SFA Submits Letter to FHFA on Freddie Mac Proposal to Purchase Closed-End Second Mortgages
article by Structured Finance Association
On May 22, 2024 the Structured Finance Association (SFA) submitted a letter to the Federal Housing Finance Agency in opposition to Freddie Mac’s proposal to purchase closed-end second mortgages. The SFA’s response argues that consumers are well-served by private capital in the $500 billion home equity lending market and that there is no reason for taxpayer-supported government-sponsored enterprises (GSEs) to enter. The letter also outlines how widescale equity extraction facilitated by GSEs poses risks to taxpayers, could exacerbate current housing market challenges and add inflationary pressure.