Sandra L. Thompson confirmed as FHFA director
First Black woman to lead agency
After serving in an interim role for almost a year, Sandra L. Thompson has won Senate confirmation to serve as Federal Housing Finance Agency [FHFA] director. The agency regulates most of the U.S. mortgage market.
“Last year, the gap between Black (44.6%) and White (74.2%) homeownership was the largest spread since 1890. There is an urgent need for new policies and practices to address the legacy of housing discrimination,” said Lydia People, National Association of Real Estate Brokers (NAREB) president.
The Senate confirmed her by a 49 to 46 vote. She was appointed by President Biden as acting director in June 2021, after leading FHFA’s housing mission and goals division. She previously was the supervision chief at the Federal Deposit Insurance Corporation.
“I appreciate the support I received, and I look forward to continuing to work with Congress and other stakeholders as I fulfill my new role,” Thompson said in a statement
Congresswoman Maxine Waters (D-CA), House Committee on Financial Services chair, congratulated Thompson, who will be the first Black woman to serve as FHFA Director.
“Our nation continues to face a worsening housing crisis that falls disproportionately on communities of color and threatens to lock future generations out of stable, equitable homeownership,” Waters said in a statement.
“Now more than ever, it is imperative that we have an FHFA Director who will work to find equitable and innovative solutions to expand access to homeownership and affordable housing for every community and prospective homebuyer.
“What’s more, Thompson’s experience working through several crises, including during the current pandemic, makes her well positioned to continue tackling our nation’s housing crisis head on.”
In an April interview with DS News, a publication that covers the housing and mortgage professional industries, Thompson said her agency’s request for Fannie Mae, Fannie Mac, and the Federal Home Loan Banks [which she calls Enterprises] to submit Equitable Housing Finance plans.
“The purpose of these plans is to identify and address barriers to fair and sustainable housing opportunities. We asked the Enterprises to focus on providing liquidity in additional areas that are hard to serve,” she said.
“We want to focus the Enterprises on providing liquidity in areas that are harder to serve, especially targeting low- to moderate-income communities, underserved communities, and particularly communities of color. Ensuring a sustainable and equitable housing finance system is also important.
Thompson added that “It is important to note that equity is different from equality. When you are equal, everybody gets the same thing. But when you have equity, solutions can be tailored for the particular problem that needs to be addressed. Equitable housing is important to me; sustainability is important to me.”
In August 2021, the FHFA entered into a fair lending data sharing agreement with the Department of Housing and Urban Development and made on-time rental payment history a part of Fannie Mae’s underwriting process. The FHFA also set new affordability goals for Fannie Mae and Freddie Mac, establishing target loan purchases in minority and low-income Census tracts.
During her tenure as interim director, FHFA raised fees on high-balance and loans for second homes. Affordable housing advocates want more revenue to be used from high-balance and investor loans to subsidize more affordable
Freddie Mac CEO Michael DeVito said in a statement, “We applaud Thompson’s commitment to our mission and look forward to continuing our very collaborative working relationship.”
The National Association of Real Estate Brokers, a national organization that represents African American real estate professionals, also celebrated Thompson’s Senate confirmation.
“Sandra Thompson takes over at a critical time for African American families and individuals across the country who want to become homeowners,” Lydia People, National Association of Real Estate Brokers (NAREB) president said.
“Black homeownership has plummeted nearly 20% since 2008. Last year, the gap between Black (44.6%)
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