Federal Regulation of Government Sponsored Enterprises

Habitat for Humanity International supports efforts to strengthen federal regulation of the government-sponsored housing enterprises (GSEs)—Fannie Mae, Freddie Mac, and the Federal Home Loan Bank. Since their creation, the GSEs have played a critical role in expanding housing opportunity, and with the appropriate balance of regulation and operational flexibility, even more Americans will benefit from their activities and investments.

The GSEs have made a significant contribution to the U.S. housing market, including developing innovative products and underwriting strategies that have expanded affordable homeownership and rental opportunities for lower income and other underserved populations; stabilizing the flow of mortgage credit to American consumers during economic downturns; and developing a national mortgage market that has curtailed regional differences in interest rates. Regulatory reform must build on these accomplishments and lay the groundwork for future GSE successes.

In order to strike the appropriate balance between oversight and operational flexibility, GSE regulatory reform should seek to accomplish the following goals: