Fannie & Freddie Urged to Ease Up on Credit Qualifications

Paul Stewart, SAMCAR Government Affairs Director | January 20, 2015

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to explore "alternate" credit-score models and the credit history of the loans they back. The move is part of several efforts by FHFA to ease tight mortgage standards and help more potential buyers qualify for financing. In a statement by FHFA Director Mel Watt, he said expanding credit access is an important goal in 2015 but it needs to be balanced against the risk of loan losses.

Qualifying for financing has been a big hurdle that has sidelined many potential buyers from the housing market in recent years as REALTORS® continue to cite their clients' financing struggles in qualifying for a mortgage as one of the top causes of derailing transactions, according to the National Association of REALTORS®.

Part of the plan to expand credit availability includes offering loans through Fannie and Freddie that require down payments as low as 3 percent. FHFA has also ordered Fannie and Freddie to begin paying into an affordable housing fund, allocating millions of dollars a year to allow states and other government agencies to build low-income rental housing or rehab existing housing in an effort to increase affordability.

TAGGED: Credit Qualifications, Fannie Mae, Freddie Mac

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Redwood City Council Unanimously Opposes Rent Control Ballot Measure

In a decisive 6-0 vote, the Redwood City Council has officially opposed the Redwood City Fair and Affordable Housing Ordinance, which will appear on the November 3, 2026 ballot. The Council's decision follows an independent supplemental economic impact analysis that concluded the measure extends far beyond traditional rent control and could have significant unintended consequences for tenants, housing providers, affordable housing, and the City's financial stability. SAMCAR applauds the six Redwood City Councilmembers for carefully reviewing the analysis and taking a position based on the long-term interests of the entire community. We encourage Realtors, property owners, homeowners, and renters to learn more about the measure before casting their vote this November.