The 2022 Equitable Housing Finance Plan Performance Report

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The 2022 Equitable Housing Finance Plan Performance Report

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Table of Contents 

Table of Contents..........................................................................................................................................2

I. 2022 Progress Summary........................................................................................................................4

II. Progress and Highlights: The 17 Equitable Housing Finance Plan Actions in 2022 ...............................6

Action: 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. (“Action 

1” in original plan.).................................................................................................................................6

Action: 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. (“Action 2” in original plan.)..............................................................................................7

Action: 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. (“Action 3” in 

original plan.) ........................................................................................................................................8

Action: 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. Action: Execute SPCP Pilot to support the reduction of borrower closing costs for 

Black homebuyers via appraisal products, appraisal reimbursements, and/or title products. ............8

Action: 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. (“Action 14” in original plan.)................................................................................................9

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

strengthen borrower housing stability over time. (“Action 13” in original plan.)..................................10

Action: 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. (“Action 5” in original plan.).....................................................................................10

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

expansion of eligibility for Black consumers. (“Action 6” in original plan.)...........................................12

Action: 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. (“Action 8” in original plan.) ......................................................................12

Action: Launch Closing Cost Calculator Tool (“Action 9” in original plan.)...........................................13

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

households and communities of color. (“Action 10” in original plan.) .................................................14
The 2022 Equitable Housing Finance Plan Performance Report

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Action: 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. (“Action 11” in original plan.).............................15

Action: 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. (“Action 12” in original plan.).........................................................16

Action: Expand counseling services for borrowers and renters facing hardship. (“Action 15” in original 

plan.) ...................................................................................................................................................17

Action: Provide ongoing oversight of Servicer Forbearance/Loss Mitigation efforts. (“Action 16” in 

original plan.) ......................................................................................................................................18

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

stronger case for change and resources. (“Action 17” in original plan.) ...............................................19

III. Data & Research Considerations .........................................................................................................20

IV. Outreach Considerations ....................................................................................................................21

V. Equitable Housing through Underwriting ...........................................................................................24

A. Application acceptance rate in Desktop Underwriter by race/ethnicity, 2018-2022.......................24

B. Single-family loan acquisitions by borrower classification, 2018-2022...........................................26

C. Other underwriting changes in 2022 ...............................................................................................28

D. Other underwriting innovations ......................................................................................................29

VI. Summary of Outcomes .......................................................................................................................29

A. Consumers Served ..........................................................................................................................30

B. Underwriting Innovations ...............................................................................................................33

C. Homeowners Served - Foreclosure Alternatives .............................................................................33

D. Consumers Served – Education & Counseling Activities .................................................................34
The 2022 Equitable Housing Finance Plan Performance Report

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I. 2022 Progress Summary

The goal of Fannie Mae’s three-year Equitable Housing Finance Plan is to advance greater equity in 

America’s housing finance system, its practices, and its outcomes. To do this, Fannie Mae is systematically 

identifying barriers to sustainable mortgage finance and affordable rental housing confronted by people 

who – by design, neglect, or indifference – have historically been excluded or ignored by the housing 

finance system. Where we can knock down those barriers, we will.

In this performance report, Fannie Mae offers its first-year assessment of the progress made against this 

goal. Overall, we measure this Plan’s success by how many barriers we knock down, who benefits when 

they are removed, and whether we do both in a safe and sound manner for the housing finance system 

and the renters and borrowers we serve. 

Black consumers were the focus of year one of our Plan. Using consumer journey mapping to document 

and understand housing barriers for Black renters and borrowers across the housing lifecycle, Fannie Mae 

identified specific actions, many of which it began implementing before 2022 (the year covered by this 

Performance Report). These actions are detailed in this report and in our concurrently published 2023 

Update to the Equitable Housing Finance Plan. Summaries of progress and, where applicable, supporting 

data are included for each of the 17 Plan actions we undertook in 2022.

Fannie Mae believes it took several meaningful steps to achieve greater equity, particularly in how the 

mortgage and housing industry serves Black renters and borrowers. 

Millions of people in the U.S. are credit invisible, with Black and Latino people disproportionately 

represented. The Consumer Financial Protection Bureau estimates that 15% of Black and Latino/Hispanic 

people are credit invisible. Lack of a credit history that can be documented and measured by traditional 

means (such as in a credit report or a person’s credit score) can impact a renter’s ability to access housing 

in higher-opportunity neighborhoods, get a mortgage, and obtain lower-cost credit, such as auto and 

education loans. 

In September 2022, Fannie Mae launched a pilot program to encourage multifamily property owners to 

report resident positive rent payments to credit bureaus. By the end of the year, positive rental payment 

data was being reported by more than 550 multifamily property owners across 100,000 rental units to 

credit bureaus, and these numbers are growing. 

Since the 2021 launch of positive rent payment history in Desktop Underwriter® (DU®), approximately 

3,400 applications have benefited from positive rent payment history – eligible for approval when 

otherwise they might not have been. And of the applications that benefited, about half self-identified as 

minority borrowers, including 41% who identified as Black or Latino/Hispanic. In late 2022, we introduced 

a cash flow assessment capability in DU that will allow potential first-time homebuyers with no credit 

score to qualify for a conventional mortgage. 

In late 2022, Fannie Mae made good on its commitment to launch a special purpose credit program

(SPCP) pilot. Our SPCP pilot began with a diverse group of lenders serving majority Black census tracks in 

six major metropolitan markets: Atlanta, Baltimore, Chicago, Detroit, Memphis, and Philadelphia. The 
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purpose of the pilot is to understand how both lenders and borrowers will respond to and use SPCP 

programs that have various features that address obstacles on the housing journey, such as down 

payment/closing cost assistance and post-purchase financial and housing counseling support. Interest in 

SPCPs in the mortgage lending industry remains high, and we will continue to apply lessons learned from 

our own SPCP, as well as those learned by individual mortgage lender SPCPs. 

Fannie Mae has developed a comprehensive approach to reducing the incidence of racial bias in singlefamily appraisals. Through research, quality control and monitoring, working with the appraisal 

profession, and taking steps to foster diversity in the profession , and by using technology and data to 

rethink how appraisals are conducted and evaluated, Fannie Mae is building and deploying new ways to 

modernize the home appraisal. Our goal is a more useful, efficient, reliable, and fair appraisal for both 

lenders and homeowners. 

These examples, as well as the many other actions reviewed in this Report and detailed in our 2023 

Update to the Equitable Housing Finance Plan, are geared toward helping historically underserved 

borrowers and renters overcome two primary housing obstacles:

1. Reducing up-front rental and homeownership costs and eliminating outdated barriers related to 

insufficient credit to directly drive meaningful and measurable improvements in housing access 

and stability. 

2. Improving the chances for long-term success for underserved borrowers and renters by focusing 

on education and counseling, successfully navigating the mortgage process, and housing 

stability. 

Overall, our specific actions to address these obstacles – which are disproportionally experienced by 

Black, Latino, and other historically underserved consumers – remain in their early stages. We have much 

to learn, and much more to do. As the housing inequities in our nation are deep and long-standing, they 

will take years — if not decades — of sustained attention and effort by housing industry stakeholders and 

Fannie Mae to correct. We believe Fannie Mae in 2022 continued to lay a solid foundation that can be built 

on in the years ahead.

As we make clear in this Performance Report and in our Equitable Housing Finance Plan, advancing 

greater equity in housing is central to Fannie Mae’s long-term strategy and is a critical component of our 

mandate to remain a relevant and vital pillar of the United States housing finance system. Though this 

report covers just one year, this effort and its outcomes are a years-long project for Fannie Mae and the 

many partners we work with in the housing finance system.
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II. Progress and Highlights: The 17 Equitable Housing Finance Plan

Actions in 2022

 

Action: 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. 

