FHFA may add fair lending, language preference to regs

The Federal Housing Finance Agency has proposed a rule that could make it tougher to roll back some recently implemented measures aimed at making access to homeownership more equitable.

Specifically, the new rule going out for comment would codify in regulation fair lending requirements and related plans that government-sponsored enterprises backing a large number of U.S. mortgages follow. 

It also would do the same for a preferred language form that recently became mandatory.

The latter requires lenders selling mortgages to GSEs Fannie Mae and Freddie Mac to ask about borrowers' preferred method of communication and document any counseling consumers received about their home purchase. It went into effect last month.

If the FHFA's proposal moves forward, it could reinforce measures undertaken by the Biden administration that the Trump White House had sought to roll back. 

Current leadership has been systematically working to undo Trump administration changes that weakened fair lending rules. Last month, for example, the Department of Housing and Urban Development put in motion a measure that will reverse a Trump rule that made it tougher to allege lending discrimination.

"Challenges and barriers continue to limit sustainable housing opportunities for minority, low-income, and senior borrowers, as well as families living in rural areas and on tribal land," said Director Sandra Thompson.

"The proposed rule will help FHFA ensure that our regulated entities operate in a safe and sound manner as they comply with fair housing laws and serve the public interest," she added.

Commenters can weigh in on the plan for 60 days following its publication in the Federal Register.