Laurie Goodman and Jun Zhu explain the complicated but critical controversy over the Federal Housing Finance Agency's (FHFA) recent policy for sunsets on loan put-backs. At stake: the ongoing constraints on lending in the United States.
Laurie Goodman and Jun Zhu take issue with a report released in September by the Federal Housing Finance Agency’s Inspector General (OIG). The report was critical of a policy enacted in January, 2013, under Acting Director Ed DeMarco, to offer a "sunset" from loan put-backs for lenders with loans in certain situations.
The sunset policy was put in place to help "expand the credit box," according to Goodman and Zhu. But "[the] OIG found the January 2013 implementation of a set of sunset provisions to be flawed." Namely, "that the risks of the 36-month sunset were not sufficiently analyzed, and that the GSEs [Government Sponsored Enterprise, i.e., Fannie Mae and Freddie Mac] adopted the revised standards before putting the needed risk assessment tools in place."
Goodman and Zhu, however, argue that the OIG's report was incomplete in its analysis: "Our analysis of recent, more tailored data, however, reveals that the OIG’s analysis of this sensitive issue is incomplete and overstates the risks of the plan."
FULL STORY: Incomplete OIG report overstates the risks of FHFA sunset plan
‘Renters Bill of Rights’ One Step Closer to Reality
The Biden administration could strengthen tenant protections on a national scale by leveraging federally backed mortgages to mandate rent stabilization and bar discrimination in rental housing.
Freddie Mac, Fannie Mae to Back $1 Million Mortgages
Expensive housing markets are about to cross a symbolic threshold.
Racial Bias Still Rampant in the Mortgage Industry
New research that controls for financial factors the industry said would explain disparities shows that race still plays a major role in loan decisions.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?
As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?
The Five Most-Changed American Cities
A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.
Housing, Supportive Service Providers Brace for Federal Cuts
Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.
Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement
An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.
‘Quality Work, Fast’: NC Gears up for Homebuilding After Helene, Trying to Avoid Past Pitfalls
The state will field bids to demolish, repair and rebuild homes in the mountains. After struggles in eastern NC, officials aim to chart a different course.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Central Transportation Planning Staff/Boston Region MPO
Heyer Gruel & Associates PA
Institute for Housing and Urban Development Studies (IHS)
City of Grandview
Harvard GSD Executive Education
Regional Transportation Commission of Southern Nevada
Toledo-Lucas County Plan Commissions