(“Action 1” in original plan.)

Progress Summary

Fannie Mae performed extensive research into the landscape of the rental payment reporting ecosystem, 

including vendor analysis, resident/housing provider analysis, and market research. 

Fannie Mae launched the pilot in the third quarter of 2022 with three approved vendors (Esusu Financial, 

Inc., Jetty Credit, and Rent Dynamics). The pilot will conclude in September 2023. By the end of 2022, the 

pilot had more than 550 properties with more than 100,000 units contracted for inclusion, and tracking 

will continue through the pilot conclusion.

Fannie Mae has compiled some early metrics regarding the impact on residents in the pilot, though for 

only about half of the total units in the pilot as of the end of 2022.

• 7,000 residents have established credit scores.

• 65% of residents saw an increase in their credit score.

• Residents with an existing credit score who also saw an improvement experienced a 45-point 

increase in their score.

The capabilities of financial technology and so-called proptech are evolving rapidly, which means the 

solutions we pilot will need to remain agile and adaptable to new approaches. Lastly, raising residents’

awareness and trust levels remains a major opportunity and challenge.
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Multifamily positive rent payment pilot 

Property location and resident by census tract

Minority 

percent of 

census tracts* 

Properties 

reporting 

Units in 

properties 

Units 

reporting 

Residents 

reporting 

Number of 

credit scores 

established 

Number of 

credit scores 

improved 

0% to 10%

 

2 

 

213 

 

138 

 

140 21 

 

19 

10% to 20%

 

18 

 

2,160 

 

1,699 

 

2,266 330 

 

728 

20% to 30%

 

20 

 

3,529 

 

2,748 

 

3,571 573 

 

1,147 

30% and 50%

 

43 

 

10,996 

 

8,634 

 

11,611 1,194 

 

3,742 

50% to 80%

 

67 

 

17,763 

 

13,247 

 

18,851 2,616 

 

6,136 

80% to 100%

 

50 

 

12,822 

 

9,538 

 

14,803 2,429 

 

4,130 

Total 

 

200 

 

47,483 

 

36,004 

 

51,242 7,163 

 

15,902 

* This represents the minority makeup of the census tract where the property is located. For example, the two 

properties in the top row are in census tracts where the minority population comprises less than 10% of the 

entire population of that census tract. This pilot does not collect any demographic information for individual 

tenants.

The above data shows that thus far, roughly two-thirds of the residents with rent reporting through the 

pilot are in census tracts greater than 50% minority population. More than 7,000 residents in the 

properties have established credit scores, 5,000 of which are in properties located in majority-minority 

census tracts. 

Action: 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. (“Action 2” in original plan.)

Progress Summary

Fannie Mae conducted extensive research into available security deposit alternatives, security deposit 

implementation practices by housing providers, and renter/housing provider sentiment. The research 

findings led Fannie Mae to move the pilot launch to 2023 to ensure that any program we pilot has a clear 

impact and benefits underserved renters. 
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Action: 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. 

(“Action 3” in original plan.)

Progress Summary

Fannie Mae exceeded the milestones and objectives for this action in 2022. Fannie Mae launched 

HomeView® in January 2022, which is required for many first-time homebuyers for certain mortgage 

products, including low down payment loans. By May 2022, HomeView Spanish launched. By the end of 

December 2022, more than 178,000 first-time homebuyers completed the course and earned their 

certificate of completion.

In 2022, Fannie Mae conducted national outreach to lenders, housing counseling agencies, and 

prospective first-time homebuyers to increase awareness of this new offering and highlight course 

benefits. We increased targeting to consumers in 12 large, predominantly Black metropolitan statistical 

areas across the country, accelerating campaign engagement. Also in 2022, we began building the 

infrastructure to collect anonymized learner data so that we can monitor relevant engagement trends, 

course traffic, and engagement to better reach underserved communities.

HomeView 

Module Course completions New users

HomeView 175,209 199,138

HomeView Spanish 3,669 4,245

Total 178,878 203,383

Action: 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. 

Action: Execute SPCP Pilot to support the reduction of borrower closing costs for Black 

homebuyers via appraisal products, appraisal reimbursements, and/or title products.

Note: These two actions(“Action 4” and “Action 7” in the original plan) were consolidated in 2022 and for the 

duration of this three-year plan.

Progress Summary

Launching a special purpose credit program (SPCP) pilot in 2022 was a major goal of the Equitable 

Housing Finance Plan. This pilot gives us an opportunity to test concepts designed to address the needs 

of people historically underserved by the housing finance system. Fannie Mae launched the SPCP pilot in 

October 2022. The SPCP seeks to address the barriers of lack of down payment, higher closing costs, and 
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insufficient credit history, which are significant contributors to higher mortgage denial rates for Black 

applicants. Fannie Mae is using this small-scale and targeted SPCP pilot to test our ability to help 

borrowers who can afford a monthly mortgage payment but can’t rely on traditional sources of 

generational wealth or savings to achieve homeownership. 

The SPCP pilot included a limited yet diverse group of lenders serving first-time homebuyers who 

currently reside in majority Black census tracts in Atlanta, Baltimore, Chicago, Detroit, Memphis, and 

Philadelphia. Participating lenders were selected based on their presence in the pilot markets, willingness 

to participate in co-development research, and commitment to affordable lending and closing the Black 

homeownership gap.

Three SPCP loans closed and were delivered to Fannie Mae as of December 31, 2022. At the end of the 

year, lenders reported 26 SPCP loans in their pipelines, most of which were expected to close and be 

delivered in early 2023. In addition, in 2022 we acquired 884 SPCP loans from one of our lenders that 

designed its own SPCP.

While the number of SPCP loans in the pipeline continues to grow, there are a number of reports of local 

market competition for affordable housing from cash investors, as well as competition for eligible 

borrowers from other potential investors, including the Federal Housing Administration. It is too early in 

the pilot process to draw definitive conclusions on delivery rates, loan performance, and other pilot 

metrics. Nevertheless, initial feedback from lenders has been positive. We are optimistic SPCPs will show 

the potential of the loan programs to help historically underserved consumers overcome barriers to 

sustainable homeownership.

Action: 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. (“Action 14” in original plan.)

Progress Summary

Fannie Mae made significant progress designing and planning to operationalize a Mortgage Reserve 

Account Pilot (MRAP) in 2022, with anticipated launch in late 2023. The pilot will work with up to 200 

borrowers to test the effectiveness and utility of mortgage reserve accounts.

Servicers involved in the pilot development emphasized the need to keep the program as simple as 

possible to ensure efficiency and smooth administration for the lender and the borrower. Even so, the 

initial implementation of the pilot will involve significant manual processes for servicers, which presents 

capacity challenges. One potential participant dropped out during the pilot design phase in the fourth 

quarter of 2022, citing capacity constraints. Nevertheless, other servicers in the pipeline were able to 

quickly engage to avoid potentially significant delays. Overall, we continue to receive strong interest from 

lenders for a post-purchase program to support first-time and low- to moderate-income borrowers, with 

some servicers expressing a desire to produce meaningful loan volumes for the pilot. With that in mind, 

we believe that if the pilot is successful, opportunities to scale to additional servicers will be available.
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Action: Test adding ongoing education and counseling support to one or more SPCP pilots to 

strengthen borrower housing stability over time. (“Action 13” in original plan.)

Progress Summary

Fannie Mae in 2022 worked to identify test markets, potential lenders, and other partners for both preand post-loan counseling. Fannie Mae developed a framework of services and a timeframe for the test 

based on review of housing counseling industry best practices, collaboration with housing counseling 

partners, and alignment with HUD’s housing counseling requirements – all of which focused on first-time

homebuyer needs. Fannie Mae selected an experienced housing counseling vendor that will apply best 

practices to increase the borrower take-up rate for services. 

