“Clarifying these policies regarding the eligibility of group homes for the secondary mortgage market is an important step to fulfilling the Fair Housing Act’s promise of providing individuals with disabilities equal access to housing opportunities,” HUD Secretary Marcia Fudge said in a release. “We appreciate our colleagues at FHFA who share our goal of advancing fair housing and collaborated closely with us and Freddie Mac in helping to clarify these policies.”
This assurance that Freddie Mac will purchase mortgages secured by group homes, where the property is owned by an individual, should encourage lenders in extending credit for such mortgages, thus providing more community-based living opportunities for persons with disabilities, the agencies said.
These clarifications were included in Freddie Mac’s Sept. 1 update to Freddie Mac’s Seller/Servicer Guide.
The clarifications follow a HUD investigation of a mortgage lender who had refused to lend to a homeowner that was renting their property to a company operating a group home. The lender’s refusal was based on the incorrect belief Freddie Mac would not agree to buy the mortgage. After HUD reported this misunderstanding to Freddie Mac and FHFA, Freddie Mac worked with both agencies and ultimately agreed to revise its policies and make this announcement to clarify Freddie Mac has always been willing to buy these mortgages secured by a group home.
“Group homes provide opportunities for persons with disabilities to live in the community among neighbors and access important opportunities for independent living,” acting FHFA Director Sandra Thompson said. “We are proud to stand with HUD to ensure that all people are afforded fair access to housing, recognizing that diverse experiences contribute to communities that thrive.”
HUD and FHFA recently signed a Memorandum of Understanding to cooperate on fair housing and fair lending matters and strengthen oversight of Fannie Mae and Freddie Mac and the primary mortgage market.
Group homes must still meet other eligibility requirements applicable to other transactions to be eligible for purchase by Freddie Mac.
Cover Story: