Freddie Mac announced the company’s first Equitable Housing Finance Plan, which the GSE says is designed to promote equity and increase sustainable homeownership and rental opportunities for traditionally underserved Black and Latino communities.
The plan focuses on five major areas:
- Addressing the homeownership gap through the Special Purpose Credit Program (SPCP) framework to purchase loans originated through new or existing lender SPCPs.
- Strengthening investment within formerly redlined areas by increasing support for underserved renters and multifamily borrowers and expanding financing for affordable housing developers, among other areas.
- Financing the creation and preservation of affordable housing.
- Increasing opportunities for renters by expanding on the company’s Multifamily tenant credit-building initiative with new tools aimed at encouraging financial empowerment and wealth-building.
- Helping to eliminate disparities among Black and Latino communities by introducing initiatives aimed at improving access to capital for emerging diverse multifamily developers.
The three year plan is already in progress, according to CEO Michael DeVito.