In December 2022, Fannie Mae chose a lender currently participating in Fannie Mae’s special purpose 

credit program (SPCP), to launch the SPCP post-purchase housing counseling “test and learn” project. 

The participating lender and housing counseling vendor are aligned on a borrower referral process, 

marketing materials, and operationalizing the process. 

 

Action: 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. (“Action 5” in original plan.)

Progress Summary

Fannie Mae introduced borrower positive rent payment history (PRPH) in Desktop Underwriter (DU) in the 

third quarter of 2021, and spent much of 2022 encouraging lender adoption and raising consumer 

awareness of the feature. 

First, we focused on lender outreach efforts to drive adoption while ensuring lender and vendor 

operational and system readiness. Our early 2022 efforts emphasized the importance of consumerpermissioned bank statements, which enables DU to identify consistent rent payments. Outreach efforts 

directed lenders to interactive content to learn about the enhancement, access resources to support 

borrower outreach, and view peer success stories. 

Second, in June, we layered in additional marketing outreach to build consumer awareness, encouraging 

consumers to “Make Rent Count.” The media campaign set out to educate prospective homebuyers 

about the power of consistent rent payments when working with participating lenders to qualify for a 

home loan. National outreach was supplemented with increased targeting to consumers in six large, 

predominantly Black metropolitan statistical areas across the country, which accelerated campaign 

engagement. 
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Black and Latino borrowers each represented more than 20% of the applications that benefited from 

PRPH in 2022, far exceeding the benchmark ratio of all loans acquired by Fannie Mae to Black and Latino 

borrowers. (See table below).

Building on this success, we announced new DU enhancements to support borrowers without credit 

scores in the fourth quarter of 2022. These were designed to responsibly expand eligibility and further 

simplify the borrowing process for loans where homebuyers do not have a credit score by assessing a 

borrower's cash flow activity through bank statement data to make more predictive risk assessments.

We proactively engaged with general interest and trade media publications to increase awareness of the 

new offering. These efforts will be further amplified as part of marketing outreach efforts beginning in the 

first quarter of 2023.

Key to this action’s long-term success will be our ability to encourage its adoption by lenders, simplifying 

the process for both lenders and borrowers, and working to build awareness and trust of the action’s key 

elements with consumers.

Positive rent payment history usage in DU in 2022

Approved/eligible borrower casefiles that benefited from the use of PRPH

Group Applications 

Share of PRPH 

applications with 

race/ethnicity 

data

Benchmark: race/ethnicity of all applications 

run through Desktop Underwriter in 2022 

White nonLatino/Hispanic 1,243 50.4% 65.6%

Black 510 20.7% 7.1%

Latino/Hispanic 539 21.8% 15.1%

Asian 218 8.8% 12.7%

Native American 39 1.6% 1.0%

Pacific Islander 10 0.4% 0.4%

Minority 1,224 49.6% 34.4%

Total with 

race/ethnicity data 2,467

Total 2,917 

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

expansion of eligibility for Black consumers. (“Action 6” in original plan.)

Progress Summary

Fannie Mae consulted with 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 to inform this action in 2022. We advised CDIA’s “Metro 2” task

force members (comprised of representatives from the nation’s top credit reporting agencies) on various 

issues related to rental payment reporting and helped convene a summit of task force members and 

other stakeholders to discuss its Rental Empowerment Project. We continue to engage with CDIA on this 

project, but only in an advisory capacity. Because the ultimate outcome of the Rental Empowerment 

Project lies with the Metro 2 task force members, and not Fannie Mae, we discontinued this action as a 

formal part of our Enterprise Housing Equity Plan in 2023. 

Action: 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. (“Action 8” in original plan.)

 

Progress Summary

Fannie Mae continues to identify opportunities to alleviate the disproportionate closing-cost burden for 

Black and Latino borrowers, as well as low- to moderate-income borrowers. We are engaging with 

industry partners and providers to implement solutions aimed at lowering borrower closing costs by 

reducing title and escrow expenses. In 2022, we conducted and published further research on closing 

costs as a driver of total housing costs, announced a closing cost concession for low- and moderateincome purchasers of Fannie Mae real estate owned (REO), updated the Selling Guide to allow lenders the 

option to use an attorney opinion letter in lieu of traditional title insurance, and prepared to pilot options 

to reduce title costs to borrowers in refinance transactions. 

Progress was made in three key areas: 

Attorney Opinion Letters: We implemented Selling Guide update in April 2022 to allow lenders and 

borrowers in limited circumstances the option to use an attorney opinion letter in lieu of traditional title 

insurance. The potential cost savings of attorney opinion letters as an alternative to traditional title 

insurance is heavily influenced, if not dictated, by state laws and regulations. In some states title 

insurance practices are highly regulated, including its pricing, while others are not. Thus, whether an 

attorney opinion letter will be lower cost for a borrower depends on where the property being purchased 

is located. In 2022, 45 borrowers benefited from the attorney opinion letter option, with an average 

savings of $1,034.

1 Of these, 42 borrowers reported race/ethnicity data; three identified as Black 

1 Savings is based on comparison against 2020 state averages for like purpose (purchase, cash-out, rate-term).
The 2022 Equitable Housing Finance Plan Performance Report

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borrowers, six as Latino/Hispanic, and 26 as white non-Latino/Hispanic. We saw our first loan deliveries 

with attorney opinion letters in the fourth quarter of 2022 and expect deliveries to increase in the future.

Title Cost Reduction Pilot: We are currently engaged with multiple providers and lenders on potential 

test-and-learn concepts aimed at reducing the cost of title for borrowers, and plan to finalize pilot 

opportunity parameters by end of the third quarter 2023. 

Closing Cost Concession: We implemented 3% closing cost concession for low- and moderate-income 

purchasers of Fannie Mae REO properties in the fourth quarter of 2021 and increased our marketing of the 

concession. In 2022, 151 buyers of our REO properties were able to take advantage of the concession; 

buyers on average saved $5,910 to help pay for closing costs. In most of these cases, the mortgage used to 

purchase the REO property was not acquired by Fannie Mae, so demographic information for the buyers 

is unavailable. 

Action: Launch Closing Cost Calculator Tool (“Action 9” in original plan.)

 

Progress Summary

Fannie Mae continues to assess the viability of developing a consumer-facing closing cost calculator tool 

using Fannie Mae’s aggregated closing costs data provided by lenders via the Uniform Closing Data (UCD) 

from prior loan acquisitions, with the goal of bringing greater transparency to closing costs and provide 

empirical data that can help consumers more effectively negotiate those costs.

In 2022, we conducted a feasibility assessment that included canvassing the existing landscape of closing 

cost tools and the quality and availability of our data to support such a tool. A prototype design of the 

closing cost tool was developed using co-design sessions and iterative feedback from internal and 

external stakeholders. 

This work included incorporating data and reports of 18 months of UCD data needed for the tool. In the 

course of this effort, we determined that reporting at the county level would be very difficult in a high 

number of the 3,000 counties we hoped to cover, although, after adjusting for county density, the effect 

on the output was minor. We are evaluating different approaches to mitigate this potential obstacle in 

2023.

We conducted qualitative national research of prospective first-time homebuyers to:

• Understand their pain points with the closing process.

• Assess their understanding of the costs involved.

• Determine where in their homebuying journey they would be best positioned to consume

information related to costs and how to shop.

• Gather feedback on the design prototype. Through this research, we confirmed that consumers 

are not familiar with many of the processes or costs associated with originating and closing loans. 
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Additionally, we conducted research with lenders, industry organizations, consumer advocacy groups, 

realtors, and housing counselors to understand their role in helping consumers understand closing costs, 

what they perceive the barriers are, and to gather feedback on the prototype.

The research led to a collaboration with the Fannie Mae marketing team to develop focused messaging 

approaches earlier in the homebuying journey and ensure an inclusive glossary of terms that will be 

incorporated into a revamped consumer-facing website in 2023.

While Fannie Mae continues to pursue the development of a closing cost calculator tool for consumers, 

this action was eliminated from the Plan in 2023 after a determination that it did not align with the 

specific goals of the Plan. When the tool is completed, it will be available on the consumer-facing pages of 

fanniemae.com. 

 

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

households and communities of color. (“Action 10” in original plan.)

Progress Summary

One of a lender’s most important responsibilities in the underwriting process is to ensure sufficient 

collateral for a mortgage. A lender works directly with an appraiser or an appraisal management company

to request an appraisal, which is then reviewed by the lender for both reliability and potential bias. 

Beginning in 2021 and continuing in 2022, Fannie Mae conducted a post-purchase appraisal text scanning 

review to identify references to protected classes and subjective terminology, including, but not limited 

to, the terms found in Selling Guide Section B4-1.1-04, Unacceptable Appraisal Practices, which resulted 

in a number of observed performance improvements, including: 

• Of the appraisers notified of the presence of subjective terminology in their reports in 2021, 78.6% 

had no new text findings in subsequent appraisals.

• The number of appraisers with confirmed findings reduced from 3,193 (based on our 2021 review) 

to 1,557 in 2022. The confirmed findings rate reduced from 0.15% in 2021 to 0.11% in 2022.

• Based upon the results of 2022’s appraisal text scanning review, Fannie Mae sent more than 400 

Appraisal Quality Management (AQM) letters to the appraisers with confirmed findings. In

addition to the AQM appraiser letters, 16 letters were sent for referral to state regulators in

December 2022. 

The Collateral Underwriter® (CU®) undervaluation flag, a new awareness data point that complements the 

CU overvaluation flag, was released on June 24th.The undervaluation flag is an additional tool to help 

lenders identify and investigate potential misvaluation. If an appraisal is flagged as potentially 

undervalued, lenders are notified and can then choose to review the appraisal. The flag is not evidence of 

an undervaluation but is a cue to lenders to review appraisals as potentially inaccurate or incomplete. 

The undervaluation flag is still in its early stages, and we continue to evaluate ways to make it a more 

effective tool for lenders to identify potentially inaccurate appraisals. 
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Lastly, Fannie Mae published Appraising the Appraisal in January 2022, which evaluated appraisal values 

of homes owned by Black and white borrowers refinancing their homes. The analysis of 1.8 million 

appraisals in 2019 and 2020 found that:

• Black borrowers refinancing their home on average received a slightly lower appraisal value 

relative to automated valuation models.

• Homes owned by white borrowers were more frequently overvalued than homes owned by Black 

borrowers.

• Six states, including Georgia, Louisiana, South Carolina, North Carolina, Mississippi, and Alabama, 

accounted for nearly 50% of the overvalued homes of white owners in majority-Black 

neighborhoods.

 

Action: 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. (“Action 11” in original 

plan.)

Progress Summary

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

housing appraisal industry, particularly as it relates to 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. ADI also 

helps connect program participants to industry participants who have opportunities available for 

appraiser trainee positions. 

In 2022, Fannie Mae engaged with over 600 aspiring appraisers working through the National Urban 

League’s affiliate Entrepreneurship Centers, hosting seven workshops and eight higher education 

outreach events (including five historically Black colleges and universities (HBCU)). ADI awarded 330 

scholarships, exceeding our goal by 65%. (Complete demographic data on the awardees is not available.) 

ADI also secured 11 new industry sponsors, exceeding the goal of five new sponsors in 2022. This brings 

the total ADI sponsors to 20. 

 
The 2022 Equitable Housing Finance Plan Performance Report

16

Action: 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. (“Action 12” in original plan.)

Progress Summary

Fannie Mae is undertaking a multi-year effort with 100 industry employer-partners to increase their 

workforce diversity by committing 1,000 diverse Black, Latino/Hispanic, and other diverse participants to 

the Future Housing Leaders (FHL) program by 2025.

Fannie Mae began 2022 with the goal of 20 new industry partners and 150 diverse participants. We

successfully achieved this goal by adding 86 total industry partners and enrolling 1,067 participants,

including both summer interns and full-time hires into the summer program. Sixty percent (60%) of 

enrollees self-identified as racially or ethnically diverse.

2

The 2022 summer program enrollees had access to many professional and foundational development 

opportunities, including Fannie Mae University and industry certifications from the Mortgage Bankers 

Association, Wall Street Prep, and Polygon Research. Participants also took part in a weekly speaker series 

where they heard from leaders and experts in the housing and real estate industries. These leaders and 

experts talked about important topics, pressing issues facing the industry, their own career paths, and the 

keys to career success. 

Providing industry education is a key tool to close the workforce diversity gap.Although FHL's recruiting 

efforts did result in a large number of diverse applicants in 2022, in 2023 FHL will work to strengthen the 

quality of applicants by focused improvements in professional education and a deliberate concentration 

on college sophomores and juniors, which will expand our talent pipeline of qualified diverse students.

In 2022, FHL had 86 employer partners (up 90%, or 40 partners, since 2021). Additionally, 54 of the 86 total 

industry partners were new to the program. 

Demographic data suggest that FHL is both attracting and educating more diverse talent into the 

program. In 2022, 60% of the FHL summer program enrollees identified as a racial or ethnic minority, up 

13% from 2021. 

Black FHL enrollee participation was steady at 15% year-over-year in 2022, while Latino/Hispanic 

enrollees climbed from 14% in 2021 to 20% in 2022. According to recent data highlighting the housing 

industry's racial and ethnic breakdown, the percentage of Black and Latino/Hispanic FHL enrollees is 

higher than that of the housing industry. Based on the report, just 7.5% of the industry’s workforce 

identifies as Black and slightly more than 10% identify as Latino. 

2 Due to Equal Employment Opportunity and privacy laws, FHL conducted an "optional" survey to collect summer enrollee 

demographics. Of the 1,067 summer enrollees, 465 responded to the survey. 281 survey participants identified as ethnically 

diverse (Asian, Black or African American, Latino/Hispanic, American Indian or Alaskan, Native Hawaiian, or two or more races).
The 2022 Equitable Housing Finance Plan Performance Report

17

Action: Expand counseling services for borrowers and renters facing hardship. (“Action 15” in 

original plan.)

Progress Summary

Fannie Mae’s housing counseling services include post-modification counseling, which provides housing 

counseling after a loan modification, the Mortgage Help Network, which provides foreclosure prevention 

services to borrowers in distress, and the Disaster Response NetworkTM (DRN), which provides disaster 

assistance to borrowers and renters. Fannie Mae provided 11,155 housing counseling sessions through 

December 2022, exceeding the goal of 10,000 sessions. The participation level was aided by a radio 

advertising campaign in Memphis, TN, and Jackson, MS, in February 2022. The vast majority of this 

counseling is provided through a network of counseling providers equipped to provide a wide range of 

housing counseling services for people facing hardship, not just those related to natural disasters.

Fannie Mae exceeded its servicer engagement goal, discussing implementation of a process for referring 

homeowners to housing counseling following modification with 18 servicers. Three servicers 

implemented the referral process to refer homeowners for post-modification counseling at the time of 

permanent modification. A number of servicers not participating in post modification counseling prior to 

2022 expressed interest in implementing a referral process, and we will continue to increase the number 

of servicers participating into 2023.

Fannie Mae undertook to rebrand the post-purchase housing counseling programs and simplify its 

consumer messaging and marketing in 2022; however, this work proved more complex and time intensive

3 All participants in the Future Housing Leaders program were asked to participate in an optional demographic survey. Of the 

1,067 participants, 449 responded with demographic information. 

FHL summer program enrollees 

in 2022

Group 

Early career summer program enrollees

(interns and new hires)

Enrollees

Ratio of all enrollees with 

race/ethnicity data

White – non-Latino/Hispanic 168 37.4

Black (African American) 70 15.6

Latino/Hispanic 91 20.3

Asian 63 14.0

Native American 8 1.8

Pacific Islander 1 0.2

Minority 281 62.6

Total with race/ethnicity3 449

Total 1,067
The 2022 Equitable Housing Finance Plan Performance Report

18

than originally anticipated. The “unified” branding strategy will align and simplify counseling touchpoints 

and the user experience, positioning Fannie Mae to make the changes needed to complete this effort in 

2023. The goal is to create an easier path for consumers in crisis to get the help they need. 

Post-purchase housing counseling in 2022

Group Users

Share of all users with 

race/ethnicity data

White - Non-Latino/Hispanic 3,184 38.7%

Black (African American) 2,961 36.0%

Latino/Hispanic 1,724 21.0%

Asian 323 3.9%

Native American 104 1.3%

Hawaiian or Pacific Islander 29 0.4%

Minority 5,043 61.3%

Total with Race/Ethnicity Data 8,227

Total 10,3054

 

 

Action: Provide ongoing oversight of Servicer Forbearance/Loss Mitigation efforts. (“Action 16” in 

original plan.)

Progress Summary

Fannie Mae extensively monitored servicer effectiveness in providing loss mitigation in 2022. This 

included a statistical analysis to determine if there are disparities across certain borrower profiles or

protected classes, including non-white vs. white borrowers, gender, and age groups.

The table below evaluates the proportion of loans that are more than 120 days delinquent and not in a 

loss mitigation workout option, by specific protected classes. Here, a "workout option" is defined as an 

active forbearance, repayment plan, or active trial modification. Each quarter looks at the data at a point 

in time (e.g., end of quarter), and thus, the fourth quarter of 2022 identifies the 120+ delinquent 

population, as of December 31, 2022. As an example, a value of 61.10% for Black borrowers in the fourth 

quarter indicates that, as of December 31, 2022, 61.10% of all Black borrowers who were 120+ days 

delinquent were not in a loss mitigation workout option.

4 Includes post-modification counseling, Mortgage Help Network and Disaster Response Network unique users. Users can have 

more than one session.
The 2022 Equitable Housing Finance Plan Performance Report

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Delinquent borrowers not in workout solutions in 2022

Proportional share of borrowers more than 120 days delinquent 

and not in a loan workout solution

Total 120+ 

delinquent

Share of 

borrowers 

not in 

workout

Share of all borrowers 120+ delinquent not 

in a workout solution by protected class

Asian Black Hawaiian Latino/

Hispanic 

Native 

American

White 

nonLatino/

Hispanic 

Minority 

Q1 149,793 44.8% 37.0% 44.6% 44.3% 41.0% 43.3% 46.8% 42.0%

Q2 117,515 48.9% 40.4% 48.4% 50.6% 44.6% 48.5% 50.9% 45.8%

Q3 97,133 53.2% 45.2% 52.7% 49.9% 48.6% 52.3% 55.1% 50.1%

Q4 88,528 62.3% 55.5% 61.1% 63.7% 57.3% 59.4% 64.2% 59.0%

As a result of this analysis, Fannie Mae found no disproportional outcomes across race/ethnic groups or 

gender in loss mitigation monitoring. Fannie Mae will continue to monitor these metrics but, as a result of 

our findings and lessons learned, this action will no longer be formally included in the Equitable Housing 

Finance Plan.

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

stronger case for change and resources. (“Action 17” in original plan.)

Progress Summary

Fannie Mae is working to provide climate analytics 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, heat) to a given community. 

Fannie Mae selected two communities, Baltimore and Memphis, that we partnered with to capture 

climate analytics data for these communities. Fannie Mae met with city officials for the selected 

communities. Discussions were held in Memphis and Baltimore with officials within the planning and 

sustainability-related city departments. These departments can leverage the information to provide 

direction in zoning, planning, and mitigation projects as well as be used to inform residents of climaterelated risks.
The 2022 Equitable Housing Finance Plan Performance Report

20

Government officials from these communities were interested in how analytics could supplement and 

complement existing analysis completed by the cities. We were able to use insights from their existing 

climate action plans to guide and inform the analysis that we conducted. Additionally, for future 

collaboration, government officials asked Fannie Mae to leverage their internal data where appropriate 

with our analytics to provide a comprehensive view of current and future hazard risk. For Fannie Mae, this 

was the first time we did climate risk analysis at a community level and communicated the findings with 

community officials. This engagement helped us mature our capabilities and understanding of how to 

effectively aggregate data across communities in a way that is digestible and easily interpreted.

Fannie Mae will continue to develop the analysis and program recommendations to direct future actions

to advance equity regarding climate-related issues impacting historically underserved groups. 

III. Data & Research Considerations

In 2022, Fannie Mae created a housing journey map for Latino consumers. This research is designed to 

help Fannie Mae, its partners, and the broader housing industry find ways to make housing more 

equitable through business innovation, policy change, and education. The 22-percentage-point gap 

between Latino household homeownership and white non-Latino/Hispanic homeownership (as of 2021) 

equates to about 4 million households. The journey map identified five main barriers to housing equity 

confronted by Latino households more often than non-Latino households:

• Household financial profiles that create barriers to savings, with higher shares of housing cost 

burdens and higher debt-to-income ratios.

• Smaller savings for post-purchase maintenance, natural disasters, or income disruptions.

• Limited funds for security deposits, down payments/closing costs, lower credit scores, and credit 

invisibility.

• Inadequate affordable supply.

• Higher rates of housing repair needs, aging housing stock, and disproportionate exposure to 

hazardous risks and climate effects.

Fannie Mae also undertook an effort to better understand the universe of potential first-time Black 

homebuyers in the next two decades and how these consumers could overcome barriers to 

homeownership. This research was designed primarily to inform and prioritize our racial equity initiatives, 

and confirmed that our focus on two key areas represents the most effective means by which Fannie Mae 

can directly influence homeownership rate in the years to come. These focus areas are:

1. Addressing the lack of sufficient credit that has traditionally hampered access to mortgage credit 

or rental housing in higher opportunity neighborhoods.

2. Reducing the burden of insufficient funds to cover often-prohibitive up-front costs needed to 

obtain a home, such as down payment, closing costs, or rental security deposits.

In February 2022, Fannie Mae published “Appraising the Appraisal,” a working paper that analyzed 

appraisal values of homes owned by Black and white borrowers refinancing their homes. According to an 

analysis of 1.8 million appraisals in 2019 and 2020:
The 2022 Equitable Housing Finance Plan Performance Report

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• Black borrowers refinancing their home on average received a slightly lower appraisal value 

relative to automated valuation models.

• Homes owned by white borrowers were more frequently overvalued than homes owned by Black 

borrowers.

• Six states, including Georgia, Louisiana, South Carolina, North Carolina, Mississippi, and Alabama, 

accounted for nearly 50% of the overvalued homes of white owners in majority-Black 

neighborhoods.

