Fannie Mae's 'Expanded Housing Choice' Initiative Extends to All Eligible Jurisdictions Nationwide, Includes New Enhancements

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Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) has announced enhancements to its Expanded Housing Choice (EHC) initiative, extending it to all eligible jurisdictions nationwide without source of income protections. The program, which supports property owners and renters in markets lacking such protections, is now available for new loans to multifamily property owners accepting HUD Housing Choice Vouchers (HCVs).

Key points:

EHC aims to expand housing opportunities for HCV holders
Borrowers can benefit from lower pricing, flexible loan terms, and other advantages
The initiative is extended through April 2026
Properties must have at least 40% of units affordable at or below HUD Fair Market Rents
Enhancements include increased eligibility threshold and streamlined data collection

Positive

Extension of Expanded Housing Choice initiative to all eligible jurisdictions nationwide
Potential for increased renter base for participating property owners
Lower pricing and flexible loan terms for borrowers who commit to accept HCVs
Lower turnover and vacancy rates for participating properties
Steady stream of competitive rent payments backed by HUD

Negative

None.

News Market Reaction – FNMA

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In the trading session that priced this news, FNMA declined 4.41%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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10/15/2024 - 09:00 AM

Previously Available in North Carolina and Texas, EHC Program Supports Property Owners and Renters in All Markets that Lack Source of Income Protections

WASHINGTON, Oct. 15, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced enhancements to its Expanded Housing Choice (EHC) initiative, including that it is now available in all jurisdictions without source of income protections, for new loans to multifamily property owners who accept U.S. Department of Housing and Urban Development (HUD) Housing Choice Vouchers (HCVs).

The Housing Choice Voucher federal program helps very-low-income families, senior citizens, and people with disabilities afford stable and quality housing in the private market. Fannie Mae's Expanded Housing Choice, which the company launched in April 2022 and has extended through April 2026, is an innovative pilot initiative created to expand housing opportunities for HCV holders by incentivizing multifamily borrowers to accept vouchers as a valid source of income. Currently in the United States, approximately 30% of voucher holders are unable to find housing that accepts their vouchers.

In addition to gaining a larger renter base, borrowers and property managers who leverage EHC and commit to accept HCVs can benefit from lower pricing, flexible loan terms, certainty of execution, lower turnover and vacancy rates, a steady stream of competitive rent payments backed by HUD, and the chance to support a more equitable housing market.

"Finding and creating opportunities that promote a more affordable and fair housing market while maintaining safety and soundness is at the core of our mission, so we are happy to extend the reach of our Expanded Housing Choice initiative to all eligible jurisdictions and properties. We also thank our Delegated Underwriting and Servicing (DUS^®) lenders for partnering with us to bring this initiative to life for those who will benefit from it," said Michele Evans, Executive Vice President and Head of Multifamily, Fannie Mae. "Many Housing Choice Voucher holders are from historically underserved communities, and bringing a program to the greater market that enables increased access to sustainable housing for renters while producing benefits for property owners is a prime example of Fannie Mae's innovation at work."

Previously limited to eligible properties in North Carolina and Texas, EHC is now available to borrowers in all U.S. jurisdictions without Source of Income protections provided their property is not already legally required to accept HCVs and that at least 40% of units are affordable at or below HUD Fair Market Rents or Small Area Fair Market Rents. The EHC initiative also has been enhanced to address customer and stakeholder feedback, including: an increased eligibility threshold, which aims to stimulate a more sustainable program; a more streamlined data collection process; and more transparency around inclusive renter screening requirements.

For more information on Fannie Mae's Expanded Housing Choice initiative, including background on the Housing Choice Voucher program, lender and borrower best practices, frequently asked questions, and more resources, please visit FannieMae.com.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
fanniemae.com | X (formerly Twitter) | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif

Fannie Mae Resource Center
1-800-2FANNIE (800-232-6643)

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's Expanded Housing Choice (EHC) initiative?

Fannie Mae's Expanded Housing Choice (EHC) is an initiative to expand housing opportunities for Housing Choice Voucher holders by incentivizing multifamily borrowers to accept vouchers as a valid source of income.

When did Fannie Mae (FNMA) launch the Expanded Housing Choice initiative?

Fannie Mae launched the Expanded Housing Choice initiative in April 2022.

Until when has Fannie Mae extended the Expanded Housing Choice program?

Fannie Mae has extended the Expanded Housing Choice program through April 2026.

What are the eligibility requirements for properties under Fannie Mae's EHC initiative?

Properties must have at least 40% of units affordable at or below HUD Fair Market Rents or Small Area Fair Market Rents, and not be already legally required to accept Housing Choice Vouchers.

What benefits do borrowers get from participating in Fannie Mae's EHC program?

Borrowers can benefit from lower pricing, flexible loan terms, certainty of execution, lower turnover and vacancy rates, and a steady stream of competitive rent payments backed by HUD.