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Fannie & Freddie Scrap 1st-Time Buyer Programs [1]

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Date: 2025-04-02

FHFA scraps key housing programs

T he FHFA also eliminated guidance requiring tenant protections in multifamily loan agreements, such as minimum standards for rental grace periods and lease termination notices. In addition, Pulte rescinded an advisory bulletin that called for the GSEs to manage climate-related risks and a directive related to ensuring necessary property repairs.

One of the biggest changes was the order to end SPCPs, programs designed to expand mortgage access to first-time and lower-income homebuyers.

Pulte posted photos of printed memos on to announce the changes on X. Not the normal channels.

Pulte on X

If the NAMB is concerned then you know it is bad. They are not a group of Liberals.

Fannie and Freddie Scrap First-Time Buyer Programs—A Step Backward for Housing Equity

NAMB expressed concern about the FHFA’s decision to eliminate SPCPs, which have helped underserved borrowers gain access to housing.

But the rollback of SPCPs was met with concern from the National Association of Mortgage Brokers (NAMB), which called the programs “critical tools” for expanding access to affordable homeownership.

If the NAMB is concerned then you know it is bad. They are not a group of Liberals. Mortgage lenders are advised to answer no if they are asked if there are any first time buyers programs. Kamala Harris campaigned on giving first time home buyers a $25,000 tax credit. Elections matter. Trump voters FAFO again.

In a sweeping policy shift, FHFA Director Bill Pulte has ordered Fannie Mae and Freddie Mac to roll back key housing initiatives aimed at helping first-time and lower-income buyers—effectively shutting the door on thousands of aspiring homeowners.

Among the most devastating changes is the elimination of Special Purpose Credit Programs (SPCPs), which provided critical mortgage access and financial assistance to underserved communities. These programs had helped thousands of households secure homeownership by offering down payment assistance and favorable loan terms—opportunities now wiped away with the stroke of a pen.

But the damage doesn’t stop there. The FHFA has also stripped away tenant protections in multifamily loan agreements, eliminating requirements for rental grace periods and lease termination notices. Additionally, the agency has rescinded an advisory bulletin urging government-sponsored enterprises (GSEs) to manage climate-related risks and enforce necessary property repairs—potentially leaving vulnerable homeowners and renters exposed to deteriorating conditions.

Shockingly, rather than issuing formal statements, Pulte announced these drastic changes by posting photos of printed memos on X (formerly Twitter), offering no justification beyond political posturing.

The impact of these rollbacks is staggering. In 2023 alone, Fannie Mae’s HomeReady First SPCP program facilitated 921 loans, distributing over $5 million in down payment or closing cost assistance. Meanwhile, lender-sponsored SPCPs helped finance 4,747 additional loans, benefiting 5,668 households. Freddie Mac’s similar initiatives assisted another 9,300 households. These were not handouts—they were lifelines for working-class Americans striving for stability and financial security.

The rollback of these programs is a direct assault on housing equity. By dismantling these initiatives, the FHFA is turning back the clock on decades of progress, resurrecting barriers that have long kept marginalized communities from building generational wealth. Redlining comes to mind.

This is not just policy—it’s personal. It’s about families forced to keep renting because homeownership is once again out of reach. It’s about communities losing vital protections that ensure safe and fair housing. And it’s about whether we, as a society, will accept this deliberate erosion of opportunity. Who is this going to impact the most? People of color and low income people.

The arguments for scraping the home loan programs sound like the same old tired top-bottom economic arguments we have heard for decades:

1. Preventing Market Distortions, Reducing Taxpayer Risk, Encouraging Private Sector Solutions and avoiding a Repeat of Past Financial Crises.

Instead of targeted lending programs, Pulte and his supporters advocate for policies that address housing supply issues, such as deregulation of zoning laws, incentives for builders, and tax policies that encourage new construction. They argue that increasing the housing supply will have a more meaningful and lasting impact on affordability than credit-based interventions. How many times have we heard that the private sector will do the job better than the government?

Except when left to the private sector very little of the housing they build is affordable or available to lower income people. Tax cuts, lifting zoning laws, tax policies, and incentives for builders. What is missing? Incentives for home buyers. This is redlining in 2025.

The question now is: Will we let this stand? Housing advocates, policymakers, and everyday citizens must act. Demand accountability. Contact your representatives. Support organizations fighting for fair housing. Because if we stay silent, the damage will be permanent.

Now is the time to fight back.

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