This research has helped inform Fannie Mae’s efforts to increase the number of accurate and unbiased 

appraisals lenders submit to help remedy the legacy of racial inequities in the housing market. The 

working paper concluded that modernizing the appraisal process, as well as fostering diversity in the 

appraisal workforce, are two ways the housing industry can help minimize the chance of racial bias in 

home valuation.

The lack of affordable housing supply is a key driver of housing inequity in the United States. In October 

2022, Fannie Mae published a Housing Insights research paper, “The U.S. Housing Shortage from a Local 

Perspective,” focused on the contours of housing supply of 75 major metropolitan markets. The paper 

examined the potential of local, customized solutions to address the housing supply crisis at the local 

level.

IV. Outreach Considerations 

Fannie Mae consultations related to its Equitable Housing Finance Plan in 2021 and 2022 are summarized 

below. These consultations were with nonprofit organizations, community groups, consumers, 

governmental agencies, lenders, technology service partners, and other participants in the housing 

finance industry. We will continue to consult relevant stakeholders over the course of the Plan’s threeyear period. 

These consultations were generally focused on racial equity, housing stability, consumer housing journey 

maps, and agreement to support and/or participate in actions or research that are components of the 

Equitable Housing Finance Plan, and/or to advance the Fannie Mae mission. These engagements and 

consultations contributed to our development of the actions in this Plan and often included discussion of 

strategies to more effectively, safely, and soundly serve very low-, low-, and moderate-income borrowers 

who may also be beneficiaries of the actions in our Equitable Housing Finance Plan. 
The 2022 Equitable Housing Finance Plan Performance Report

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Non-Profit Organizations / Community Groups / Coalitions 

 

Center for Responsible Lending Junior Achievement

Oweesta Corp. LISC: Local Initiatives Support Corporation

Florida Housing Coalition Center for Racial Equity Minnesota Homeownership Center — Housing 

Equity

HomeFree-USA Prosperity Now

Housing Partnership Network Asian Real Estate Association of America

Balance Coalition of HUD Approved Intermediaries

Convergence Columbus Inc. Convergence Memphis Inc.

Credit.org Credit Advisors Foundation

Florida Minority Community Reinvestment 

Coalition

Homeownership Council of America

National Community Reinvestment Coalition National Multifamily Housing Council

Housing Partnership Network LISC Memphis

Money Management International National Association of Local Housing Finance 

Agencies

National Foundation for Credit Counseling Homeownership Preservation Foundation

UnidosUS National Fair Housing Alliance

National Association of REALTORS National Association of Home Builders

Manufactured Housing Institute American Enterprise Institute

Leadership Conference on Civil and Human Rights New York Mortgage Coalition

 

Technology Service Providers/FinTech 

 

Esusu Jetty

Rent Dynamics ICE Mortgage Technology

Blend Black Knight

Simple Nexus Optimal Blue

DocuTech Rocket Mortgage

Clarifire Mueller

Accurate Group DXC

Amrock Radian

Meridian Link Sagent

Fiserv Stewart

SharperLending Solidifi

Clear Capital TrueFootage

IndiSoft LLC Equifax Mortgage Solutions

 
The 2022 Equitable Housing Finance Plan Performance Report

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Governmental Agencies 

Colorado Housing and Finance Authority State of New York Mortgage Agency (SONYMA) 

Illinois Housing Development Authority Virginia Housing Development Authority

Massachusetts Housing Finance Agency West Virginia Housing Development Fund

Ohio Housing Finance Agency Office of Comptroller of the Currency (Project 

REACh)

U.S. Department of Housing and Urban 

Development

Additional Relevant Consultations 

Black Homeownership Collaborative National Housing Conference

National Consumer Law Center Urban Institute

National Council of State Housing Agencies Mortgage Bankers Association

Partnership for Equitable and Resilient 

Communities (PERC)

National Association of Real Estate Brokers

National Association of Hispanic Real Estate 

Professionals

Fannie Mae Affordable Housing Advisory Council

National Urban League Appraisal Institute

 

Other Industry Participants 

Consumer Data Industry Association Experian

Credit Karma Fair Isaac

Equifax Finastra 

TransUnion VantageScore

Walker & Dunlop M&T Bank
The 2022 Equitable Housing Finance Plan Performance Report

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V. Equitable Housing through Underwriting 

A. Application acceptance rate in Desktop Underwriter by race/ethnicity, 2018 – 2022 

Desktop Underwriter acceptance rate* 

All Applications 

Race and Ethnicity

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 88.1% 78.5% 84.9% 86.2% 85.8% 84.0% 83.9%

2019 88.5% 77.6% 84.3% 87.6% 83.4% 84.2% 83.9%

2020 92.1% 83.5% 88.7% 91.7% 88.0% 89.8% 88.9%

2021 88.5% 80.0% 85.1% 87.5% 84.7% 85.2% 84.8%

2022 83.9% 70.7% 78.4% 83.8% 77.9% 78.2% 78.1%

 

All Purchase Applications 

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 90.9% 82.3% 88.5% 88.1% 86.4% 87.5% 87.1%

2019 90.7% 80.0% 87.2% 89.0% 85.9% 86.8% 86.3%

2020 91.9% 81.3% 88.9% 91.0% 87.9% 88.8% 88.1%

2021 89.6% 80.7% 87.6% 88.2% 86.5% 86.6% 86.5%

2022 88.7% 78.6% 85.6% 86.7% 85.1% 85.2% 84.6%

 

 
The 2022 Equitable Housing Finance Plan Performance Report

25

 

All cash-out refinance applications

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 85.6% 75.6% 81.5% 83.0% 87.5% 82.3% 80.7%

2019 84.8% 72.2% 78.5% 81.1% 79.3% 80.2% 77.6%

2020 91.0% 81.0% 86.5% 88.9% 85.9% 88.6% 86.2%

2021 87.0% 77.0% 81.7% 85.4% 82.4% 83.8% 81.5%

2022 76.6% 61.7% 67.8% 74.9% 68.4% 69.6% 67.1%

All non-cash-out refinance applications 

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 82.5% 72.1% 78.1% 81.0% 82.7% 76.3% 77.8%

2019 89.0% 79.4% 84.8% 89.1% 85.5% 84.8% 85.4%

2020 93.1% 86.8% 89.7% 92.9% 89.6% 91.2% 90.7%

2021 88.9% 81.9% 85.1% 87.9% 85.1% 85.3% 85.4%

2022 79.1% 69.8% 74.1% 76.1% 74.2% 71.6% 73.5%

*These data points are provided for public transparency and to promote fair lending, but do not by 

themselves prove or disprove unlawful discrimination. Our automated underwriting system, DU, uses 

neutral factors to assess borrower creditworthiness. 
The 2022 Equitable Housing Finance Plan Performance Report

26

B. Single-family loan acquisitions by borrower classification, 2018-2022 

All single-family acquisitions

Race and Ethnicity

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 1,242,134 93,291 205,314 133,086 13,040 7,964 434,905

2019 1,474,853 100,688 249,543 179,379 13,921 9,524 529,950

2020 3,098,725 172,506 481,963 438,478 29,133 19,249 1,089,620

2021 2,878,677 218,166 541,779 451,531 34,615 18,585 1,203,635

2022 1,180,347 125,187 269,036 178,370 17,800 7,924 566,893

 

Share of all single-family acquisitions

Race and Ethnicity

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 74.1% 5.6% 12.2% 7.9% 0.8% 0.5% 25.9%

2019 73.6% 5.0% 12.4% 8.9% 0.7% 0.5% 26.4%

2020 74.0% 4.1% 11.5% 10.5% 0.7% 0.5% 26.0%

2021 70.5% 5.3% 13.3% 11.1% 0.8% 0.5% 29.5%

2022 67.6% 7.2% 15.4% 10.2% 1.0% 0.5% 32.4%

 

