investors to reduce their retained portfolios.
“The Enterprises must operate in a safe and sound manner while also fulfilling their housing mission,” the legislators concluded. “To ensure that all aspects of the Enterprises’ operations meet this standard, we urge you to conduct a thorough review of the Enterprises’ nonperforming loan and reperforming loan sales programs.”
The lawmakers are encouraging the FHFA to increase public transparency and accountability in the programs, particularly the reperforming loan program, to ensure the program benefits homeowners, not just investors.