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The Enterprises’ Multifamily Support in Areas of Concentrated Poverty
Financing of multifamily properties by Fannie Mae and Freddie Mac in areas of concentrated poverty, as well as their financing of mixed-income housing in these areas, reached a five-year high in 2022. However, absolute dollar financing of mixed-income housing remains small compared to all other...
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FHFA’s Fall 2023 Econ Summit on Climate Risk
FHFA hosted its Fall 2023 Econ Summit on October 3, 2023, with a focus on climate risk. Following opening remarks by Director Sandra L. Thompson, research panels addressed three climate change topics especially pertinent to housing finance: climate change and insurance; land use regulations...
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Underappraisal Disparities and Time Adjustments
Several studies document racial and ethnic disparities in underappraisal. Racial disparities in appraisers’ use of time adjustments for local house price growth are one important factor driving these results. Introduction Mortgage lenders typically have safeguards against appraisals above market...
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FHFA Publishes 2023Q3 UAD Aggregate Statistics
The number of U.S. home appraisals declined between the third quarters of 2022 and 2023 as well as between the second and third quarters of 2023. For purchase appraisals, the median appraised value remained unchanged from the third quarter of 2022 to the third quarter of 2023 while decreasing...
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Enterprises’ Financing for Affordable Units Increases
Affordable units (those having rents for households in the very low-income range) accounted for over 20 percent of the Enterprises’ financings in 2022, the highest level in over a decade. Introduction On September 25, 2023, the Federal Housing Finance Agency (FHFA) released the annual Public Use...
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Geographic Disaggregation of House Price Stress Paths
Financial managers calculate the risk of holding single-family mortgages to understand what expected losses (or gains) they may anticipate in the future, and, when applicable, how much capital they should potentially set aside to cover future losses. Usually, this is done by running a pool of loans...
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Recapping FHFA’s Inaugural TechSprint
Recapping FHFA’s Inaugural TechSprint From Monday, July 10 to Thursday, July 13, 2023, FHFA held its first-ever TechSprint. Named “Velocity,” the TechSprint brought together experts and practitioners from the technology and mortgage finance sectors to participate in a team-based, problem-solving...
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FHFA Publishes 2023Q2 UAD Aggregate Statistics
While the number of U.S. home appraisals and median appraised values declined year-over-year between the second quarters of 2022 and 2023, both indicators increased between the first and second quarters of 2023. This blog summarizes key findings from the Federal Housing Finance Agency’s (FHFA)...
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Homeowners’ Equity Remains High
Around 97 percent of outstanding first-lien, closed-end residential mortgages in the United States, and 98.5 percent of those the Enterprises acquired, have home equity above 10 percent. Only 0.2 percent of these mortgages have negative equity, the lowest level in the past 10 years....