All purchase acquisitions 

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 797,076 55,128 127,519 95,709 7,201 4,479 279,082

2019 796,621 57,978 141,995 99,528 7,281 4,604 298,247

2020 958,813 68,457 174,519 120,577 9,994 5,595 360,645

2021 888,191 80,396 200,009 148,918 11,853 5,710 423,139

2022 662,572 66,984 161,415 126,587 10,140 4,340 349,218

 

 
The 2022 Equitable Housing Finance Plan Performance Report

27

 

Share of all purchase acquisitions 

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 74.1% 5.1% 11.8% 8.9% 0.7% 0.4% 25.9%

2019 72.8% 5.3% 13.0% 9.1% 0.7% 0.4% 27.2%

2020 72.7% 5.2% 13.2% 9.1% 0.8% 0.4% 27.3%

2021 67.7% 6.1% 15.3% 11.4% 0.9% 0.4% 32.3%

2022 65.5% 6.6% 16.0% 12.5% 1.0% 0.4% 34.5%

 

 

All cash-out refinance acquisitions

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 273,500 23,042 48,847 21,077 3,730 2,277 94,630

2019 318,887 23,064 54,471 24,816 3,739 2,495 103,752

2020 645,314 32,839 95,210 52,607 6,594 4,339 182,364

2021 746,204 54,401 124,593 69,171 9,313 5,067 249,655

2022 337,563 40,315 68,673 28,559 5,111 2,497 137,882

 

 

Share of all cash-out refinance acquisitions

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 74.3% 6.3% 13.3% 5.7% 1.0% 0.6% 25.7%

2019 75.5% 5.5% 12.9% 5.9% 0.9% 0.6% 24.5%

2020 78.0% 4.0% 11.5% 6.4% 0.8% 0.5% 22.0%

2021 74.9% 5.5% 12.5% 6.9% 0.9% 0.5% 25.1%

2022 71.0% 8.5% 14.4% 6.0% 1.1% 0.5% 29.0%
The 2022 Equitable Housing Finance Plan Performance Report

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All non-cash-out refinance acquisitions

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 171,558 15,121 28,948 16,300 2,109 1,208 61,193

2019 359,345 19,646 53,077 55,035 2,901 2,425 127,951

2020 1,494,598 71,210 212,234 265,294 12,545 9,315 546,611

2021 1,244,282 83,369 217,177 233,442 13,449 7,808 530,841

2022 180,212 17,888 38,948 23,224 2,549 1,087 79,793

 

Share of all non-cash-out refinance acquisitions 

Race and Ethnicity

Create 

Date 

Year 

White 

NonLatino/ 

Hispanic 

Black Latino/ 

Hispanic Asian Native American 

Pacific 

Islander Minority 

2018 73.7% 6.5% 12.4% 7.0% 0.9% 0.5% 26.3%

2019 73.7% 4.0% 10.9% 11.3% 0.6% 0.5% 26.3%

2020 73.2% 3.5% 10.4% 13.0% 0.6% 0.5% 26.8%

2021 70.1% 4.7% 12.2% 13.2% 0.8% 0.4% 29.9%

2022 69.3% 6.9% 15.0% 8.9% 1.0% 0.4% 30.7%

C. Other underwriting changes in 2022 

In December 2022, Fannie Mae announced an update to DU version 11.0 for loan casefiles submitted or 

resubmitted on or after December 10, 2022. This update included enhancements to support loans where 

no applicant has traditional credit. For example, we expanded eligibility guidelines for loan casefiles 

where no applicant has a credit score and included a capability to conduct a cash flow assessment for 

loan casefiles where no applicant has a credit score when the lender obtains a 12-month third-party asset 

verification report. We expect these changes to have a positive impact on minority groups, especially 

those who historically have been less likely to have a credit score.

To support homeownership opportunities for more underserved borrowers, in 2021 we updated the 

credit score used by DU in its eligibility assessment. For most loans with multiple borrowers, DU no longer 

uses the representative credit score to confirm mortgage loans comply with our minimum 620 credit 

score requirement. For these loan casefiles, DU used an average median credit score. This change

benefited 4,522 borrowers in 2022. Of these who reported race/ethnicity, 11% identified as Black, and 

36% overall identified as a member of a minority group.
The 2022 Equitable Housing Finance Plan Performance Report

29

D. Other underwriting innovations 

As noted above, and as referenced in our Equitable Housing Finance Plan, Fannie Mae in 2022 

implemented a change designed to increase access to credit for borrowers without a credit score by 

implementing automated underwriting enhancements that use bank statement data to assess or 

consider a borrower’s monthly cash flow over a 12-month period to potentially enhance their credit risk 

assessment. We believe this will increase access for borrowers without a credit score by implementing 

capabilities to conduct a cash flow assessment in Fannie Mae’s automated underwriting engine, Desktop 

Underwriter (DU), and simplify the underwriting process by providing an automated option for lenders to 

document alternative sources of data used in automated underwriting. In 2022, we implemented both 

enhancements within DU for loans where no borrower has a credit score.

This enhancement followed others implemented in 2021 designed for the same purpose. Specifically, in 

late 2021, Fannie Mae introduced the option to include an applicant’s positive rent payment history in DU. 

In 2022 and in 2023, Fannie Mae is seeking to increase adoption of lender and borrower use of the positive 

rent payment history enhancement. We will continue to expand adoption and usage of the positive rent 

payment history enhancement in DU by further driving adoption of the technical enhancement among 

lenders, vendors, and other key constituents to ensure broad availability for borrowers. In 2022, we 

launched a consumer informational marketing campaign to create awareness of the potential ability for 

consistent, on-time rent payments to help lenders qualify borrowers for a mortgage and encourage 

borrower outreach to lenders.

VI. Summary of Outcomes

A note about data in this Performance Report 

Unless otherwise noted, race and ethnicity categories for individuals (or households) served are based on 

whether they identify as a race other than non-Hispanic white. Individuals can self-identify as more than 

one race and ethnicity, and in those cases the individual race/ethnicity total counts may not sum up to 

100% of those reporting race/ethnicity. For example, for loan data, if there are two borrowers on a 

mortgage, one of whom identifies as Black and one as Asian, the loan would be counted as part of both 

Black and Asian categories. Similarly, if an individual served by a housing counseling service identifies 

with more than one minority race or ethnicity, the individual will be included in each racial/ethnic group. 

For these purposes, an individual who identifies as a member of a minority group(s) as well as nonHispanic white will only be included in the minority group(s). 
The 2022 Equitable Housing Finance Plan Performance Report

30

A. Consumers Served5 

Table includes individual consumers benefiting from or participating in activities within the Equitable 

Housing Finance Plan in 2022.

Equitable Housing Finance Plan activity Consumers/households served

Special purpose credit programs 887 

 Guide-eligible SPCP loan acquisitions6 884

 Fannie Mae SPCP pilot loan acquisitions 3 

Underwriting Innovations (see Table B) 885

 Positive rent payment history7 885 

 Cash flow assessment 0

Education and counseling (see Table D) 192,286

 Pre-purchase counseling8 3,103 

 Post-purchase counseling9 10,305

 HomeView course completions 178,878

Multifamily positive rent payment reporting pilot 51,242 

Closing cost reduction 196

 Attorney opinion letters 45 

 REO closing cost concessions 151

Appraisal Diversity Initiative scholarships 330 

Future Housing Leaders summer program enrollees 1,067 

Total 246,893

5 Individuals may benefit from or participate in more than one activity.

6 Lender-designed special purpose credit program loans acquired by Fannie Mae, as reported by the lender. 7 Includes only PRPH loans acquired by Fannie Mae in 2022.

