Equitable Housing

Finance Plan
Advancing greater 

housing equity

America’s housing finance system plays a key role in providing housing for millions 

and, for many, it serves as a critical means of wealth generation. But it is not working 

for enough of America’s people.

This document, Fannie Mae’s Equitable Housing Finance Plan, puts forward a series 

of actions designed to help change that.

The goal of this Plan is to advance greater equity 

in America’s housing finance system, its practices, 

and its outcomes. 

It is a goal demanded by our mission, embedded in the spirit of our Charter, and 

backed by the dedication of our employees. Indeed, our mission to facilitate 

equitable and sustainable access to homeownership and quality affordable rental 

housing across America necessarily entails reducing housing’s racial inequities.

Some of these inequities are rooted in historical and present-day disparities in access 

to mortgages. Others, however, result from long-standing socio-economic differences 

that have been exacerbated in recent years by modest wage growth, rapid growth in 

rents and home prices, a pandemic, growing divides in wealth accumulation, and the 

crisis-level shortage of affordable housing supply. In fact, the current lack of homes 

affordable to low- and moderate-income (LMI) households to purchase or rent is 

perhaps the most important structural barrier to housing equity in the United States.

Fannie Mae can’t build new homes, but we can knock down barriers standing in the 

way of greater equity in housing. We can do more to help underserved consumers 

attain and, importantly, sustain homeownership and quality rental housing. We 

can knock down barriers within mortgage, rental, and ownership processes that 

unnecessarily challenge consumers, especially those that disproportionally burden 

Black families. We can continue to enhance renter assistance and homeownership 

education programs, as well as loan servicing and loss mitigation practices, to ensure 

more Black families retain their homes after they buy or rent.

We will measure this Plan’s success by how many of those barriers we knock down, 

and by who benefits when they are removed. Across almost every area, the key to 

lasting success will be strong partnerships with the other key stakeholders of our 

housing finance system. Alone there is little that any of us can accomplish to advance 

greater equity in housing — working together, we can accomplish a great deal.

© 2022 Fannie Mae Equitable Housing Finance Plan 2
Well before the directive for this Plan, Fannie Mae had launched programs to 

alleviate discrete but meaningful challenges faced by Black and other underserved 

households seeking stable, affordable housing. Among these were:

• A groundbreaking change to Desktop Underwriter®1

 (DU®), Fannie Mae’s 

market-leading automated underwriting engine, to consider positive rental 

payment history for eligible borrowers. We believe this change will increase 

opportunities for homeownership for the approximately 20% of the U.S. 

population who have little to no established credit history — even though they 

may have a history of making on-time rental payments. This is an example of 

how to safely and soundly serve qualified first-time homebuyers, including 

people of color, who have historically been excluded from mortgage credit.

• The expansion of our education and homeowner/renter assistance efforts 

through the launch of Know Your Options, Here to Help, and HomeViewTM.

• Renewed engagement with housing industry participants to diversify 

the housing ecosystem, including the Future Housing Leaders® program.

• The creation of RefiNowTM to help address the persistent racial and 

income disparities in refinance take-up rates for existing homeowners.

These initiatives are only a start. Under the auspices 

of this plan, Fannie Mae is prepared to do more. 

And we will.

I want to thank the many people across our company for all they have done to write 

this Plan — and, more importantly, for all they will do to execute it, working with our 

many partners across housing.

David C. Benson

President and Interim CEO

Fannie Mae

1 Desktop Underwriter® (DU®) — the industry-leading underwriting system — helps 

lenders efficiently complete credit risk assessments to establish a home loan’s 

eligibility for sale and delivery to Fannie Mae with easy-to-use, powerful tools.

© 2022 Fannie Mae Equitable Housing Finance Plan 3
© 2022 Fannie Mae Equitable Housing Finance Plan 4

DISCLAIMER: Implementation of the activities and objectives in Fannie Mae’s 

Equitable Housing Finance Plan may be subject to change based on factors including, 

without limitation, FHFA review for compliance with Fannie Mae’s statutory charter, 

specific FHFA approval requirements and safety and soundness standards, FHFA 

guidance and directives, regulatory requirements, Senior Preferred Stock Purchase 

Agreement obligations, and adverse market or economic conditions, as applicable.
Table of Contents

Introduction ................................................................................................................................................ 6

A responsibility rooted in Fannie Mae’s history and Charter ........................................................................................ 7

A focus on Black homeowners and renters .......................................................................................................................... 8

The potential of SPCPs in addressing racial inequities in housing finance .............................................................. 10

Our Actions: Solutions Rooted in the Black Housing Experience ..................11

The Housing Journey .................................................................................................................................................................. 12

Action 1: Pilot rental payment reporting across the multifamily industry to help Black renters with no credit score 

establish a credit history and help those with low credit scores to increase them. ............................................... 14

Action 2: Pilot options to defray and/or decrease the cost of renter security deposits. Decreasing renter security 

deposits would help Black renters qualify for quality rental housing and help them increase their savings. ........ 15

Action 3: Build and Launch Fannie Mae First-Time Homeownership Education Curriculum that aims to provide 

consumers with education on the full spectrum of the homebuying process. ...................................................... 18

Action 4: Execute SPCP Pilots to help support the expansion of homeownership eligibility and availability of down 

payment assistance (DPA), while exploring ways to reduce SPCP participation hurdles for lenders. .................... 20

Action 5: Expand Eligibility and Access for credit-invisible borrowers through automated underwriting enhancement 

and positive rental data implementation to support the expansion of eligibility for Black consumers. ............... 22

Action 6: Enhance Eligibility & Underwriting via Rental Reporting to Credit Bureaus to support the expansion 

of eligibility for Black consumers. ........................................................................................................................ 24

Action 7: Execute SPCP Pilot to support the reduction of borrower closing costs for Black homebuyers via appraisal 

products, appraisal reimbursements, and/or title products. ................................................................................ 25

Action 8: Reduce Closing Costs for Black consumers to help support the removal of the barrier of lack of sufficient funds 

for closing (down payment plus closing costs) faced by Black homeowners and prospective homeowners. ...... 24

Action 9: Launch Closing Cost Calculator Tool .................................................................................................................... 28

Action 10: Valuation Modernization aims to support an equitable appraisal process for Black households and 

communities of color. ......................................................................................................................................... 29

Action 11: Expand Appraiser Diversity Initiative (ADI) to attract new entrants to the residential appraisal field, 

overcome barriers to entry (such as education, training, and experience requirements), and foster diversity, 

which we believe will help to reduce appraisal bias against Black homebuyers, homeowners, 

and communities over the long term. ................................................................................................................ 31

Action 12: Expand Future Housing Leaders® (FHL) to increase the representation of Black people in the housing 

industry to improve access to economic opportunities while creating an industry that better reflects 

the diversity of the nation. .................................................................................................................................. 33

Action 13: Test adding ongoing education and counseling support to one or more SPCP pilots to strengthen borrower 

housing stability over time. ................................................................................................................................ 35

Action 14: Test add-on features to one or more SPCP pilots aimed at strengthening ongoing borrower stability 

by helping borrowers deal with unexpected expenses and repairs, or temporary disruptions to income. ............. 36

Action 15: Expand counseling services for borrowers and renters facing hardship. ............................................................ 37

Action 16: Provide ongoing oversight of Servicer Forbearance/Loss Mitigation efforts. ......................................................... 38

Action 17: Provide climate analytics to empower communities with data, enabling them to make a stronger case 

for change and resources. .................................................................................................................................. 39

Fannie Mae Considerations and Potential Constraints .......................................... 40

Data & Research Considerations ............................................................................................................................................. 40

Outreach Considerations .......................................................................................................................................................... 40

Implementation Considerations ............................................................................................................................................. 42

Appendix ......................................................................................................................................................44

© 2022 Fannie Mae Equitable Housing Finance Plan 5
Introduction

In September 2021, the Federal Housing Finance Agency (FHFA) directed Fannie Mae 

to prepare a three-year plan to “advance equity in housing finance.” This Enterprise 

Equitable Housing Finance Plan would include: 

• An identification and summary of barriers to sustainable 

housing opportunity either directly related to the Enterprise’s 

actions or barriers in the housing market that can 

reasonably be influenced by the Enterprise’s actions.

• Objectives and specific measurable goals for Charter 

Act-compliant actions to address these barriers.

• A plan of meaningful actions for the next three-year 

period to address these barriers.

• A summary of consultations conducted by the Enterprise 

with underrepresented and affected groups and 

communities in preparing its plans.

FHFA also asked that Fannie Mae include goals and meaningful actions 

to address two specific challenges:

• Reducing the racial or ethnic homeownership gap; and

• Reducing underinvestment or undervaluation in formerly 

redlined areas that remain racially or ethnically concentrated 

areas of poverty or otherwise underserved or undervalued.

This document serves as our initial response to this request. As the housing inequities 

in our nation are deep and long-standing, requiring years — if not decades — 

of sustained attention and effort to correct, it will surely not be our last. 

© 2022 Fannie Mae Equitable Housing Finance Plan 6
A responsibility rooted in 

Fannie Mae’s history and Charter

Fannie Mae was part of the foundation upon which the modern U.S. middle class 

was built. The Enterprise arose out of an intense period of policy experimentation 

during the Great Depression designed to insulate housing from short-term 

disruptions in the credit and capital markets. The company ultimately became a 

pillar of the social infrastructure put in place in the early 20th century that expanded 

opportunities in housing, education, and the broader post-World War II economy. 

However, the sad truth of this history is that much of that social infrastructure, by 

design, neglect, or indifference, did not include Black Americans — including parts of 

the social infrastructure supporting housing. 

Even as Fannie Mae was being created, in 1938, the Federal Home Owners’ Loan Corp. 

(HOLC) was publishing maps of major metropolitan areas around the country showing 

zones, shaded red, deemed high-risk or “hazardous” to mortgage lenders. Thus, 

redlining, the practice of allocating mortgage credit along racial lines, was adopted, 

de jure, by the federal government. 

Though it has been outlawed for more than 50 years, redlining’s ill effects endure.

Across our country, communities divided by class and color that suffered from a 

discriminatory past continue to suffer a persistently diminished present, with housing 

at the crux of the divide. 

Homeownership rate by household income, 2019

Source: Fannie Mae computations from 2019 American Community Survey PUMS data

© 2022 Fannie Mae Equitable Housing Finance Plan 7
• The Black homeownership rate is 42%, about 30 points lower than 

the white homeownership rate. That’s about where it was 50 years 

ago. Black homeownership rates have fallen since 2004.2

• The gap between white and Black homeownership equates to about 

4.7 million Black households.3

• This disparity is a primary driver of the staggering difference in household 

wealth across racial groups. In 2019, the median white household held 

$188,200 in wealth, which was 7.8 times that of the typical Black household.4

Because of redlining, the regulated and subsidized housing finance system was closed 

to whole swaths of the Black community. This, combined with numerous other racist 

or discriminatory practices in housing, employment, and education, contributed to 

decades of disinvestment. Black people were free to want the American Dream, but 

largely denied the means to have it. The gap in generational wealth between white and 

Black populations today is rooted in this discriminatory past. 

Ignoring this truth is not defensible, nor is failing to redress it. The job of doing so 

belongs to Fannie Mae, just as it does to many other stakeholders throughout the 

housing ecosystem. The urgency and importance of this challenge drives the choices 

embedded in this Plan, particularly its focus on Black homeowners and renters. 

A focus on Black 

homeowners and renters

The initial focus of our Plan will be on the needs of Black 

homeowners and renters. The rationale for this choice is 

straightforward. To meaningfully address inequities in the 

housing system caused by past housing practices, we are 

focusing on Black homeowners and renters, a population 

where those inequities are particularly profound. 

While our solutions will seek to address the effects of discrimination against 

Black homeowners and renters, they will benefit other underserved populations, 

as well. As our Equitable Housing Finance Plan matures and evolves, in the next 

three years and beyond, we will expand our focus to the challenges faced by 

other populations who have been historically underserved by the housing finance 

2 2019 American Community Survey and the 2019 Current Population Survey/Housing Vacancies and Homeownership Survey.

3 2019 American Community Survey.

4 Survey of Consumer Finances 2019.

© 2022 Fannie Mae Equitable Housing Finance Plan 8
system, including Latino people and other groups who by virtue of their race, 

ethnicity, or geographic location are underserved by the housing and mortgage 

finance system. We will leverage successful solutions from our first three years and 

create ways to address the unique issues of these groups. 

The list of well-documented challenges faced by Black people, particularly those 

with low incomes, in securing equitable access to affordable, stable housing is 

long. Just a sampling: 

• Black homeownership is the lowest of all racial groups in 

the United States, and the Black homeownership gap is not 

improving. According to one recent Urban Institute study, 

absent intentional measures the gap between white and Black 

homeownership rates will widen in the next two decades.5

• Black families are less likely to have the wealth needed to purchase 

and sustain homeownership. As noted above, the typical white 

family has nearly eight times the wealth of the typical Black 

family and five times the wealth of the typical Latino family. 

• Black renters face a higher likelihood of renting where they experience 

higher cost burdens, fees, and discriminatory renting experiences. 

• When Black families apply for a mortgage, their loan applications 

are denied 29% of the time, versus 17% for white families.6

• Black homeowners are more likely to pay higher closing costs7 

and experience biases in the appraisal process that could lead 

to under-valuation.

Adding to these facts is the poignant gap between Black people who desire 

homeownership and those who achieve it: Although 87% of the Black renter 

population would like to own a home (compared with 75% of the white renter 

population)8

, only 42% of Black families have achieved homeownership.

A central element of our plan is the deployment of Special Purpose Credit 

Programs (SPCPs) aimed at enabling access to credit and encouraging sustainable 

homeownership for Black consumers. Additionally, SPCPs will be focused on 

people residing in formerly redlined and other underserved areas with majority 

Black populations. 

