Trouble with Fannie Mae and Freddie Mac

The National Housing Trust Fund (NHTF), as established in H.R. 3221, was to receive funding from the Government Sponsored Enterprises (GSEs), Freddie Mac and Fannie Mae.

The FHFA regulator has the authority to suspend contributions to the NHTF/CMF under certain circumstances related to the fiscal distress of the GSEs. If allocating money to the NHTF/CMF contributes to the instability or undercapitalization of the GSEs, or would prevent them from completing a capital restoration plan, then the regulator can suspend the GSEs contributions.

Reason why the current call has changed to the SEVRA assumption.
“Yesterday the House Financial Services Committee kept the 150,000 new vouchers provision proposed in HR 3045 (the SEVRA bill) by defeating the Shelly Moore Capito (R-WV) amendment to limit the number of new vouchers to 20,000. (NLIHC and other organizations are working to secure at least 200,000 new vouchers a year for each of the next 10 years.)” National Low-Income Housing Coalition

The current troubles that the lending firms Fannie Mae and Freddie Mac have caused an adbrupt stand still to the will and drive that the National Housing Trust Fund Bill has drawn to consider.

The purposes of the NHTF are to increase and preserve the supply of rental housing for extremely low and very low income households, including homeless households, and increase homeownership for extremely low and very low income households.

As this current economic crisis is related to that of the il-workings of Fannie Mae and Freddie Mac, the rising number of low-income house-holds are rising above the considered projections that make up the current trust fund budgeting practice.

Currently, administering agencies are to develop, make public, and seek public comment on the state allocation plan. The allocation plan must reflect priority housing needs in the state based on these factors geographic diversity,the applicant’s ability to obligate amounts and undertake funded activities in a timely manner, the extent to which rents are affordable in the proposed project, the duration of the affordable rents in the proposed project, the use of other funding sources in the proposed project, and the merits of an applicant’s proposed eligible activity.

Get in contact with your state adminstrators and see how they stand in regards to the factors of eligibilty to continue federal funding.

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