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Greetings,

I am Jake Thompson, a passionate housing advocate and community organizer based in Kansas City, Missouri. I am writing to voice my strong opposition to Freddie Mac's proposal to introduce closed-end second lien mortgage loans into the market.

As someone deeply committed to fostering equitable housing opportunities, I believe this proposal poses significant risks and challenges:

The introduction of closed-end second mortgages could exacerbate wealth inequality by incentivizing homeowners to extract equity from their homes rather than build long-term wealth. In cities like Kansas City, where housing affordability is already a pressing issue, this proposal could further widen the gap between homeowners and renters, perpetuating cycles of poverty and disenfranchisement.

Closed-end second mortgages have the potential to undermine community stability by increasing the risk of foreclosure and displacement, particularly in low-income and minority neighborhoods. These communities are often disproportionately targeted by predatory lending practices, and the introduction of this product could further entrench cycles of financial insecurity and housing instability.

The proliferation of closed-end second mortgages could divert resources and attention away from initiatives aimed at increasing affordable housing stock and addressing homelessness. Instead of investing in solutions that prioritize housing stability and affordability for all residents, financial institutions may prioritize profit-driven products that cater to a select few.

In conclusion, the introduction of closed-end second mortgages poses serious risks to community stability, wealth equality, and affordable housing initiatives. I urge the Federal Housing Finance Agency to reject this proposal and instead focus on policies and programs that promote responsible homeownership, equitable access to housing, and sustainable communities.

Sincerely,

Jake Thompson