5 "The Future of Headship and Homeownership" Goodman, Zhu, 2021.

6 “Real Denial Rates” Goodman, Bai, and Li, 2018.

7 “Barriers to Entry: Closing Costs for First-Time and Low-Income Homebuyers,” Mota and Palim, 2021.

8 Fannie Mae National Housing Survey, 2nd quarter 2021.

Source: American Community Survey 2019

Smaller savings for post-purchase 

maintenance, natural disasters,

or income disruptions.

Renters carry higher shares

of housing cost burdens,

creating barriers to savings.

Lack of money

for down payments

and closing costs.

Lower credit scores and

credit invisibility.

© 2022 Fannie Mae Equitable Housing Finance Plan 9
The potential of SPCPs in addressing 

racial inequities in housing finance

In 1976, Congress expanded the Equal Credit Opportunity Act (ECOA) to prohibit 

discrimination not only on the basis of sex and marital status, but also age, race, 

color, religion, national origin and more. Recognizing that prohibiting discrimination 

was not sufficient to deal with past harms, Congress added a provision to the law 

that allows lenders to create SPCPs that permit loan products tailored to protected 

groups that might not otherwise meet the lender’s typical standards for eligibility.

Although the legal framework for SPCPs has existed for decades, they are a rarity in 

the mortgage market. Fannie Mae aims to change that. Our SPCP pilots will seek to 

address each of three distinct obstacles that keep many Black people from owning 

a home: mortgage eligibility, down payment, and closing costs.

In September 2021, Fannie Mae initiated a research project with multiple lenders to 

assess lender interest in SPCPs, as well as potential challenges and obstacles to their 

implementation and adoption. In addition, we have begun analyzing geographies 

with a high concentration of Black consumers, overlaying these areas with data 

about housing supply, affordability, historic redlining, legal settlements and more, 

all in service of identifying the areas where SPCPs have the best chance of achieving 

the Plan’s objectives. As commenters to the FHFA’s Request for Information (RFI) 

on housing equity noted, limiting the focus to only formerly redlined areas would 

exclude too many people, such as renters in majority Black areas that were not 

previously redlined. Similarly, work is being done to identify housing-related, local 

government programs to address the needs of historically redlined communities 

that could be supported and leveraged through the application of SPCPs. 

While SPCPs will always be unique to the lender and its community’s needs, Fannie 

Mae’s objective is to make our purchase of SPCP loans as routine as any other loans 

we currently buy. Fannie Mae anticipates that the first year of the Plan will be devoted 

to defining and launching three to five SPCP pilots with interested lenders. Details 

on these pilots, and the specific homeownership obstacles they will address, are 

included in our list of proposed actions below. 

Black homeownership 

is the lowest of all racial 

groups in the United 

States, and the Black 

homeownership gap is 

not improving. Black 

families are less likely to 

have the wealth needed 

to purchase and sustain 

homeownership.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 0
© 2022 Fannie Mae

Our Actions: 

Solutions Rooted in the 

Black Housing Experience

To refine our focus and prioritize our actions in this Plan, we developed a consumercentric framework that spans all aspects of a typical consumer’s housing lifecycle. We 

call this framework the consumer housing journey. 

Our first use case of this housing journey is to understand the obstacles faced by 

Black renters and homeowners. Over the last two years, Fannie Mae has conducted 

extensive research into the Black housing experience. This research has been 

distilled into a body of work we call the Black Housing Journey, which views housing 

obstacles from the Black consumer’s perspective. In this work, we have sought to 

chronicle the present-day experiences of Black renters and homebuyers during all 

phases of their housing journey. Of course, we acknowledge that the experience 

of Black people in the United States is not monolithic, and that the “Journey” we 

describe does not capture the infinite nuance of lived experience.

Equitable Housing Finance Plan 1 1
The Housing Journey

Using the Black Housing Journey as our guide, our Equitable Housing Finance Plan 

actions will focus on three primary areas:

• Housing Preparation: Helping Black consumers prepare early for 

sustainable homeownership and access to quality rental housing 

through establishing strong financial and credit foundations.

• Renting or Buying: Removing unnecessary obstacles Black people face 

in shopping for, acquiring, renting, or financing the purchase of a home.

• Moving in and Maintaining: Improve the services that help 

sustain homeownership so that homeowners and renters can 

withstand disruptions or crises and remain stably housed.

For each of these focus areas, we document the specific obstacles, the actions we will 

take to overcome them, the outcomes we will measure, as well as the potential risks. 

As this is a three-year plan and our efforts entail a willingness to experiment (and fail) 

in achieving our desired goals, tactical changes and additions should be expected.

Housing Preparation

A Brookings Institution study9 found wealth to be a more important factor than 

income in explaining the differences in homeownership rates among demographic 

groups. Homeowners are more likely to have higher incomes, more stable incomes, 

higher lifetime income expectations, and more savings. Individual wealth is tied to 

family or generational wealth often rooted in homeownership, and this is where most 

9 “Examining the Black-white wealth gap,” McIntosh, Moss, Nunn, Shambaugh, February 2020.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 2
white and Black families differ greatly. Indeed, 72% of white families report they could 

get $3,000 from family or friends, compared with 41% of Black families. Black and 

Hispanic families are less likely to have received or expect an inheritance.10

This wealth disparity creates a cascade of difficulties for Black consumers as they 

start their housing journey. Fannie Mae’s 2021 Multifamily “renter needs” research 

found 48% of Black renters versus 39% of white renters state the security deposit 

amount is a very important factor in choosing their rental home. For Black renters, 

the top reason for renting is to “become financially ready to own”; whereas for white 

renters, the top reason is “flexibility.”11 87% of Black renters aspire to own a home one 

day, which is slightly higher than white renters (75%) and Hispanic renters (80%).12

Knowledge gaps in housing preparation are a key factor in the Black housing 

experience. Fannie Mae’s consumer research shows that people of color are more 

likely to have incorrect or incomplete information about credit building and credit 

scoring, mortgage qualification, or even how much money they need to make a down 

payment. Our research shows that Black renters want to understand many aspects of 

the homebuying process but are most interested in learning about how much home 

they can afford (58%) and down payment assistance programs (58%).13

Early Education and Experiences: 

Black Americans are less likely to have parents who own homes, and are less likely to 

benefit from family wealth or wealth-building knowledge. Fannie Mae believes that 

expanded access to quality financial wellness education early in life is essential to any 

effort to address past racial discrimination in housing. In particular, helping students 

and young adults build strong credit histories, budgeting skills, and savings is vital to 

increasing the number of prospective homebuyers and sustainable homeownership 

over the long term. We are presently working with community groups, business 

partners, and professional associations to develop and implement such initiatives, 

which we hope will become integral to this Plan in future years. 

10 Survey of Consumer Finances 2019.

11 Fannie Mae National Housing Survey, Q4 2019.

12 Fannie Mae National Housing Survey, Q2 2021.

13 Fannie Mae National Housing Survey, Q2 2021.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 3
Obstacle: On-time rental payments are rarely included in credit 

histories and usually don’t contribute to a renter’s credit score. 

Targets and Outcomes: 

14 Fannie Mae is engaging with credit rating agency representatives to aid in the development of uniform standards for rental reporting in credit reports.

 • 2022 • Rental Payment Reporting Adoption Pilot Framework: Construct a pilot project by Q2 with 1 – 2 vendors 

and 3 – 5 multifamily landlords targeting a sample group of properties to participate in rental payment credit 

reporting. Vendors will be evaluated based on payment reporting program design, reach, and impact, among 

other factors. Landlords will be selected based on affordability characteristics of their portfolios, size, and 

geography, among other factors.14 

• Targeted Outcomes for Rental Payment Reporting Framework: Construct pilot to evaluate targeted 

quantitative outcomes: renter and landlord adoption rates, number of credit scores established, and the 

magnitude of credit score increases. In addition, we will seek to identify obstacles to renter and landlord 

adoption of rent reporting and potential solutions to address those obstacles. 

• Launch Rental Payment Reporting Adoption Pilot: Launch pilot in the field by Q3. 

 • 2023 – 2024

• Complete Rental Payment Reporting Adoption Pilot: Complete pilot by Q1 2023.

• Rental Payment Reporting Adoption Pilot Findings Assessment: Based on these quantitative and 

qualitative findings we will assess the viability of scaling the program and, if viable, design, implement, and 

refine the program as needed based on additional quantitative and qualitative learnings during the roll-out.

Action 1:

Pilot rental payment reporting across the multifamily industry

to help Black renters with no credit score establish a credit history 

and help those with low credit scores to increase them.

Description: Construct and launch a pilot project to evaluate the viability and effectiveness of having multifamily 

landlords report rental payment data to credit bureaus. If pilot findings are favorable, develop a Fannie Mae program 

to accelerate the adoption of rental payment reporting across the multifamily industry. 

© 2022 Fannie Mae Equitable Housing Finance Plan 1 4
Targets and Outcomes: 

15 The Transition to Home Ownership and the Black-White Wealth Gap – Kerwin Kofi Charles and Erik Hurst, The Review of Economics and Statistic, 2002, vol. 84, 

issue 2, 281-297 https://econpapers.repec.org/article/tprrestat/v_3a84_3ay_3a2002_3ai_3a2_3ap_3a281-297.htm

 • 202215

• Security Deposits Defrayal Adoption Pilot Framework: Develop a pilot with 1 – 2 vendors and 3 – 5 

multifamily landlords targeting a sample group of properties to participate. Vendors will be evaluated 

based on design of security deposit alternatives, reach, and impact, among other factors. Landlords will be 

selected based on affordability characteristics of their portfolios, size, and geography, among other factors. 

• Targeted Outcomes for Security Deposits Defrayal Pilot Framework: Construct pilot to evaluate 

targeted quantitative outcomes: rates of renter and landlord usage of security deposit alternatives and 

magnitude of renter savings afforded by use of the alternatives, relative to traditional security deposits. 

In addition, we will identify obstacles to renter and landlord adoption of security deposit alternatives 

and potential solutions to address those obstacles. 

• Launch & Complete Security Deposits Defrayal Pilot: Design pilot program by Q3 and launch pilot 

in the field by Q4.

 • 2023 – 2024 

• Security Deposits Defrayal Pilot Findings Assessment: Complete pilot by Q2 2023. Based on 

quantitative and qualitative findings, we will assess the viability of scaling the program and, if viable, 

design and implement the program, and refine as needed based on additional quantitative and 

qualitative learnings during the roll-out.

Obstacle: Black consumers are less likely to have the savings 

or family wealth to help with a down payment or security deposit.15 

Action 2:

Pilot options to defray and/or decrease the cost of renter security 

deposits. Decreasing renter security deposits would help Black renters 

qualify for quality rental housing and help them increase their savings.

Description: Construct and launch a pilot to evaluate options available to reduce upfront security deposit costs and the 

effectiveness of those options. If pilot findings are favorable, develop a Fannie Mae program to accelerate the adoption of 

security deposit alternatives across the multifamily industry.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 5
Renting or Buying

Searching for and acquiring a home can be difficult under the best of circumstances, 

but Black people are more likely to face a range of challenges unique to them.

Rental applications are rejected more often for Black 

people: Fannie Mae’s Multifamily Renter Needs Research 

found that 31% of Black renters have had a rental 

application turned down, compared with 18% of white 

renters, while 20% of Black and 24% of Hispanic renters 

cite difficulty finding information on rental listings, 

compared with 14% of white renters. 

Black home seekers were told about 11.4% fewer rental units and shown 4.2% fewer 

rental units than white home seekers.16 73% of Black and Hispanic renters and 84% of 

Asian renters pay an application fee, versus 56% of white renters. In urban areas, the 

differences are smaller, but the disparity remains.17

Lack of familiarity with the basics of acquiring a home has disproportionate impacts. 

According to Fannie Mae’s mortgage qualification research, 38% of the general 

population does not know how much a lender would require for a down payment; 

49% of Black consumers do not know how much would be required for a down 

payment. Many overestimate down payment costs: 42% of potential homebuyers 

overestimate the required down payment for a mortgage.

The general unfamiliarity with the homebuying requirements may disproportionately 

impact Black consumers who are already hampered by their efforts to become 

homeowners by lower average credit scores and available savings. 

Black applicants have higher mortgage denial rates than 

white applicants. 

The median credit score for Black mortgage applicants is lower than those of white 

applicants (691 compared with 748).18 Indeed, differences in credit scores and credit 

attributes are an important contributor to the Black-white homeownership gap. Black 

people have higher levels of credit “invisibility,” meaning they have no credit history 

on file with a major credit bureau. About 15% of Black people are credit invisible 

(compared with 9% of white and Asian people) and so are more likely to have an 

unscored record due to lack of history, which limits their access to financing.19 Black 

renters’ top obstacle to getting a mortgage is insufficient credit score/credit history 

(47%), followed by insufficient funds for a down payment and closing costs (35%). 

16 Housing Discrimination Against Racial and Ethnic Minorities 2012,” HUD, 2013.

17 Zillow Group Consumer Housing Trends Report, 2019.

18 2018 Home Mortgage Disclosure Act data.

19 “Data Point: Credit Invisibles,” CFPB, 2015.

Black people face 

a range of challenges 

unique to them:

General unfamiliarity 

with the homebuying 

requirements

Lower average 

credit scores and 

available savings

49% of Black consumers 

do not know how much 

would be required for 

a down payment

42% of potential homebuyers 

overestimate the required 

down payment

© 2022 Fannie Mae Equitable Housing Finance Plan 1 6
The order is flipped for white and Hispanic renters, where the down payment and 

closing costs are their biggest obstacle (38% and 39%, respectively), followed by 

insufficient credit score/credit history (32% and 33%, respectively).20

Low-income people of color buying their home for the first time are more likely to 

pay higher fees relative to a home’s purchase price in the homebuying and mortgage 

process than their white peers. Recently, Fannie Mae conducted a closing cost study 

of its 2020 home purchase loan acquisitions. That study found that closing costs tend 

to be regressive, in that low-income first-time homebuyers have median closing costs 

relative to home purchase price that are 13% higher than the median costs for all 

homebuyers. The study also found that Black and white Hispanic low-income firsttime homebuyers pay higher median closing costs relative to purchase price than 

their white non-Hispanic or Asian counterparts.21

Another potential barrier that has received widespread media attention is the issue 

of whether homes owned by Black homeowners or those in predominantly Black 

neighborhoods receive lower valuations during the home appraisal process. 

Fannie Mae is conducting research into this issue 

leveraging our database of over 54 million residential 

property appraisals to analyze undervaluation that 

could indicate bias to help identify root causes and 

potential solutions.

20 Fannie Mae National Housing Survey responses, Q3 2021.

21 “Barriers to Entry: Closing Costs for First-Time and Low-Income 

Homebuyers,” Mota and Palim, December 2021.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 7
Targets and Outcomes: 

22 2018 Mortgage Qualification Research - https://singlefamily.fanniemae.com/media/21466/display

23 All consumer education modules and training materials will be regularly updated to assure they remain current and actionable for new audiences.

 • 2022 2223

• Launch Fannie Mae First-Time Homeownership Education 

Curriculum: Go live with HomeViewTM in January2022.

• Marketing Outreach to Lenders & Agencies: In Q1, provide marketing outreach to promote course 

and showcase benefits to drive adoption/use among lenders and housing counseling agencies in

targeted markets that reach majority Black populations. 

• Marketing Outreach to Consumers: In Q2/Q3, launch a general marketing 

campaign to start driving consumer awareness and usage. 

• Fannie Mae HomeViewTM Product Usage & Adoption: By the end of 2022, we anticipate that 100,000 

first-time homebuyers will have completed homeownership education with any provider and for 50,000 

consumers to complete the Fannie Mae homeownership education course.

• Launch Fannie Mae HomeViewTM in Spanish: By the end of 2022, we plan to introduce a Spanish version 

of Fannie Mae HomeViewTM course.

Obstacle: Misperceptions or lack of knowledge about the 

homebuying and mortgage qualification process discourage 

some Black renters from pursuing homeownership.22

Action 3:

Build and Launch Fannie Mae First-Time Homeownership 

Education Curriculum22 that aims to provide consumers with 

education on the full spectrum of the homebuying process. 

Description: Develop and launch Fannie Mae HomeViewTM, a homeownership education course that aligns with National 

Industry Standards for Homeownership Education and Counseling. The course content was digitally analyzed according 

to the Flesh-Kincaid Grade Level and assessed to achieve an average reading level of 8th grade, which aligns with the 

reading level of the average person in the U.S., according to the Literacy Project. Make enhancements to the Fannie Mae 

homeownership course to deliver an education product across the mortgage lifecycle.

© 2022 Fannie Mae Equitable Housing Finance Plan 1 8
© 2022 Fannie Mae Equitable Housing Finance Plan 1 9

 • 2023 • Increase Fannie Mae HomeViewTM Usage & Adoption: Refine and continue marketing outreach to 

increase usage so that 120,000 first-time homebuyers will have completed homeownership education with 

any provider and for 70,000 consumers to complete the Fannie Mae homeownership education course.

• Launch Fannie Mae HomeViewTM in Additional Language(s): Continue launch of additional language(s). 

 • 2024 • Increase Fannie Mae HomeViewTM Usage & Adoption: Refine and continue marketing outreach to 

increase consumer usage so that 140,000 first-time homebuyers will have completed homeownership 

education with any provider and for 90,000 consumers to complete the Fannie Mae homeownership 

education course.
Obstacle: Insufficient credit history and a lack of down payment 

result in higher mortgage denial rates for Black applicants.24 

Action 4: 24

Execute SPCP Pilots to help support the expansion of homeownership 

eligibility and availability of down payment assistance (DPA25), while 

exploring ways to reduce SPCP participation hurdles for lenders.

24 Goodman, L., Bai, B., Li, W. (2018). Real Denial Rates: A Better Way to Look at Who Is Receiving Mortgage Credit https://www.urban.org/sites/default/files/

publication/98823/real_denial_rates_2.pdf

25 DPAs could come from local, community, or governmental sources.

26 Fannie Mae’s HomeReady program is generally limited to borrowers with incomes less than or equal to 80% of Area Median Income.

Description: Execute the following pilots, singularly or in combination: 

A. Expansion of Eligibility: Create a HomeReady® or similar program specifically for use with our SPCP pilots. 

This program would extend the benefits of the HomeReady product to borrowers with income levels greater 

than 80% of area median income in the SPCP areas who are purchasing or refinancing a principal residence.26

Potential benefits include lower down payment requirements, underwriting flexibilities, such as expanded 

sources of funds for down payment and closing costs, mortgage insurance (MI) cost reductions through lowerthan-standard MI requirements and reduced pricing through lower loan-level price adjustments (LLPAs). 

These pilots would allow Fannie Mae to test which of these benefits, or combinations of benefits, are the 

most effective. In addition, we plan to test expanded credit criteria, such as allowing for greater usage of 

boarder income. We will also encourage SPCP pilot lenders to use positive rental payment data in DU® as 

part of their loan process in order to help increase credit access for borrowers with thin credit histories.

B. Down Payment Assistance (DPA): Allow DPA funds, in some cases at a substantial level, from one or 

more of a variety of sources. Potential sources include lender-funded; Fannie Mae-funded; nonprofitfunded; Housing Finance Agency- (HFA) or government-funded, or some combination of these.

C. Local Government Programs: Identify opportunities for Fannie Mae to work with eligible recipients of funds 

from local government programs established to address housing discrimination and wealth inequity. Apply the 

SPCP scenarios described above as appropriate. Listen to stakeholders in communities with these programs 

to learn what help they most need. Assess opportunities to bring industry stakeholders to the table (e.g., 

lenders, mortgage insurance companies, etc.) to further help eligible recipients. Document learnings and 

explore where we can apply to other emerging programs so that these loans can be salable to Fannie Mae.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 0
D. Reduce Hurdles for SPCP Participation: Identify barriers to lender participation in SPCPs 

through a market insights survey and create opportunities for increased participation (e.g., 

clarification or changes to our Selling Guide) so that loans can be salable to Fannie Mae.

Targets and Outcomes: 

 • 2022 • Target Market Alignment: Identify and align target markets, lenders, and other industry participants (Q2).

• Pilots Launched: Execute 2 – 3 Pilots to inform 2023 actions (at least one each of down payment assistance 

and expanded eligibility).

 • 2023 – 2024 

• Assessment of Pilots & Plans to Scale: Evaluate success of pilots to determine how/if to scale or replicate. 

• Freddie Mac & FHFA Standardization Collaboration: As appropriate, work with FHFA and Freddie Mac to 

develop standardized government-sponsored enterprise (GSE) program(s). 

© 2022 Fannie Mae Equitable Housing Finance Plan 2 1
Obstacle: About 15% of Black 

consumers are credit invisible.27 

Action 5:27

Expand Eligibility and Access for credit-invisible borrowers

through automated underwriting enhancement and positive 

rental data implementation to support the expansion of eligibility 

for Black consumers.

27 Credit invisible is defined as consumers without records in nationwide credit 

reporting agencies according to the Consumer Financial Protection Bureau (CFPB). 

These customers have no credit information (which is different from customers with 

credit information but no score) and are often Black, Hispanic, or of low income. These 

customers face challenges in accessing credit.

28 Cash-flow underwriting: Use of summarized data from digital bank 

statement records covering such items as transaction patterns, balance 

trends over time, and other observations.3

Description: Increase access to credit for the 15% of Black consumers who lack credit scores by (a) implementing 

automated underwriting enhancements and (b) expanding positive rental data in Desktop Underwriter ® (DU®) adoption.

A. Automated Underwriting Enhancements & Expansion. Enhance and expand automated 

underwriting for all borrowers without a credit score. Increase access for credit-invisible borrowers by 

implementing capabilities to conduct cash-flow underwriting28 in Fannie Mae’s automated underwriting 

engine, DU. Make it easier for consumers with no credit score to become qualified using alternative 

sources of credit by implementing automated validation of non-traditional tradelines in DU.

B. Positive Rental Data Implementation. Expand adoption and usage of positive rental 

data in DU by further driving implementation of the technical enhancement among lenders, 

vendors, and other key constituents to ensure broad availability for borrowers.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 2
Targets and Outcomes:

 • 2022 

• Cash-Flow Underwriting: Implement cash-flow underwriting into DU by Q4 2022 for borrowers 

without a credit score. 

• Automated Validation in DU using Non-traditional Credit Tradelines: Using bank statement data, 

implement automated validation in DU of two non-traditional credit tradelines (e.g., Rental pay history, 

telecom) by Q4 2022.

• Positive Rental Payment Reporting Outreach: Expand adoption of positive rental payment in DU 

via outreach through (1) direct lender and vendor engagement, (2) paid digital media outreach, (3) 

webinars, conferences, partner, and affinity marketing, and (4) Fannie Mae ConnectTM report dashboard, 

a central source of information for Fannie Mae lenders, to help lenders identify potential opportunities. 

• Launch Rental Payment Reporting Consumer Campaign: Upon lender adoption at a national level, 

launch a consumer informational marketing campaign in markets that reach a majority Black population to 

create awareness of the potential ability to qualify for a mortgage with consistent, on-time rent payments 

and encourage outreach to their local lender.

 • 2023 – 2024

• Cash-Flow Model Adoption Plan: Assess ongoing adoption rates and create a 12-month plan to 

drive increased adoption and utilization of the cash flow model as necessary.

• Cash-Flow Model Performance Assessment: Program and loan performance monitoring. 

• Cash-Flow Underwriting Program Assessment: Evaluate whether the increase of cash-flow 

underwriting for borrowers in DU yields higher approve eligible rates and/or deliveries to Fannie Mae.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 3
Targets and Outcomes:

 • 2022 • Rental Reporting to Credit Bureaus Outreach & Awareness: Amplify the Consumer Data Industry 

Association (CDIA) Rental Empowerment Project, and support their four-pillar approach that includes: 

a. Support the efforts to build an operational framework for rental reporting 

data standards to be incorporated by credit bureaus. 

b. Partner on education and related training for all industry stakeholders to drive awareness. 

c. Leverage Fannie Mae research team to analyze and evaluate effectiveness and gaps. 

 • 2023 – 2024

• Program Assessment & Refinements. Monitor progress and refine strategy. 

• Continue Partnership on Rental Empowerment Project: Continue to support CDIA 

on the Rental Empowerment Project: education, policy, operations, and research.

Obstacle: Insufficient credit history and a lack 

of down payment results in higher mortgage 

denial rates for Black applicants. 

Action 6:

Enhance Eligibility & Underwriting via Rental Reporting 

to Credit Bureaus to support the expansion of eligibility 

for Black consumers.

Description: Encourage the reporting of positive rent payments to the Credit Bureaus through ongoing work with groups 

such as the Consumer Data Industry Association (CDIA), which represents consumer reporting agencies including the 

nationwide credit bureaus, regional and specialized credit bureaus, background check companies, and others.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 4
Targets and Outcomes:

 • 2022 • Target Market Alignment: Identify and align on target markets, lenders, and other industry 

participants by Q2 2022.

• Pilots Launched: Execute 2 – 3 Pilots to inform 2023 actions. 

• Assessment of Pilots: Evaluate effectiveness of pilot in reaching Black homeowners; cost savings 

in reducing payment; and closing cost barriers for Black homebuyers.

 • 2023 – 2024 • Assessment of Pilots & Plans to Scale: Evaluate success of pilots to determine how/if to scale. 

• Freddie Mac & FHFA Standardization Collaboration: If necessary, work with FHFA and 

Freddie Mac to develop standardized GSE program(s).

Obstacle: Black consumers are more likely to face higher closing 

costs relative to a home’s purchase price, creating barriers to 

first-time homebuyers and depleting post-purchase savings. 

Action 7:

Execute SPCP Pilot to support the reduction of borrower closing 

costs for Black homebuyers via appraisal products, appraisal 

reimbursements, and/or title products.

Description: Construct an offering in connection with one or more of our SPCP pilots to test the use of appraisal 

reimbursements, appraisal products, or title products in certain target geographic markets to reduce borrower closing 

costs for Black homebuyers.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 5
Targets and Outcomes: 

 • 2022 • Closing Cost Research, Selling Guide Updates, and Title Insurance Pilot are key 

initiatives planned to assist with the reduction of closing costs for 2022: 

a. Closing Cost Research: Initial closing cost research, which includes analysis of closing costs paid 

by different racial and ethnic groups, was published in December 2021. Additional research on how 

closing costs impact people of color and low-income populations will be published in 2022. We believe 

publishing this research will build awareness of disparities in closing costs across racial and ethnic lines, 

and that stakeholders will be more compelled to act to remedy these disparities once they are measured 

and documented. We will evaluate stakeholder interest and success by measuring engagement with 

the research, as measured quantitatively by views/downloads of the research and qualitatively 

by industry interest in and discussion of the findings.

Obstacle: Black consumers cite insufficient 

savings for down payment and closing costs (31%) 

and insufficient credit (32%) as their top obstacles 

to getting a mortgage. 

Action 8:

Reduce Closing Costs for Black consumers to help support the 

removal of the barrier of lack of sufficient funds for closing (down 

payment plus closing costs) faced by Black homeowners and 

prospective homeowners.

Description: Document borrower closing costs and identify opportunities to alleviate the disproportionate closing cost 

burden on borrowers of color. Three initiatives are planned for 2022. Actions beyond 2022 will depend on the impact these 

initiatives have but could include changes to some or all of these initiatives, development of additional initiatives to reduce 

closing costs, or the decision to not make further investments in reducing closing costs. 

