US housing market regulatory and lending shifts

The Federal Housing Finance Agency (FHFA) has initiated several changes to the U.S. housing market. Under Director Bill Pulte, Fannie Mae and Freddie Mac are increasing mortgage-backed securities (MBS) purchases toward a $200 billion goal to offset Federal Reserve portfolio reductions. This move has been linked to a decline in mortgage rates. Additionally, the FHFA directed Fannie Mae to align its mortgage insurance cancellation rules with Freddie Mac, allowing servicers to notify homeowners about potential private mortgage insurance (PMI) cancellations based on increased equity.

In response to evolving standards, the Community Associations Institute is lobbying Congress for a one-year delay on new condominium lending requirements from Fannie Mae and Freddie Mac. Advocates argue that higher reserve-funding expectations and the removal of streamlined reviews could raise costs. Meanwhile, the Federal Housing Administration (FHA) is seeking public comment on proposed updates to its Minimum Property Requirements for single-family homes, aiming to modernize standards and align them with Fannie Mae and Freddie Mac to reduce burdens on low-to-moderate-income buyers.