Advocate's Guide to Housing and Community Development Policy Homeownership Homeownership is the idealized housing state in the United States, and is what most people aspire to achieve. Further, the number of black and Latino home owners is growing, although the rate continues to lag behind that of white home owners. Homeownership is widely regarded as key to economic stability and the acquisition of financial assets. The Financial System and the Federal Housing Policy Federal housing policy promotes homeownership and is largely responsible for its rapid expansion over the last 50 years.
Most people buy a house with a mortgage loan.
A third GSE, the Federal Home Loan Bank System, is a system of wholesale banks. This process ensures liquidity, or a continual supply of money to lend to homeowners. Ginnie Mae, a federal corporation located within HUD, guarantees mortgage backed securities sold on the secondary market. The Department of Agriculture and the Veterans Administration also assist homeowners through direct loans or mortgage insurance programs. The Community Reinvestment Act provides the statutory framework for community groups to work with banks to increase mortgage lending in underserved areas.