© 2022 Fannie Mae Equitable Housing Finance Plan 2 6
b. Attorney Opinion Letter: Update the Selling Guide to encourage lenders to allow borrowers the option 

to utilize an attorney opinion letter in lieu of traditional title insurance more often, which may be cheaper 

than traditional title options. We believe more common use of attorney opinions could lead to savings 

for some borrowers. We are looking into how we will be able to utilize internal and/or external data to 

track usage of this option.

c. Title Insurance Cost Reduction: Pilot options to reduce title insurance costs to borrowers. Potential 

options could include coordination of bulk purchase of title insurance, with savings passed to consumers, 

or a subsidy for qualifying buyers. While the specifics will vary depending on the pilot, we will evaluate 

success based on the number of borrowers who leverage the pilot benefits and the estimated average 

savings for each of these borrowers.

 • 2023 – 2024

• Program Assessment: Actions for these years will depend on lessons learned in the pilot. Potential 

actions include developing additional initiatives aimed at reducing other closing costs, expansion of or 

modifications to initiatives launched in 2022, or a decision to deprioritize various aspects of this work.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 7
Targets and Outcomes: 

 • 2022 • Tool Feasibility Assessment: Assess the feasibility of developing the closing cost calculator and supporting 

educational resources. Pending the outcome of the feasibility assessment, we will develop the consumerfacing tool and supporting educational resources. These items may help consumers better understand 

the components of closing costs and use the tool to compare their closing costs with benchmarks.

 • 2023 – 2024

• Tool Feasibility Assessment & Launch: Pending the outcome of the feasibility assessment, 

we will launch and promote the consumer-facing tool to drive awareness and 

utilization of the closing costs calculator. 

Obstacle: Lack of readily available consumer information 

to evaluate the reasonableness of closing costs.

Action 9:

Launch Closing Cost Calculator Tool

Description: Create a consumer-facing closing cost calculator using Fannie Mae’s aggregated closing cost data from 

loan acquisitions for consumers to look up average closing costs specific to their general geographical location (e.g., by ZIP 

code). This tool will bring greater transparency to closing costs and provide empirical data that can help consumers more 

effectively negotiate those costs.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 8
Targets and Outcomes: 

 • 2022 • Data Analysis, Quality Control (QC), Monitoring Trends, Industry Engagements, and Technology 

are key initiatives of the 2022 Appraisal Bias Work Plan: 

a. Data Analysis: Leverage our database of roughly 54 million appraisals to analyze undervaluation that 

could indicate bias. These data will be used to analyze any disparities in the frequency and severity of 

undervaluation relative to borrower race and neighborhood demographics. Target Outcome: The 

results of these data will inform the research that will be published via an external industry memo 

followed by a research paper that will be shared with industry stakeholders in Q1 – Q2 2022.

b. Quality Control (QC)/Monitoring: Enhance our quality control requirements for lender appraisal 

reviews and increase ongoing appraisal quality monitoring. Appraisal Quality Monitoring includes random 

and targeted quality control reviews of appraisals on acquired loans. Leverage our established Appraiser 

Quality Monitoring process to identify individual appraisers whose appraisal reports may indicate bias 

through a pattern of inconsistencies, inaccuracies, or data anomalies. Communicate with appraisers 

identified to provide an opportunity to improve their work and follow up with other actions as needed. 

Target Outcome: Implement a new awareness flag data point that will activate when internal data indicate 

a possible undervaluation, triggering a targeted quality control review by Q2 2022. 

Obstacle: Potential for racial bias in the appraisal process 

may lead to valuation discrepancies for Black homeowners 

or homes in predominantly Black neighborhoods.

Action 10:

Valuation Modernization aims to support an equitable appraisal 

process for Black households and communities of color.

Description: Fannie Mae believes there is a way to modernize how homes are appraised by leveraging data analysis, 

quality control (QC), monitoring trends, industry engagements, and technology. Fannie Mae’s 2022 Appraisal Bias Work Plan 

incorporates all of these elements in order to reduce the potential for appraisal bias.

© 2022 Fannie Mae Equitable Housing Finance Plan 2 9
c. Monitor Trends: Continue to evaluate trends across appraisals for problematic words and phrases that 

may indicate bias. Continue to broadly reinforce messaging that it is unacceptable to use demographic 

data in determining property value. 

d. Industry Engagement: Convene lender representatives in appraisal management roles to share 

information about appraisal bias challenges and potential solutions. Targeted Outcome: Continue 

to raise awareness of research paper results, new products, and technology enhancements across 

a minimum of 12 industry forums throughout 2022. 

e. Technology: Leverage data and technology to implement a range of valuation options to lower 

costs and reduce the potential for bias in the appraisal process. Modify the Fannie Mae Selling Guide

to allow for desktop as an appraisal option, based on successful implementation of this option during 

the COVID-19 pandemic. Increase use of hybrid appraisals, where the property inspection is done

by an independent third party. Both options reduce costs to the borrower and reduce potential risk 

of bias by creating greater separation between the appraiser and borrower. Targeted Outcome: 

Enhance Collateral Underwriter® (CU®)29 with a new undervaluation flag to be launched into 

production in Q2 2022.

• 2023 – 2024

• Product Launch: Launch inspection-based appraisal waiver.

• Product Assessment: Evaluate impact of this program on reducing closing costs and potential 

racial bias in the appraisal process.

• Product Refinement: Refine to incorporate learnings from launch and rollout and develop 

permanent solution.

• Product Updates: Launch new Uniform Appraisal Dataset (UAD) specifications that will help 

appraisals be more data centric versus subjective.

29 Collateral Underwriter® (CU®) is a web-based application provided at no charge to 

help lenders manage collateral risk as part of their underwriting and quality control 

processes. The application uses appraisal data and advanced analytics to help identify 

and research appraisals with overvaluation, appraisal quality, or property eligibility/

policy compliance risks.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 0
Targets and Outcomes: 

 • 2022 • Appraiser Trade Profession Scholarships: Provide 200 scholarships to the Appraisal Institute to support 

people of color in the appraiser trade profession. 

• Appraiser Diversity Program Recruiting Outreach: Host at least seven outreach events/programs 

to raise ADI awareness among people of color. 

• Sponsorships Acquisition: Secure a minimum of five new sponsors from industry stakeholders (i.e., 

Lenders, Appraisal Firms, Appraiser Management Companies). 

• Higher Education Outreach: Develop and test two higher education outreach programs, including one at 

an Historically Black College or University (HBCU), per quarter. 

Obstacle (see also action 10): Potential for racial bias in the 

appraisal process may lead to valuation discrepancies for Black 

homeowners or homes in predominantly Black neighborhoods.

Action 11:

Expand Appraiser Diversity Initiative (ADI) to attract new entrants 

to the residential appraisal field, overcome barriers to entry (such as 

education, training, and experience requirements), and foster diversity, 

which we believe will help to reduce appraisal bias against Black 

homebuyers, homeowners, and communities over the long term.

Description: The Appraiser Diversity Initiative (ADI) is a Fannie Mae-led initiative to create greater diversity within the 

housing appraisal industry. Through ADI, we seek to grow the number of Black appraisers. We do this by building awareness 

of the appraisal field as a potential career path for candidates from historically underrepresented groups and providing 

scholarships for selected individuals to participate in courses offered by the Appraisal Institute. These courses are designed 

to prepare candidates to begin working as an appraiser trainee and meet the educational requirements to attain a trainee 

license through their local state board. In addition to the coursework, the ADI helps connect program participants to 

industry participants who have opportunities available for appraiser trainee positions. The ADI diversifies the candidate 

pipeline for the housing appraisal industry. 

© 2022 Fannie Mae Equitable Housing Finance Plan 3 1
 • 2023 • Appraiser Trade Profession Scholarships: Provide 200 new scholarships to support people of color

in the appraiser trade profession. 

• Appraiser Diversity Program Recruiting Outreach: Host 7+ outreach events/programs to recruit 

diverse individuals to the ADI.

• Sponsorships Acquisition: Secure an additional 3+ new sponsors from industry stakeholders (i.e., 

Lenders, Appraisal Firms, Appraiser Management Companies). 

• Higher Education Outreach: Refine approach and hold 1 Historically Black College and University (HBCU) 

and college outreach opportunity per quarter. 

 • 2024 • Appraiser Trade Profession Scholarships: Provide 200 new scholarships to support people of color

in the appraiser trade profession.

• Appraiser Diversity Program Recruiting Outreach: Host 7+ outreach events/programs to recruit 

diverse individuals to the ADI.

• Sponsorships Acquisition: Secure an additional 3+ new sponsors from industry stakeholders (i.e., 

Lenders, Appraisal Firms, Appraiser Management Companies). 

• Higher Education Outreach: Refine approach and hold 1 Historically Black College and University 

(HBCU) outreach opportunity per quarter.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 2
Targets and Outcomes:

30 https://www.zippia.com/real-estate-agent-jobs/demographics/

• 202230

• New Partners: Onboard 20 new external partners from housing industry companies who agree 

to leverage FHL diverse recruiting services or participants in the FHL summer program.

• Placed Interns: 150 interns paired with external partners across the housing industry.

• 2023 • New Partners: Onboard 20 additional new external partners from housing industry companies 

who agree to leverage FHL diverse recruiting services or participants in the FHL summer program.

• Placed Interns: 225 interns paired with external partners across the housing industry.

 • 2024 • New Partners: Onboard 20 additional new external partners from housing industry companies 

who agree to leverage FHL diverse recruiting services or participants in the FHL summer program.

• Placed Interns: 250 interns paired with external partners across the housing industry.

Obstacle: Industry professionals throughout the mortgage and 

housing systems do not reflect the racial makeup of the U.S. population.30 

Action 12:

Expand Future Housing Leaders® (FHL) to increase the representation 

of Black people in the housing industry to improve access to economic 

opportunities while creating an industry that better reflects the 

diversity of the nation.

Description: Future Housing Leaders® is a free, Fannie Mae-led recruiting service that helps companies create a more 

diverse workforce. Through intentional sourcing and recruiting, Future Housing Leaders® provides companies in the 

housing industry with a pipeline of diverse talent to introduce them to careers in housing. By partnering with Future 

Housing Leaders®, housing industry employers have access to a talent network that can help companies fulfill their 

commitments to forging a more diverse and inclusive workforce.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 3
Moving in & Maintaining

Progress in closing the homeownership gap cannot occur without focusing on 

resources and support to create ongoing housing stability for Black homeowners.

Black homeowners more often cite post-purchase maintenance as a challenge to 

sustainable homeownership. After buying a home, 46% of Black homeowners cite 

cost-effective home repairs as what would be most helpful to them as ongoing 

information or education. Access to a mortgage counselor would be the second most 

helpful item (40%), with refinancing options (36%) and household budgeting (35%) 

tied as third most helpful.31

Fannie Mae consumer research found that 59% of homeowners do not know how to 

maintain their homes to avoid future repairs, and 65% do not make time to perform 

maintenance tasks. Black homeowners report higher rates of repair needs (39.6%) 

relative to the general population (35.8%). Black homeowners tend to have limited 

emergency savings: white homeowners have $12,000 in median liquid assets, 

compared with $4,000 for Black homeowners.32 Having a source of ready cash is 

a key factor in preventing mortgage default in response to income shocks from 

things such as unexpected home repairs.33

Black homeowners do not realize home value appreciation at the same rate as white 

homeowners. Financial gains from homeownership were substantial for homeowners 

who bought and maintained homeownership from 1999 to 2009, though less so for 

lower-income households and households of color. This was likely a contributing 

factor in the decrease in median net worth for Black homeowners in the early 2000s, 

regardless of purchase timing.34

Black homeowners may have higher relative tax burdens. Recent research shows 

that property taxes are regressive, with lower-valued homes and neighborhoods 

assessed at higher values relative to their sales prices and local public services. 

Appeals behavior and outcomes also differ across race, collectively leading to higher 

tax burdens for Black homeowners and neighborhoods.35

People of color are disparately exposed to and impacted by flood risk. These areas 

of vulnerability occur mostly in rural areas and in southern states, especially where 

there is a higher concentration of manufactured homes.36 Furthermore, a recent 

analysis by the First Street Foundation showed that people of color were more likely 

to be in an area “unmapped” for flood risk, even though these areas had higher flood 

risk relative to the state average.37 In areas that are unmapped, flood insurance is not 

a requirement and not often a consideration for new or existing residents of that area. 

31 Fannie Mae National Housing Survey, Q2 2021.

32 Survey of Consumer Finances 2019.

33 “Trading Equity for Liquidity: Bank Data on the Relationship Between Liquidity and Mortgage Default,” JPMorgan Chase & Co. Institute, 2019.

34 “Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s,” Newman, Holupka, 2015.

35 “The Assessment Gap: Racial Inequalities in Property Taxation,” Avenancio-Leon, Howard, 2021.

36 “Flood Exposure and Social Vulnerability in the United States,” Tate, Rahman, Emrich, et al, 2021

37 “First National Flood Risk Assessment,” First Street Foundation, 2020.

Most helpful 

resources and support 

for Black homeowners 

post-purchase:

Cost-effective home 

repairs information

Access to a mortgage counselor

Refinancing options

Household budgeting

© 2022 Fannie Mae Equitable Housing Finance Plan 3 4
Targets and Outcomes: 

38 “The Homeownership Experience of Low-Income and Minority Families” Abt Associates 2006

 • 202238

• Target Market Alignment: Identify and align eligible markets, lenders, and partners for pre- and

post-loan counseling. 

• Pilots Launched: Execute 1 – 2 pilots and evaluate adoption/usage of services by intended population 

and loan performance.

 • 2023 – 2024

• Assessment of Pilots & Plans to Scale: Monitor performance of pilots to determine how 

and whether or not to scale.

• Freddie Mac & FHFA Standardization Collaboration: If necessary, work with FHFA 

and Freddie Mac to develop standardized GSE program(s).

Obstacle: After buying a home, Black households, on average, 

have more limited emergency savings to cushion against 

unexpected expenses or temporary disruptions to income.38 

Action 13:

Test adding ongoing education and counseling support to one or 

more SPCP pilots to strengthen borrower housing stability over time.

Description: Construct a SPCP pilot program in target geographic markets that combines a mortgage with Fannie Mae 

new homebuyer education and post-purchase counseling. Test the effectiveness of adding homebuyer education and 

post-purchase counseling onto our SPCP pilots.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 5
Targets and Outcomes: 

 • 2022 • Target Market Alignment: Identify and align on eligible markets, lenders, and partners. 

• Pilots Launched: Execute 1 – 2 pilots and evaluate: adoption/usage of services by intended 

population, loan performance, and other relevant factors.

 • 2023 – 2024

• Assessment of Pilots & Plans to Scale: Evaluate success of pilots to determine how/if to scale.

• Freddie Mac & FHFA Standardization Collaboration: If necessary, work with FHFA 

and Freddie Mac to develop standardized GSE program(s).

Obstacle (see also action 13): After buying a home, Black household, 

on average, have more limited emergency savings to cushion against 

unexpected expenses or temporary disruptions to income.

Action 14:

Test add-on features to one or more SPCP pilots aimed 

at strengthening ongoing borrower stability by helping 

borrowers deal with unexpected expenses and repairs, or 

temporary disruptions to income.

Description: Explore and test additional features that we can add on to our proposed SPCP pilots to support ongoing 

homeownership stability — for example, mortgage reserve accounts, home warranty products, or flood insurance. 

© 2022 Fannie Mae Equitable Housing Finance Plan 3 6
Targets and Outcomes:3940

39 Fannie Mae Multifamily Renter Needs Research, August 2021.

40 Survey of Consumer Finances 2019.

 • 2022 • Branded Consumer Content: Create a unified brand for Fannie Mae counseling initiatives to make it 

easier for consumers to access the assistance they need. 

• Consumer Counseling: Provide free counseling to 10,000 consumers experiencing distress. 

• Launch Consumer Awareness Campaign: Launch an outreach campaign by June 2022 to reach Black 

consumers and drive awareness of available counseling services.

• Process Tracking Implementation: Implement process/tracking to determine if campaigns are reaching 

Black homeowners and renters. 

• Servicer Outreach: Engage with 15 servicers about post-modification and/or disaster response services 

and implement referral process with two of these servicers.

 • 2023 • Implement Servicer Disaster Response Referral Process: Engage with 10 servicers about postmodification and/or disaster response services and implement referral process with two of these servicers.

• 2024 • Expand Servicer Disaster Response Referral Process: Engage with five servicers about post 

modification and/or disaster response services and implement referral process with one of these servicers. 

• Targeted Audience Tracking Reporting: Tracking to assess if services are reaching Black homeowners 

and producing desired outcomes. 

• Additional Targeted Consumer Outreach: Continue to promote counseling offerings to Black consumers.

Obstacle: A significant number of Black renters report struggling with unexpected/late fees during the lease,39

and Black borrowers tend to have more limited emergency savings to withstand income shocks or other disruptions.40 

Action 15:

Expand counseling services for borrowers and renters facing hardship.

Description: Execute vendor relationships with four U.S. Department of Housing and Urban Development-certified 

housing counseling agencies by March 2022 to deliver housing counseling services to eligible borrowers and renters in need 

of default/foreclosure/tenant eviction prevention, disaster recovery, and/or post-modification counseling services.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 7
Targets and Outcomes: 

 • 2022 • Monthly Portfolio Monitoring Reviews: On a monthly basis, Fannie Mae will conduct portfolio 

monitoring reviews to identify disparities in forbearance and loss mitigation outcomes. 

• Pilot Launches: By the end of Q2 2022, we will launch 1 – 2 pilots with a select set of servicers who are 

identified as outliers based on our research and analysis. The pilots will allow us to build upon our internal 

research and validate drivers of disparities and identify potential solutions. Ongoing monitoring of pilot 

participants will allow us to assess proposed solutions for material improvement in performance, and 

feasibility to scale the pilot to additional servicers in 2023. Potential pilot features may include:

a. Leveraging performance data to partner with lenders to support borrower outreach and education events.

b. Co-branding borrower education materials with HFA lenders and HFA servicers.

c. Supporting 500 virtual counseling sessions that offer loss mitigation services as well as other financial 

relief services.

 • 2023 – 2024

• Monthly Portfolio Monitoring Reviews: Continue to conduct monthly portfolio monitoring reviews, 

evaluate research findings, and pilot participants to modify pilot as necessary.

• Pilot Assessment & Refinement: Based upon learnings from 2022, determine whether to expand pilot 

to an additional 1 – 2 HFAs and / or additional servicers.

Obstacle: Black homeowners tend to have more limited 

emergency savings to withstand income shocks or other disruptions.

Action 16:

Provide ongoing oversight of Servicer Forbearance/

Loss Mitigation efforts.

Description: By identifying disparities in forbearance and loss mitigation outcomes, Fannie Mae can apply a datadriven approach to reduce foreclosure rates among Black homeowners. Through Fannie Mae’s direct partnerships with 

sellers and servicers, we can increase trust among Black borrowers with their loan servicer providing additional support.

© 2022 Fannie Mae Equitable Housing Finance Plan 3 8
Targets and Outcomes: 

41 “Flood Exposure and social vulnerability in the United States,” Tate, Rahman, Emrich, et al. January 2021.

42 Key risks for this initiative include the availability of data or accurate models on the long-term prognosis for localized climates, dependence on a partner to provide accurate 

analytics, and dependence on governments or community organizations to fund and execute solutions to mitigate the impact of climate change.

43 While the measures each community takes to mitigate climate risk will depend on a variety of factors (e.g., funding, available resources), we seek to empower communities 

with data to enable them to make a stronger case for change and resources. Access to analytics can help disadvantaged communities develop action plans that may help 

them compete for state or federal grants targeted towards climate resiliency.

• 2022414243

• Launch Climate Analytics Pilot: Identify two or three markets for climate analysis. Criteria used to select markets 

will include likelihood of climate change impacting the market, size of the Black population in the community (both 

in absolute numbers and percentage of the community), and presence of governmental or community organizations 

with whom to partner. In addition to providing analytics through a partner organization, Fannie Mae will help advise 

on approaches to address long-term climate risks. While we aim for this work to lead to planning and/or funding 

activity, our 2022 goals are to establish partnerships, provide analytics, and provide consultation.

• 2023 • Climate Analytics Pilot Assessment & Possible Pilot Expansion: We will continue working with the 2022 

markets, continuing to provide analytics through a partner organization and advising on climate change mitigation 

strategies. We may elect to cease working in markets where we do not believe the work is likely to lead to material 

changes in community planning or funding to mitigate the impact of climate change. In addition to continuing 

to support these markets, we plan to add an additional 2 – 4 communities and document the lessons learned 

through this work in 2022.

 • 2024 • Climate Analytics Pilot Assessment & Possible Broader Roll-out: If we believe this work is gaining traction 

and driving changes in planning or funding for mitigating the impact of climate change, we will evaluate the 

feasibility of sharing data on climate analytics more broadly. If possible, we would like to do a broader rollout 

of climate analytics for LMI and communities of color.

Obstacle:Black homeowners are 

disproportionately exposed to flood risk.41 

Action 17:

Provide climate analytics to empower communities with data,42

enabling them to make a stronger case for change and resources. 

Description: Providing climate analytics is designed to help communities prepare for the increasing risk of climate change. 

The expectation is that the analytics will inform an approach to mitigate the risks to that community. These analytics will 

use predictive modeling to assess the risk of climate-related events (e.g., flooding, wildfire, drought, hail) to a given community.43 

© 2022 Fannie Mae Equitable Housing Finance Plan 3 9
Fannie Mae 

Considerations 

and Potential 

Constraints 

As we work to achieve the objectives set forth in this Plan, we remain mindful of 

the underlying goal of delivering a sustainable homeownership experience for the 

intended beneficiaries. This means we will not permit considerations of meeting Plan 

targets to eclipse the best interests of Black consumers considering or obtaining their 

homes. This is why our emphasis on financial well-being, homebuyer education, and 

programs to promote ongoing housing stability and assistance in times of hardship 

are such a critical component of this Plan.

Data & Research Considerations

Mechanism for assessing the impacts of the proposed actions. The 30-percentage 

point gap between Black Americans who own homes compared to non-Hispanic 

white Americans translates to approximately 4.7 million Black households. Our 

housing journey framework applies a data-driven approach to identifying the major 

obstacles facing Black renters and homeowners. However, we have more work to do 

to understand how the total gap of 4.7 million households breaks down against each 

of the key obstacles in the housing journey. In order to begin to quantify the potential 

impact of our actions, we need to dig further into the data to evaluate how many Black 

households are impacted by each of the key obstacles.

Q1 2022 Economic & Strategic Research: Conduct research and analysis to better 

inform a mechanism for assessing the impacts of the proposed actions. We will 

assess the top housing obstacles across the Black housing journey and produce 

an estimated range of the number of Black households that are impacted by each 

housing obstacle.

This type of information can help us to quantify the magnitude of each of the 

obstacles relative to the overall 4.7 million gap, and better understand the amount of 

capacity that is available to address the range of Black households that are impacted 

by the obstacle. As we produce this research, Fannie Mae will also seek to partner 

with others in the industry to obtain additional data sources. 

We have more work 

to do to understand 

how the total gap of 

4.7 million Black 

households breaks 

down against each 

of the key obstacles 

in the housing journey.

© 2022 Fannie Mae Equitable Housing Finance Plan 4 0
Q3 2022 Economic & Strategic Research: Using the housing journey framework, 

conduct research and analysis to understand the unique obstacles facing Latino 

renters and homeowners in order to provide a basis for expanding the focus of 

future Equitable Housing Plans.

2023 and 2024 Target: The 2022 research will (1) establish a mechanism for 

assessing the impacts of the proposed actions, and (2) layout planning for 

proposed actions for the Latino housing journey obstacles.

Outreach Considerations

Creation and Maintenance of Free Educational Content & Resources. The 

innovations and actions described in this Plan will require Fannie Mae to conduct 

extensive outreach to raise awareness of proposed innovations prior to and after 

market rollout. Fannie Mae will develop educational content and resources that are 

continuously updated and ‘evergreen’ for new audiences. These resources will be 

housed on our consumer-specific channels (website/app) and distributed to our 

lender/servicer partners to share with their customers.

Consumer Outreach in 2022: Fannie Mae will identify specific consumer audience 

segments, create the appropriate content and channel strategy, and execute 

marketing campaigns to reach at least 15 million diverse renters and homeowners 

by end of year and drive at least 400,000 visitors to Fannie Mae’s consumer website. 

We will also develop lender digital content packages two times a year and distribute 

through email and internal account teams; launch interactive web pages illustrating 

the barriers and gaps along the Black Housing Journey; and support industry 

marketing outreach to lenders and mortgage professionals to drive 25,000 visitors to 

the interactive web pages.

Fannie Mae will produce pieces of content quarterly on Fannie Mae’s channels (website/

app) that focus on different stages and pain points within the housing journey: 

• 3 – 5 on pre-purchase (e.g., building/fixing credit score, 

down payment assistance programs, closing costs). 

• 2 – 4 on post-purchase (e.g., home maintenance importance, flood risk). 

• 2 – 4 on renters (e.g., renters rights, credit score, application fees).

Consumer Outreach in 2023 through 2024: Fannie Mae will analyze 2022 

consumer education outreach results and refresh campaign efforts with new 

content based on audience priorities to maintain or exceed 2022 reach and visitors 

Emphasis on Black 

consumers’ financial 

well-being, homebuyer 

education, and programs 

to promote ongoing 

housing stability and 

assistance in times of 

hardship are a critical 

component of this Plan.

© 2022 Fannie Mae Equitable Housing Finance Plan 4 1
to consumer website. We will update interactive webpages to include new data and 

insights, and create updated pieces of content quarterly that focus on different stages 

and pain points in the housing journey. We anticipate content pieces will include: 

• 2 – 4 on pre-purchase (e.g., building/fixing credit score, 

down payment assistance programs, closing costs).

• 2 – 4 on post-purchase (e.g., home maintenance importance, flood risk).

• 1 – 2 on renters (e.g., renters rights, credit score, application fees).

Continuing to market outreach and create additional content quarterly based upon 

2023 results and analysis of content impact and needs.

Implementation Considerations

Appropriateness of pilot activities. The innovations and actions described in this 

Plan will require Fannie Mae to conduct extensive research and pilots. Pilots involve 

limited scope testing of hypotheses to compare expected results to actual results 

and thereby inform decisions regarding market rollout. As pilots are developed, 

we consider many factors including alignment to our Key Business Decision44 (KBD) 

requirements, legal and regulatory requirements, success measures, timelines, 

and the appropriate market participants to partner. At the end of a pilot’s lifecycle, 

we determine whether to stop, continue the pilot to test additional variables, or to 

deploy the innovation to the market. Piloting a proposed innovation helps to ensure 

that the expansion of affordable, sustainable, and healthy housing options 

for consumers follows a safe and sound structure.

Therefore, when Fannie Mae proposes a pilot in the plan, prior to its launch, the 

documentation for each pilot will articulate:

• A clear problem statement identifying a current policy or practice 

that is adversely affecting prospective or existing borrowers, and 

the proposed tactics to eliminate or mitigate that problem. 

• Specific limits applicable to the pilot, including its duration, loan volume 

(as applicable), and/or participating lenders or other parties; and 

• Evaluation standards, including metrics to assess the pilot’s degree of success.

44 A KBD is a decision that may expose Fannie Mae to significant, new, or unusual risk - including strategic, 

reputational, market, funding and liquidity, operational, credit, or compliance risk.

