Tuesday, October 20, 2009

Administration Announces New Initiative to Bolster HFAs, Help Distressed Borrowers, and More

Yesterday, as part of the Making Home Affordable program, the Obama Administration announced a new initiative to help strengthen state Housing Finance Agencies (HFAs) and their efforts to stimulate first-time home buying, help distressed homeowners and provide affordable rental homes for low- and middle-income borrowers over the long term.

This initiative, developed by the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development, in partnership with the Federal Housing Finance Agency, Fannie Mae and Freddie Mac, was created to maintain the viability of HFA lending programs and infrastructure. Specifically, this plan has two parts: a new bond purchase program to support new lending by HFAs, and a temporary credit and liquidity program to improve the access of HFAs to liquidity for outstanding HFA bonds.

According to an article in today’s Washington Post, the effort also reflects the priorities of the Administration and its increasing preference for moderate-size initiatives over another large stimulus program.

To learn more about this initiative, please view these documents and resources from NHC Member Partner the National Council of State Housing Agencies, which includes their statement written in support of these new measures.

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