8 Number of unique users, not total counseling sessions. 9 Number of unique users, not total counseling sessions.
The 2022 Equitable Housing Finance Plan Performance Report

31

Tables organized by demographic makeup of households or individuals benefitting from or participating 

in activities within the Equitable Housing Finance Plan in 2022. 

Consumers/households served

Group

White –

nonLatino/

Hispanic

Black 

(African 

American)

Latino/

Hispanic Asian

Native 

American

Hawaiian 

or Pacific 

Islander

Total 

Minority

Total with 

race/

ethnicity

Total 

without 

race/

ethnicity

Special Purpose 

Credit Programs 

232 357 203 96 12 5 620 852 35 

Guide-eligible 

SPCP loan 

acquisitions 

231 355 203 96 12 5 618 849 35

Fannie Mae 

SPCP pilot loan 

acquisitions

1 2 0 0 0 0 2 3 0

Underwriting 

Innovations (see 

Table B) 

439 151 160 59 11 5 365 804 81 

Positive rent 

payment 

history10

439 151 160 59 11 5 365 804 81

Cash flow

assessment

0 0 0 0 0 0 0 0 0

Education and 

Counseling (see 

Table D) 

4,851 3,294 2,417 511 145 41 6,242 11,093 181,193 

Pre-purchase 

counseling

1,667 333 693 188 41 12 1,199 2,866 237

Post-purchase 

counseling

3,184 2,961 1,724 323 104 29 5,043 8,227 2,078

HomeView 

course 

completions

178,878

Multifamily 

positive rent 

payment reporting 

pilot 

 51,242 

Closing cost 

reduction 

42 5 7 8 0 0 20 62 134 

Attorney 

opinion letters

26 3 6 7 0 0 16 42 3

REO closing 

cost 

concessions

16 2 1 1 0 0 4 20 131

Appraisal Diversity 

Initiative 

scholarships 

 330 

Future Housing 

Leaders summer 

program enrollees 

168 70 91 63 8 1 281 449 618 

10 Includes only loans acquired by Fannie Mae in 2022.
The 2022 Equitable Housing Finance Plan Performance Report

32

Share of consumers/households served11 

Total without race/ 

ethnicity12 Group

White –

nonLatino/

Hispanic

Black 

(African 

American)

Latino/

Hispanic Asian

Native 

American

Hawaiian 

or Pacific 

Islander

Total 

Minority

Special Purpose 

Credit Programs 

27.2% 41.9% 23.8% 11.3% 1.4% 0.6% 72.8% 3.9% 

Guide-eligible 

SPCP loan 

acquisitions 

27.2% 41.8% 23.9% 11.3% 1.4% 0.6% 72.8% 4.0%

Fannie Mae 

SPCP pilot loan 

acquisitions

33.3% 66.7% 0.0% 0.0% 0.0% 0.0% 66.7% 0.0%

Underwriting 

Innovations (see 

Table B) 

54.6% 18.8% 19.9% 7.3% 1.4% 0.6% 45.4% 9.2% 

Positive rent 

payment 

history13

54.6% 18.8% 19.9% 7.3% 1.4% 0.6% 45.4% 9.2%

Cash flow

assessment

0 0 0 0 0 0 0 0

Education and 

Counseling (see 

Table D) 

43.7% 29.7% 21.8% 4.6% 1.3% 0.4% 56.3% 94.2% 

Pre-purchase 

counseling

58.2% 11.6% 24.2% 6.6% 1.4% 0.4% 41.8% 7.6%

Post-purchase 

counseling

38.7% 36.0% 21.0% 3.9% 1.3% 0.4% 61.3% 20.2%

HomeView 

course 

completions

100.0%

Multifamily 

positive rent 

payment reporting 

pilot 

 100.0%

Closing cost 

reduction 

67.7% 8.1% 11.3% 12.9% 0.0% 0.0% 32.3% 68.4% 

Attorney 

opinion letters

61.9% 7.1% 14.3% 16.7% 0.0% 0.0% 38.1% 6.7%

REO closing 

cost 

concessions

80.0% 10.0% 5.0% 5.0% 0.0% 0.0% 20.0% 86.8%

Appraisal Diversity 

Initiative 

scholarships 

 100.0%

Future Housing 

Leaders summer 

program enrollees 

37.4% 15.6% 20.3% 14.0% 1.8% 0.2% 62.6% 57.9% 

11. Ratio to consumers with race/ethnicity data. 12 Ratio to all individuals served by this action or group of actions, including both those with and without race/ethnic data. 13 Includes only loans acquired by Fannie Mae in 2022.
The 2022 Equitable Housing Finance Plan Performance Report

33

B. Underwriting Innovations 

Includes approved/eligible applications that benefited from the positive rent payment history (PRPH) 

enhancement in Desktop Underwriter in 2022, and loans acquired by Fannie Mae in 2022. (Note: Fannie 

Mae acquired no loans that utilized DU enhancements for cash flow assessment or for borrowers without 

a credit score in 2022).

Group Approved/eligible 

applications

Share of 

PRPH 

applications

PRPH 

loans 

acquired 

in 2022

Share of 

PRPH 

loans 

acquired

White - Non-Latino/Hispanic 1,243 50.4% 439 54.6%

Black (African American) 510 20.7% 151 18.8%

Latino/Hispanic 539 21.8% 160 19.9%

Asian 218 8.8% 59 7.3%

Native American 39 1.6% 11 1.4%

Hawaiian or Pacific Islander 10 0.4% 5 0.6%

Minority 1,224 49.6% 365 45.4%

Total with race/ethnicity data 2,467 804

Total 2,917 885

C. Homeowners Served - Foreclosure Alternatives 

Table includes foreclosure alternatives only for loans acquired by Fannie Mae in 2022 that pertain to an

Equitable Housing Finance Plan action. (Note: Fannie Mae’s Plan contains no foreclosure alternativerelated actions.) 

Foreclosure alternatives in 2022

Group Loans Share of total

White - Non-Latino/Hispanic 1 33.3%

Black (African American) 2 66.7%

Latino/Hispanic 0 0.0%

Asian 0 0.0%

Native American 0 0.0%

Hawaiian or Pacific Islander 0 0.0%

Minority 2 66.7%

Total with Race/Ethnicity Data 3

Total 3
The 2022 Equitable Housing Finance Plan Performance Report

34

D. Consumers Served – Education & Counseling Activities 

Pre-purchase counseling (as defined by loans with Special Feature Code 184, used to apply the applicable 

loan-level price adjustment credit to the lender for HomeReady® loans where the borrower completes 

housing counseling) for loans acquired in 2022. For HomeView sessions, no demographic data is 

available.

Pre-purchase counseling 

For the year ended December 31, 2022

Group User Share of all users

White - Non-Latino/Hispanic 1,667 58.2%

Black (African American) 333 11.6%

Latino/Hispanic 693 24.2%

Asian 188 6.6%

Native American 41 1.4%

Hawaiian or Pacific Islander 12 0.4%

Minority 1,199 41.8%

Total with Race/Ethnicity Data 2,866

Total 3,103

Post-purchase counseling 

For the year ended December 31, 2022

Group Users Share of all users

White - Non-Latino/Hispanic 3,184 38.7%

Black (African American) 2,961 36.0%

Latino/Hispanic 1,724 21.0%

Asian 323 3.9%

Native American 104 1.3%

Hawaiian or Pacific Islander 29 0.4%

Minority 5,043 61.3%

Total with Race/Ethnicity Data 8,227

Total 10,305

HomeView14

Module Course Completions New Users

HomeView 175,209 199,138

HomeView Spanish 3,669 4,245

Total 178,878 203,383

14 HomeView users do not report race/ethnicity.