Government Sponsored Enterprises (GSEs)

Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System have affirmative obligations to improve housing opportunities for low- and moderate-income people. As government-sponsored entities, their support of homeownership and affordable rental housing helps government fulfill its role in expanding inclusivity and building assets.

Recommendations:

• Establish a community economic development fund within the FHLB System, analogous to the Affordable Housing Program (AHP) by modifying the FHLBs' RefCorp payment obligation.

• Give the GSEs extra credit toward meeting their affordable housing responsibilities for purchasing mortgages on properties that are energy efficient or otherwise environmentally responsible.

Read more about GSE reform at www.nextamericanopportunity.org/ha/gse/.