© 2022 Fannie Mae Equitable Housing Finance Plan 4 2
Seller/Servicer adoption and implementation considerations. Successful 

lender implementation and adoption are dependent upon engaging with and 

gathering input from a diverse set of Sellers and Servicers (i.e., depositories, 

mortgage banks, credit unions, servicers) and their industry partners (i.e., loan 

origination systems, point of sale systems, servicing/loss mitigation platforms) 

to test and learn prior to rollout. 

• Fannie Mae currently leverages our network of lenders, counseling 

agencies, Housing Finance Agencies, education providers, and 

housing finance industry technology partners to complete research, 

pilots, and/or staged rollouts of proposed policy, product, and/

or service changes. Implementation risks include the inability and/

or unwillingness of Seller/Servicers to participate in pilots. 

• Prior to rollout, each new product, capability, policy, or service 

undergoes an internal market-readiness assessment from crossfunctional stakeholders (i.e., legal, marketing, operations, digital alliances, 

customer support) that review and confirm releases are market-ready 

from a customer, industry partner, and enterprise perspective.

Mortgage Insurer support considerations. Successful implementation of new 

charter-compliant initiatives will depend on the participation of approved mortgage 

insurer partners that already insure nearly all of our high loan-to-value loans in order 

to meet our charter requirement.

• Approved mortgage insurers have demonstrated their partnership 

with us in testing and standardizing innovative guidelines for lenders 

to underwrite, originate and service loans, based upon a relationship 

built on transparency of data and ideas. However, implementation 

risk for a number of items in this plan includes the inability and/or 

unwillingness of mortgage insurers to participate in new pilots.

By piloting a proposed 

innovation or action 

described in this plan, 

we ensure that the 

expansion of affordable, 

sustainable, and healthy 

housing options for 

consumers follows a safe 

and sound structure.

© 2022 Fannie Mae Equitable Housing Finance Plan 4 3
Appendix

Find corresponding and supporting documents in this section:

A. Summary of consultations

B. Governance & strategy execution

C. Request for information (RFI): summary of responses and plan alignment

D. Special purpose credit program (SPCP) strategy overview

E. Summary of planned actions

F. Summary of acronyms

G. Summary of references & sources

© 2022 Fannie Mae Equitable Housing Finance Plan 4 4
A. Summary of consultations

Fannie Mae consultations for this Plan are summarized below. These consultations 

were with nonprofit organizations, community groups, consumers, governmental 

agencies, lenders, and other participants in the housing finance industry. We note 

that the consultations listed below were held over the course of the past two years, 

both before and after issuance of the directive that spurred the development of 

this Plan. Outreach that occurred prior to issuance of this directive was conducted 

in support of our mission and our Environmental, Social, and Governance (ESG) 

enterprise strategy. 

Initiated in 2019, our ESG strategy builds on our mission to provide liquidity, 

affordability, and stability to the U.S. residential mortgage market and to promote 

equitable access to mortgage credit. This included the creation of the Community 

Responsibility and Sustainability Committee of our Board of Directors in 2019. In 

addition to overseeing our ESG strategy, this Committee’s charter also includes 

leadership of our development of industry solutions to increase access to housing 

for people of color, address systemic bias in housing, and promote sustainable 

homeownership for people of color. As part of our Board-level focus on advancing 

racial equity across the housing finance system, we have conducted ongoing 

outreach to generate conversations, listen to ideas, and understand obstacles to 

fair and equitable housing in the U.S. All consultations listed, whether they occurred 

before or after the directive being issued, helped inform actions proposed in this 

Plan. We will continue to consult relevant stakeholders over the course of the Plan’s 

three-year period.

Nonprofit organizations/community groups

Organization Date of consultation

Center for Responsible Lending Q2 2021

Fannie Mae Affordable Housing Advisory Council Q2, Q4 2021

Florida Housing Coalition Launch Center for Racial Equity Q1, Q3 2021

HomeFree Q3 2020

Housing Partnership Network Q1 2021

Junior Achievement Q1 2021

LISC: Local Initiatives Support Corporation Q3 2020

Minnesota Homeownership Center — Housing Equity Q3 2020

Prosperity Now Q2 2021

© 2022 Fannie Mae Equitable Housing Finance Plan 4 5
Outreach to the Black community was a frequent topic of conversation with nonprofit 

organizations and community groups. There was much discussion about ensuring the 

Black community is aware of and has access to products and assistance programs 

that could benefit the community. Conversations with housing-focused organizations 

had greater emphasis on counseling and educational efforts for both potential 

future homeowners and current homeowners. There was also discussion about 

the importance of collective action and bringing multiple stakeholders together to 

improve racial equity in housing. These groups also discussed the importance of 

homeownership in building intergenerational wealth and the importance of growing 

Black homeownership as a strategy to grow wealth in the Black community. 

Many of the ideas in this plan and other actions we are taking with an indirect 

benefit to racial equity were vetted with the Fannie Mae Affordable Housing Advisory 

Council in Q4 2021. Specifically, the group provided positive feedback on the ideas 

of monitoring forbearance outcomes with a lens of racial equity, incorporating rental 

payment data in underwriting, combating appraisal bias, reducing closing costs, and 

improving access to down payment assistance.

The Fannie Mae Affordable Housing Advisory Council includes representatives from 

seven national community organizations.

Consumers

In late 2020, we surveyed more than 650 Black consumers who were eligible or close 

to being eligible for DU approval, and conducted 26 in-depth interviews, to better 

understand the barriers to homeownership faced by the Black community. This 

was foundational to shaping our understanding of the Black housing journey. As the 

actions detailed in this Plan are designed to address these obstacles, this input from 

the Black community undergirds each action outlined in this Plan.

In Q3 of 2021 Fannie Mae conducted a quantitative research study of 2,550 renters, 

including 714 Black renters, to develop a deeper understanding of the renter’s 

experience, pain points, and needs throughout their renter journey, particularly 

that of low-moderate-income and historically marginalized groups.In addition

we conducted 10 qualitative in-depth interviews among low-to-moderate 

income/disadvantaged renters (including eight Black/Hispanic renters), resulting 

in synthesized insights from both phases of the research. The renter journey 

encompasses four phases: moving in, during the lease term (including in crisis), lease 

renewal, and move out.The intended audience was a cross section of the rente

population with a focus on low and moderate AMI, as well as race.

In Q4 2021, we engaged with 30 prospective first-time homebuyers on multiple 

occasions to solicit feedback about the content and user experience of HomeViewTM, 

our homeownership education course. These consumers participated in an online 

© 2022 Fannie Mae Equitable Housing Finance Plan 4 6
research panel, providing their reactions and feedback. 50% of the consumers 

engaged were from underserved communities, and most of them had annual 

household income under $60,000.

Governmental agencies

Organization Date of consultation

Colorado Housing Q3 2020

Illinois Housing Development Authority Q3 2020

Massachusetts Housing Finance Agency Q4 2020, Q3 2021

NY Mortgage Coalition Q3 2020

NY SONYMA Q3 2020

Ohio Housing Industry Partners Q3 2020

Virginia Housing Development Authority Q1 2021

West Virginia Housing Development Fund Q2 2021

The most discussed topic during consultations with governmental agencies was 

the importance of outreach to the Black community, including information-sharing, 

disseminating information on assistance programs (especially down payment 

assistance programs), and support for programs to grow diversity in the housing 

industry. There were many pilot programs and initiatives discussed, which varied in 

intent, scale, and target geography.

Lenders

Consultations specific to special purpose credit programs

In September 2021, Fannie Mae invited 10 lenders to participate in a research 

engagement to understand whether they are pursuing Special Purpose Credit 

Programs (SPCPs) to support their racial equity strategies, and if so, how are they 

leveraging them in their mortgage businesses. Six lenders participated in these 

discussions. These lenders spanned national / international depositories, regional 

depositories, and non-depositories.

Each of these interviews included Fannie Mae’s Business Account Management 

teams, Racial Equity, Fair Lending, and Legal departments. Interviewees from 

lenders included senior leadership from Product Strategy, Fair Housing, Compliance, 

Affordable Lending, and Diversity, Equity, and Inclusion. 

© 2022 Fannie Mae Equitable Housing Finance Plan 4 7
All six lenders were eager to support borrowers in underserved communities; 

however, each lender cited legal concerns related to regulatory discrepancies 

regarding oversight of SPCPs. Only two of the six lenders had implemented SPCPs 

at the time of the interview. Each lender cited SPCPs as a high priority for 2022 and 

welcomed the opportunity to partner with Fannie Mae.

Outside of the discussions specific to SPCPs, conversations with eight lenders and 

participation in two multi-lender coalitions informed development of this Plan. 

Calls with lenders often included discussion of their plans to create place-based 

efforts to increase homeownership, which often had the end goal of making more 

loans to Black borrowers in targeted geographies. Strategies discussed to achieve 

this goal included educational and outreach efforts to both prospective and current 

homeowners and developing mortgage products and programs, such as down 

payment assistance to better serve the Black community. Lenders also expressed 

interest in diversifying their workforces and contributing to diversity within the 

housing industry more broadly through Fannie Mae-led initiatives like Future Housing 

Leaders and the Appraiser Diversity Initiative, as well as through lender-specific goals 

and programs.

In addition to the consultations above, Fannie Mae asked lenders to provide 

information about their ESG and racial equity efforts and practices. As part of its 

annual survey of Single-Family lenders, Fannie Mae solicited ideas on how it could 

more effectively contribute to racial equity in housing. These questions comprised 

the most significant free-response section of the survey and were answered by nearly 

2,000 employees of Single-Family lenders and contributed to our selection of the 

actions included in this plan. 

Other industry participants

Organization Date of consultation

Consumer Data Industry Association Q1 2021 (x2)

Credit Karma Q4 2020 (x2)

Equifax Q1 2021, Q2 2021

ESUSU Q2 2021

Experian Q1 2021, Q2 2021

Fair Isaac Q2 2021

Finastra Q3 2020

TransUnion Q1 2021, Q2 2021 (x2)

VantageScore Q2 2021

© 2022 Fannie Mae Equitable Housing Finance Plan 4 8
These organizations are working to leverage their competencies in analytics 

and development of customer-facing tools. The above focus on providing data 

to decision-makers, creating solutions to empower the Black community, and 

propagating change through the housing finance industry. A specific topic frequented 

in these conversations was reporting rental payment data to credit bureaus and 

inclusion of such data on credit reports. 

These organizations also expressed interest in diversifying their workforces and 

contributing to workforce diversity in the financial services industry.

Additional relevant consultations

Organization Date of consultation

FinRegLab Q3 2021

National Consumer Law Center Q2 2021

National Council of State Housing Agencies Q3 2020

National Housing Conference Q3 2021

PERC Q2 2021

Urban Institute Q2, Q3 2021

These discussions did not have an explicit focus on racial equity but did contribute to 

our development of the solutions proposed in this plan. These conversations often 

included discussion of strategies for more effectively serving low-income borrowers, 

particularly leveraging rental payments, utilities, and other data in underwriting. 

B. Governance & strategy execution

Fannie Mae is currently working to develop internal governance and procedures 

around the tracking and progress of our Plan execution. The governance and strategy 

execution will serve to provide a unified, centrally administered approach to Plan 

management within Fannie Mae and will closely follow existing processes in place 

for tracking status against enterprise-level goals and initiatives. Our process includes 

regular status reporting to senior management on the completion of deliverables as 

set forth in the Plan, with evidence to support our progress to-date. It also includes 

the identification of risks or other issues that may endanger our ability to fully execute 

against the deliverable(s) within the established timeframe. Activities deemed to be offtrack are escalated as necessary and will identify the root cause and a plan of action.

© 2022 Fannie Mae Equitable Housing Finance Plan 4 9
Implementation of actions described in the Plan will remain subject to prior 

notice to FHFA, and where appropriate prior approval by FHFA, through existing 

governance requirements. 

Modifications to the Plan based on market conditions, additional opportunities, or 

other factors will follow established internal governance processes to assess and 

recommend changes and remain subject to prior review and approval by FHFA.

In addition to our internal plan governance and commensurate with the FHFA 

Directive, Fannie Mae and FHFA will continue recurring meetings, monitor progress 

data, and review the success measurements throughout the timeframe of the Plan.

C. Request for information (RFI): summary of responses 

and plan alignment

FHFA and the Enterprises received input and information relevant to the 

development of this Plan through a formal Request for Information issued by FHFA 

on September 7, 2021. Interested parties were able to submit a written response to 

the RFI through most of the months of September and October 2021 and were able 

to attend a “listening session” to provide comments verbally on September 28, 2021. 

In total, 53 organizations responded to the RFI and provided ideas for consideration. 

Most of these responses came from lenders, trade associations, think tanks, 

nonprofit organizations, and housing counselors.

Most of the RFI responses included ideas in one or more of three key areas: 

1. Credit and collateral policy/affordable housing programs: discussions 

of the need for the Enterprises to contribute to an equitable housing finance 

system by making credit decisioning more equitable, making the appraisal 

process more equitable, and creating loan products or programs designed to 

reduce costs for historically underserved populations.

2. Partnership and transparency: comments urging the Enterprises to 

consult with and incorporate the perspectives of people representing 

communities of color and organizations serving those populations, better 

leverage and/or allow other stakeholders to access their data, or support 

organizations helping people of color with housing (e.g., housing counselors).

3. Affordable housing supply (single-family and multifamily): comments 

suggesting the Enterprises focus on growing the supply of affordable singlefamily and multifamily housing for purchase and rental. 

Themes emerged within each of these three areas. Those noted as primary themes 

were mentioned often, while secondary themes were mentioned several times, but 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 0
with less regularity than the primary themes. Each of the themes is detailed below. 

After the description of each theme is discussion of the extent to which we believe 

this Plan addresses the theme.45

Credit and collateral policy/affordable housing programs

Primary themes

Mortgage loan programs for communities of color: Suggestions to ensure the 

Enterprises have mortgage products and/or programs tailored to the specific needs 

of people of color. The most commonly discussed group was the Black community. 

The Plan addresses these suggestions. As noted in the Introduction to the Plan, the 

initial focus of our Plan will be on the needs of Black homeowners and renters. Each 

action in the Plan was included to address specific obstacles faced by Black renters 

and borrowers in their housing journey. In particular, the SPCP pilots included in 

the Plan contain actions that will have a specific and exclusive focus on removing 

barriers to homeownership faced by the Black population. While our solutions will 

seek to address the effects of discrimination against Black homeowners and renters, 

they will benefit other underserved populations, as well. As our Equitable Housing 

Finance Plan matures and evolves, in the next three years and beyond, we will 

expand our focus to the challenges faced by other groups who have been historically 

underserved by the housing finance system.

Modernize Automated Underwriting Systems (AUS) / Credit Decisioning Models: 

These comments asked the Enterprises to make credit decisioning (both within their 

companies and throughout the industry) more inclusive. Most of these comments 

suggested deemphasizing FICO scores in favor of incorporating data not traditionally 

on credit reports (e.g., cash flow from bank statements, rental payment history). 

The Plan addresses these suggestions and includes actions aimed at making credit 

decisioning more inclusive by improving outcomes for consumers who lack a credit 

score or have limited traditional credit history. This includes several actions to 

incorporate positive rental payment history in our underwriting processes. The Plan 

also includes actions to implement cash-flow underwriting and more automated 

credit decisioning for borrowers with no credit score. We will also grow the frequency 

with which our multifamily borrowers report rental payments to credit bureaus, 

which will enable other creditors to incorporate such data in their credit decisioning.

45 Most comments not captured in one of the three areas above were out-of-scope for Fannie Mae’s development of this plan. Some of these comments, such as those 

suggesting amendments to the Preferred Stock Purchase Agreement (PSPA) and those noting the impact of zoning regulations on housing supply, are out of Fannie 

Mae’s control. Others, such as discussions of the importance of language access / translation of information and housing equity for specific non-Black racial and 

ethnic groups, will be considered in future years as our focus broadens beyond the Black community.

© 2022 Fannie Mae Equitable Housing Finance Plan 5 1
Enterprise upfront fees (LLPAs, delivery fees): Respondents expressed concern 

that risk-based pricing disproportionately impacts people of color. Suggestions for 

remedying this concern included eliminating LLPAs altogether and ensuring the 

Enterprises regularly review pricing to ensure it accurately represents risk and is as 

low as possible. 

This Plan partially addresses these suggestions through the implementation of 

Special Purpose Credit Program pilots, which may reduce or cap LLPAs as one of the 

levers to reduce obstacles for prospective Black homeowners. The Plan addresses 

broader cost barriers through actions aimed at alleviating the disproportionate 

closing cost burden on historically underserved borrowers. Broad pricing changes are 

outside the scope of this Plan.

Down payment assistance (DPA): Comments suggested the Enterprises actively 

connect lenders and borrowers with DPA programs and support organizations 

managing and providing funds for such programs through technical assistance and 

other means. 

The Plan addresses many of these suggestions, as does other Fannie Mae work 

contemplated outside this Plan. This Plan includes pilot programs where Fannie Mae 

and participating lenders will provide Black borrowers with DPA as part of a Special 

Purpose Credit Program. Outside of this Plan, we are pursuing significant additional 

work to increase use and build awareness of DPA programs. While these efforts are 

not included in this Plan because they are aimed at increasing usage of DPA programs 

more broadly, we believe they will benefit Black borrowers by making DPA funds 

more accessible. 

Appraisal guidelines: Comments described the systematic nature of appraisal 

bias in communities of color, noting that a reliance on comparable and historical 

valuations can help perpetuate such bias. 

The Plan addresses these suggestions. The Valuation Modernization initiative aims 

to combat appraisal bias in many ways and is designed to drive more equitable 

outcomes for people and communities of color. Furthermore, the Appraiser Diversity 

Initiative aims to increase representation of communities of color in the appraisal 

industry. Over the long-term, we believe these collective efforts will help to reduce 

appraisal bias against Black homebuyers and communities of color. 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 2
Secondary themes

Special Purpose Credit Programs (SPCPs): These comments encouraged the 

Enterprises to work with lenders and community groups to provide greater liquidity 

for mortgages originated through SPCPs. They also called for greater regulatory 

clarity on the legality of various elements of SPCPs, noting that such clarity could 

enhance industry adoption of them.

The Plan addresses these concerns. It contains several SPCP pilots that would reach 

Black consumers, with the goal of making Fannie Mae’s purchasing of SPCP loans as 

routine as any other loans we currently buy. The Plan does not address regulatory 

clarity, as the subject is outside of our control. However, recent HUD clarifications on 

the viability of these programs under ECOA may encourage broader housing industry 

participation in these programs.

Small-balance loans: Comments in this area emphasized the importance of 

small-dollar loans to borrowers of color, that borrowers have difficulty originating 

such loans, and suggested the Enterprises use their positions to enhance liquidity 

in this market.

The Plan does not address these suggestions directly. However, our recently 

published research on closing cost disparities indicates that regressive closing costs 

are a major barrier for borrowers on small balance loans. This Plan addresses closing 

costs through several actions, including the Special Purpose Credit Program pilots 

and other pilots and actions to reduce the disparate burden of closing costs on lowincome and borrowers of color. 

Servicing and loss mitigation: These comments urged the Enterprises to study 

and monitor racial disparities in servicing, loan modification, and loss mitigation. 

Suggestions also included ensuring servicers are implementing policies fairly 

and accurately.

The Plan addresses these suggestions. It includes monitoring racial disparities in 

forbearance and loss mitigation outcomes at the servicer level, and piloting solutions 

to address disparities. It also includes helping communities of color develop plans 

to mitigate the impact of climate change on their housing stock, which will lead to 

more equitable outcomes in the long-term. The Plan also includes an expansion of 

counseling services for borrowers and renters facing hardship.

Climate risk: These comments noted and called upon the Enterprises to mitigate 

the disproportionate impact of climate change and the hazards it causes for 

communities of color. 

The Plan addresses these suggestions at the community level. The Plan includes 

an effort to provide climate analytics to communities of color, which will assist 

with planning and policy related to mitigating the impact of climate change. These 

analytics may also help these communities compete for grants to fund efforts to 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 3
mitigate the impact of climate change. Outside of this Plan, Fannie Mae is exploring 

broader educational efforts to raise awareness of the importance of flood insurance, 

which will assist with planning and mitigating the financial impact of climate change 

at the individual borrower level. 

Real Estate Owned (REO) standards: These comments discussed the idea 

of ensuring REO properties are sold to owner-occupants, rather than investors. 

Such sales help ensure these homes contribute to single-family supply and help 

communities with longer-term homeownership and stabilization efforts.

The Plan does not address these suggestions directly. However, Fannie Mae is 

undertaking activities outside of this Plan that are aimed at promoting the sale of our 

REO properties to owner-occupants. This includes repairing and providing deeper 

rehabilitation investments into our REO inventory, which has been shown to drive 

more sales to owner occupants. In addition, we continue to partner with community 

members such as nonprofits and public entities to provide an exclusive first look and 

customized pricing to allow these members to purchase REO inventory to fulfill their 

respective mission objectives. Fannie Mae deploys this program through a process 

and technology called Community First and will continue to enhance this experience 

and process for its community member partnerships. 

Partnership and transparency

Primary themes

Community/stakeholder engagement: These comments called for the Enterprises 

to regularly consult with members of communities of color, as well as organizations 

serving these communities (particularly those led by members of the communities 

they serve). Many respondents expressed their interest and willingness to participate 

in such consultations. Industry groups expressed their interest in helping the 

Enterprises make such connections.

The Plan addresses some of these comments, and we welcome broad industry 

engagement and community participation in our efforts. Community engagement 

will be an integral part of our work on Special Purpose Credit Programs. In addition, 

we expect to partner closely with community groups, nonprofit organizations, and a 

broad range of industry stakeholders as we undertake the actions described in this 

Plan. This is particularly true for the variety of pilot activities that we have included in 

the Plan, where we are aiming to test the impact and effectiveness of different actions 

in addressing the key obstacles in the housing journey. Fannie Mae has regularly 

consulted with organizations interested in advancing racial equity in housing and 

the Black community over the past two years (see the “Summary of Consultations” 

section of this Plan for more detail). For example, in 2020 we surveyed 650+ Black 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 4
renters who were eligible or close to being eligible for DU approval, and conducted 26 

in-depth interviews, to better understand the barriers to homeownership faced by 

the Black community. 

Democratize the Enterprises’ property data/analysis: These comments called 

for the Enterprises to release more of their proprietary data for use by interested 

stakeholders and/or more effectively leverage such data to analyze and report on 

discrepancies in housing outcomes for different racial groups.

The Plan addresses these comments while maintaining compliance with data privacy 

regulations. The closing cost calculator, for example, is a tool that will leverage 

Fannie Mae data, providing it to consumers and lenders in an easy-to-use format 

while adhering to privacy concerns. We also plan to publish research on disparities 

in outcomes when possible, as exemplified by our recent analysis of closing costs, 

which highlights how they vary across racial and ethnic groups. 

Housing counseling: These comments suggesting the Enterprises should 

support housing counseling and encourage consumers to engage with housing 

counselors, as well as develop or provide more comprehensive homebuyer and 

homeowner education. 

The Plan addresses these comments. It includes actions to expand post-purchase 

and post-modification counseling available to borrowers needing default, 

foreclosure, or eviction protection, disaster recovery, or post-mod counseling. The 

SPCP pilots also include expanded post-purchase counseling services, and this Plan 

contains numerous efforts providing homebuyer and homeowner education. 

Affordable housing supply 

(single-family and multifamily):

Primary themes

Inadequate supply of affordable housing: Comments in this area centered on 

the need to grow the supply of affordable single-family housing. Some comments in 

this area noted there is very little the Enterprises can do to grow affordable supply. 

Suggestions for growing affordable supply included the Enterprises engaging in 

targeted grant-making and changes to public policy. 

The Plan has some alignment with increasing the supply of affordable housing. Efforts 

to better equip communities of color with data and analytics on climate change could 

help these communities mitigate the impact of climate change, and thereby preserve 

affordable supply over the long-term. However, we note that Fannie Mae’s role as a 

provider of secondary market financing means that the direct actions that we can 

take to increase supply in specific communities is limited.

© 2022 Fannie Mae Equitable Housing Finance Plan 5 5
Affordable rental housing: These comments discussed the need to grow the 

supply of affordable rental units. Ideas mentioned included the importance of the 

Low-Income Housing Tax Credit (LIHTC), creating or extending protections (e.g., 

eviction protection) for renters, and the need to concentrate supply in areas of social 

and economic opportunity. 

The Plan does not address these comments. However, we note that Fannie Mae 

resumed LIHTC equity activities in 2018 to provide a reliable source of capital for 

affordable rental housing and underserved markets, providing over $1.5 billion of 

equity investments since that time. Outside of the Plan, we will continue to conduct 

a number of activities in the course of our Multifamily business activities that benefit 

tenants and preserve affordable rental housing.

Secondary themes

Manufactured housing: These comments suggested the Enterprises use 

manufactured housing as a tool to contribute to reducing racial disparities in 

housing. Specific suggestions included working to reduce the number of loans 

for manufactured housing classified as chattel loans and building awareness of 

manufactured housing as a low-cost option. 

The Plan does not address these comments. While these efforts are not included in 

this Plan, Fannie Mae purchases loans financing the sale of manufactured housing 

through our Single-Family business, including a change to our Selling Guide in late 

2020 that expanded our eligibility criteria to allow expanded eligibility to allow loans 

secured by single-width manufactured homes. We finance manufactured housing 

communities through our Multifamily business, and in October 2021, we announced 

our objective to require tenant site lease protections for 100% of the tenant sites for 

each new manufactured housing community loan that participates in our program. In 

addition, our Duty to Serve Plans are aimed at advancing creative financing solutions 

to help homebuyers and renters access the benefits of manufactured housing. 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 6
D. Special purpose credit program (SPCP) strategy overview 

The Black Housing Journey lays out a series of obstacles, and Fannie Mae’s Equitable Housing Finance Plan 

proposes pilots to address them. Some of the challenges will be addressed through SPCPs and are embedded 

throughout the Plan. The chart below summarizes the overall SPCP strategy.

Special Purpose Credit Programs Strategy

Objective: To determine which types of SPCPs increase: 

• Engagement. Black consumer engagement measured by 

requests for information from participating lenders;

• Applications. The number of applications made to participating lenders 

from Black consumers (whether for conventional or government loans); and 

• Loan Deliveries. The number of loans to Black borrowers purchased 

by Fannie Mae in the designated geographies/programs.

Markets: The SPCPs will be tested in predominantly Black geographic markets and/or with recipients of 

funds from local government programs established to address housing discrimination and wealth inequity. 

We have begun analyzing geographies with a high concentration of Black consumers, overlaying these areas 

with data about housing supply, affordability, historic redlining, legal settlements and more, all in service of 

identifying the areas where SPCPs have the best chance of achieving the Plan’s objectives. In 2022, we will 

launch 3 – 5 SPCPs for first-time homebuyers with at least one in each of the first three categories below with 

a lender active in the specific geographic market.

Reduce Hurdles for SPCP Participation: Identify barriers to lender participation in SPCPs through a 

market insights survey and create opportunities for increased participation (e.g., clarification or changes to 

our Selling Guide) so that loans can be salable to Fannie Mae.

© 2022 Fannie Mae Equitable Housing Finance Plan 5 7
SPCP Test Scenarios Description

Eligibility 

Enhancements 

• Create a HomeReady® or similar program specifically for use 

with our SPCP pilots. This program would extend the benefits 

of the HomeReady46 product to borrowers with income levels 

greater than 80% of area median income in the target SPCP 

areas who are purchasing or refinancing a principal residence. 

Potential benefits include lower down payment requirements, 

underwriting flexibilities, such as expanded sources of funds 

for down payment and closing costs, mortgage insurance (MI) 

cost reductions through lower-than-standard MI requirements 

and reduced pricing through lower loan-level price adjustments 

(LLPAs). These pilots would allow Fannie Mae to test which of these 

benefits, or combinations of benefits, are the most effective.

• In addition, we plan to test expanded credit criteria, 

such as allowing for greater usage of boarder income 

in order to address consumer needs. 

• We will also encourage SPCP pilot lenders to use positive 

rental payment data in DU as part of their loan process in 

order to help increase credit access for borrowers who lack 

traditional credit scores with thin credit histories.

Down payment 

Assistance (DPA)

Allow DPA funds, in some cases at a substantial level, from one or more 

of a variety of sources:

• Lender funded

• Fannie Mae funded 

• Nonprofit funded 

• Housing Finance Agency or government funded, or

• A combination of the above

Closing Cost 

Reduction 

Reduce borrower costs for settlement services and expenses, such as:

• Appraisal Costs 

• Title Insurance

The costs will be reduced by one or more of: concessions from the service 

provider, credits from Fannie Mae, or alternative services, such as appraisal 

products or home inspections 

46 Fannie Mae’s HomeReady program is generally limited to borrowers with incomes less than or equal 80% of the area median income.

© 2022 Fannie Mae Equitable Housing Finance Plan 5 8
Local government programs

Local government programs established to address housing discrimination and wealth inequity occupy a 

special place in Fannie Mae’s Plan. These programs augment our general geographic approach to identifying 

Black consumers. By leveraging a local government’s determination of which Black consumers should 

receive their program’s funds, Fannie Mae will be able to identify a pool of potentially qualified applicants. 

Local government 

programs

• Identify opportunities for Fannie Mae to work with eligible recipients 

of funds from local government programs established to address 

housing discrimination and wealth inequity. Apply the SPCP scenarios 

described above as appropriate. Listen to stakeholders in communities 

with these programs to learn what help they most need. Assess 

opportunities to bring industry stakeholders to the table (e.g., lenders, 

mortgage insurance companies, etc.) to further help eligible recipients. 

Document learnings and explore where we can apply to other 

emerging programs so that these loans are salable to Fannie Mae.

Sustainability Description

Sustainability. SPCPs allow lenders to grant credit to applicants who would not ordinarily qualify under the 

lender’s customary standards of creditworthiness. Fannie Mae wants to not only increase access to credit 

but also explore ways to increase sustainability for Black homebuyers. To accomplish this, Fannie Mae will 

work with lenders to add one or more of the following sustainability features to their SPCPs. 

Sustainability 

add-ons 

• Expanded homebuyer education and post-purchase 

homeownership counseling.

• Explore additional features to support ongoing homeownership 

stability — for example, mortgage reserve accounts, 

home warranty products, or flood insurance. 

© 2022 Fannie Mae Equitable Housing Finance Plan 5 9
E. Summary of planned actions 

Find a summary list of all planned actions noted in the order they appear in this plan. This chart 

indicates which item in the directive the plan addresses. It also indicates whether an action is a 

pilot and if it addresses any RFI comments.

Action Journey stage

PilotAddresses RFIcomments

1. Pilot renters’ rental payment reporting across the multifamily (MF) 

industry to help Black renters with no credit score establish credit 

history and help those with low credit scores to increase them.

HOUSING 

PREPARATION

✓ ✓

2. Pilot options to defray and/or decrease the cost of renter security 

deposits. Decreasing renter security deposits would help Black 

renters qualify for quality rental housing and help them increase 

their savings.

HOUSING 

PREPARATION

✓

3. Build and Launch Fannie Mae First-Time Homeownership 

Education Curriculum that aims to provide consumers with 

education on the full spectrum of the homebuying process. 

RENTING & 

BUYING

4. Execute SPCP Pilots to help support the expansion of 

homeownership eligibility and availability of down payment 

assistance (DPA), while exploring ways to reduce SPCP 

participation hurdles for lenders.

RENTING OR 

BUYING

✓ ✓

5. Expand Eligibility and Access for credit-invisible borrowers 

through automated underwriting enhancement and positive 

rental data implementation to support the expansion of eligibility 

for Black Consumers.

RENTING OR 

BUYING

✓ ✓

6. Enhance Eligibility & Underwriting via Rental Reporting to Credit 

Bureaus to support the expansion of eligibility for Black Consumers.

RENTING OR 

BUYING ✓

7. Execute SPCP Pilot for Appraisal Products/

Reimbursements to support the reduction of 

borrower closing costs for Black homebuyers.

RENTING OR 

BUYING

✓ ✓

© 2022 Fannie Mae Equitable Housing Finance Plan 6 0
Action Journey stage

PilotAddresses RFIcomments

8. Reduce Closing Costs for Black consumers to help support the 

removal of the barrier of insufficient funds at closing (down 

payment plus closing costs) faced by Black homeowners and 

prospective homeowners.

RENTING OR 

BUYING

✓ ✓

9. Launch Closing Cost Calculator Tool RENTING OR 

BUYING

✓ ✓

10. Valuation Modernization to support the creation of an equitable 

appraisal process for Black households and communities of color.

RENTING OR 

BUYING

✓ ✓

11. Expand Appraiser Diversity Initiative (ADI) to enhance 

economic opportunities for Black people and over the 

long-term, reduce appraisal bias against Black homebuyers, 

homeowners, and communities.

RENTING OR 

BUYING

✓

12. Expand Future Housing Leaders® (FHL) to increase the representation 

of Black people in the housing industry to improve access to 

economic opportunities while creating an industry that better 

reflects the diversity of the nation.

RENTING OR 

BUYING

✓

13. Execute SPCP Pilot with the addition of Homebuyer Education and 

Post-Purchase Counseling to strengthen ongoing borrower stability.

MOVE IN & 

MAINTAIN

✓ ✓

14. Execute SPCP Pilot with add-on features to strengthen ongoing 

borrower stability.

MOVE IN & 

MAINTAIN

✓ ✓

15. Expand counseling services for borrowers and renters 

facing hardship.

MOVE IN & 

MAINTAIN

✓

16. Provide ongoing oversight of Servicer Forbearance/

Loss Mitigation efforts

MOVE IN & 

MAINTAIN

✓ ✓

17. Provide climate analytics to empower communities with data, 

enabling them to make a stronger case for change and resources.

MOVE IN & 

MAINTAIN

✓ ✓

© 2022 Fannie Mae Equitable Housing Finance Plan 6 1
F. Summary of acronyms

An alphabetical list of acronyms and their descriptions used 

in the Plan and its supporting documents.

Acronym Description

ADI Appraiser Diversity Initiative 

AMI Area Median Income 

API Application Programming Interface 

CDIA Consumer Data Industry Association 

CFPB Consumer Financial Protection Bureau 

CU® Collateral Underwriter® 

DPA Down Payment Assistance 

DU® Desktop Underwriter® 

ECOA Equal Credit Opportunity Act 

ESG Environmental, Social, and Governance 

ESR Economic & Strategic Research 

FHFA Federal Housing Finance Agency 

FHL Future Housing Leaders®

GSE Government-Sponsored Enterprise 

HBCU Historically Black College or University 

HFA Housing Finance Agency 

HOLC Home Owners’ Loan Corp. 

KBD Key Business Decision 

LIHTC Low-Income Housing Tax Credit 

LLPA Loan-Level Price Adjustments 

LMI Low- and moderate-income

LTV Loan to Value ratios

MF Multifamily 

PSPA Preferred Stock Purchase Agreement 

QC Quality Control 

RFI Request for Information 

SPCP Special Purpose Credit Programs 

UAD Uniform Appraisal Dataset

© 2022 Fannie Mae Equitable Housing Finance Plan 6 2
G. Summary of references & sources 

A summary of references and other sources used throughout the plan:

1. Desktop Underwriter® (DU®) – the industry-leading underwriting system – helps lenders efficiently complete 

credit risk assessments to establish a home loan’s eligibility for sale and delivery to Fannie Mae with easy-touse, powerful tools.

2. 2019 American Community Survey and the 2019 Current Population Survey/Housing Vacancies and 

Homeownership Survey.

3. 2019 American Community Survey.

4. Survey of Consumer Finances 2019.

5. “The Future of Headship and Homeownership” Goodman, Zhu, 2021.

6. “Real Denial Rates” Goodman, Bai, and Li, 2018.

7. “Barriers to Entry: Closing Costs for First-Time and Low-Income Homebuyers,” Mota and Palim, 2021.

8. Fannie Mae National Housing Survey, 2nd quarter 2021.

9. “Examining the Black-white wealth gap,” McIntosh, Moss, Nunn, Shambaugh, February 2020.

10. Survey of Consumer Finances 2019.

11. Fannie Mae National Housing Survey, Q4 2019.

12. Fannie Mae National Housing Survey, Q2 2021.

13. Fannie Mae National Housing Survey, Q2 2021.

14. Fannie Mae is engaging with credit rating agency representatives to aid in the development of uniform 

standards for rental reporting in credit reports.

15. The Transition to Home Ownership and the Black-White Wealth Gap – Kerwin Kofi Charles and Erik Hurst, 

The Review of Economics and Statistic, 2002, vol. 84, issue 2, 281-297 https://econpapers.repec.org/article/

tprrestat/v_3a84_3ay_3a2002_3ai_3a2_3ap_3a281-297.htm.

16. “Housing Discrimination Against Racial and Ethnic Minorities 2012,” HUD, 2013.

17. Zillow Group Consumer Housing Trends Report, 2019.

18. 2018 Home Mortgage Disclosure Act data.

19. “Data Point: Credit Invisibles,” CFPB, 2015.

20. Fannie Mae National Housing Survey responses, Q3 2021.

21. “Barriers to Entry: Closing Costs for First-Time and Low-Income Homebuyers,” Mota and Palim, December 2021.

22. 2018 Mortgage Qualification Research - https://singlefamily.fanniemae.com/media/21466/display.

23. All consumer education modules and training materials will be regularly updated to assure they remain current 

and actionable for new audiences.

24. Goodman, L., Bai, B., Li, W. (2018). Real Denial Rates: A Better Way to Look at Who Is Receiving Mortgage Credit 

https://www.urban.org/sites/default/files/publication/98823/real_denial_rates_2.pdf.

25. DPAs could come from local, community, or governmental sources.

26. Fannie Mae’s HomeReady program is generally limited to borrowers with incomes less than or equal to 

80% of Area Median Income.

27. Credit invisible is defined as consumers without records in nationwide credit reporting agencies according 

to the Consumer Financial Protection Bureau (CFPB). These customers have no credit information (which is 

different from customers with credit information but no score) and are often Black, Hispanic, or of low income. 

These customers face challenges in accessing credit. 

© 2022 Fannie Mae Equitable Housing Finance Plan 6 3
28. Cash-flow underwriting: Use of summarized data from digital bank statement records covering such items as 

transaction patterns, balance trends over time, and other observations.

29. Collateral Underwriter® (CU®) is a web-based application provided at no charge to help lenders manage collateral 

risk as part of their underwriting and quality control processes. The application uses appraisal data and 

advanced analytics to help identify and research appraisals with overvaluation, appraisal quality, or property 

eligibility/policy compliance risks.

30. https://www.zippia.com/real-estate-agent-jobs/demographics/.

31. Fannie Mae National Housing Survey, Q2 2021.

32. Survey of Consumer Finances 2019.

33. “Trading Equity for Liquidity: Bank Data on the Relationship Between Liquidity and Mortgage Default,” JPMorgan 

Chase & Co. Institute, 2019.

34. “Is Timing Everything? Race, Homeownership and Net Worth in the Tumultuous 2000s,” Newman, Holupka, 2015.

35. “The Assessment Gap: Racial Inequalities in Property Taxation,” Avenancio-Leon, Howard, 2021.

36. “Flood Exposure and Social Vulnerability in the United States,” Tate, Rahman, Emrich, et al, 2021.

37. “First National Flood Risk Assessment,” First Street Foundation, 2020.

38. “The Homeownership Experience of Low-Income and Minority Families” Abt Associates 2006. 

39. Fannie Mae Multifamily Renter Needs Research, August 2021.

40. Survey of Consumer Finances 2019.

41. “Flood Exposure and social vulnerability in the United States,” Tate, Rahman, Emrich, et al. January 2021.

42. Key risks for this initiative include the availability of data or accurate models on the long-term prognosis for 

localized climates, dependence on a partner to provide accurate analytics, and dependence on governments or 

community organizations to fund and execute solutions to mitigate the impact of climate change.

43. While the measures each community takes to mitigate climate risk will depend on a variety of factors (e.g., 

funding, available resources), we seek to empower communities with data to enable them to make a stronger 

case for change and resources. Access to analytics can help disadvantaged communities develop action plans 

that may help them compete for state or federal grants targeted towards climate resiliency.

44. A KBD is a decision that may expose Fannie Mae to significant, new, or unusual risk - including strategic, 

reputational, market, funding and liquidity, operational, credit, or compliance risk.

45. Most comments not captured in one of the three areas above were out-of-scope for Fannie Mae’s development 

of this plan. Some of these comments, such as those suggesting amendments to the Preferred Stock Purchase 

Agreement (PSPA) and those noting the impact of zoning regulations on housing supply, are out of Fannie Mae’s 

control. Others, such as discussions of the importance of language access / translation of information and 

housing equity for specific non-Black racial and ethnic groups, will be considered in future years as our focus 

broadens beyond the Black community. 

46. Fannie Mae’s HomeReady program is generally limited to borrowers with incomes less than or equal 80% of 

the area median income.

© 2022 Fannie Mae Equitable Housing Finance Plan 6 4