By Eugene T. Lowe
July 1, 2002

GSE'S, Mortgage Bankers, Homeless Council Brief Housing

The Community Development and Housing Committee met on Saturday, July 15, to consider several policy resolutions and to hear the latest developments from four key groups in housing: the U.S. Interagency Council on Homelessness, the Mortgage Bankers Association, Fannie Mae and Freddie Mac.San Francisco Mayor Willie L. Brown, Jr, Chair of the Conference of Mayors Standing Committee on Community Development and Housing, moderated the session.

The first speaker, Philip F. Mangano, Executive Director of the U.S. Interagency Council on Homelessness told the mayors that the intervention strategy of the Continuum of Care needs to be matched with a prevention strategy or else we will continue to experience homelessness as an intractable problem. Mangano talked about President's new initiative to end chronic homelessness in the next 10 years, and the new effort being made to coordinate the federal government agencies with homelessness programs. Mangano said that 18 different federal agencies are involved. As an example of this new effort rs Mangano told the mayors that HUD and HHS will soon issue a joint NOFA on homelessness.

John A. Courson,Chairman-elect of the Mortgage Bankers Association urged the mayors to support H.R. 3995, the Housing Affordability Act for America of 2002. This bill, Courson said, would follow up on the increase in FHA loan limits for multi family housing that were increased last year. The bill would index the loan limits so that we would not have to go back for an increase as will be needed to provide mortgage loans in the cities. Courson also told the mayors that the Mortgage Bankers are strongly opposed to predatory lending practices. He said that "we need to enforce the laws on the books." Courson said that the process of getting a mortgage loan should also be simplified because the complicated process that we now have lend itself to those whDavid M. Dworkin, Vice President for Regional Management and Housing Partnerships of Fannie Mae briefed the mayors on an employer assisted housing, one of the tools offered by Fannie Mae to help mayors to retain workers for government and industry in local communities. Dworkin presented two examples—- a teacher and a firefighter who were able to get loans to purchase homes with a minimum downpayment. This program, Dworkin told the mayors can be structured by Fannie Mae to meet the needs of the city.

David M. Dworkin, Vice President for Regional Management and Housing Partnerships of Fannie Mae briefed the mayors on an employer assisted housing, one of the tools offered by Fannie Mae to help mayors to retain workers for government and industry in local communities. Dworkin presented two examples—- a teacher and a firefighter who were able to get loans to purchase homes with a minimum downpayment. This program, Dworkin told the mayors can be structured by Fannie Mae to meet the needs of the city.

Jim Park, Director of Housing and Industry Outreach of Freddie Mac spoke to the mayors about three issues: increasing minority homeownership, predatory lending, and the importance of financial literacy. Park said that the gap of minority homeownership to that of whites is a tremendous problem. It also represents a wealth gap. Homeowners, he said, had an average wealth of over $100,000 while renters have an average wealth of only two to four thousand dollars. Freddie Mac has a variety of programs that are addressing this problem. Park told the mayors about Freddie Mac's program "Don't Borrow Trouble," which educates consumers on predatory lending practices. He also said that Freddie Mac has created a program to help people with financial literacy. TResolutions

Resolutions

Support for Federal Legislation to Combat Predatory Lending supports the "Predatory Lending Consumer Protection Act of 2002."

Historic Homeownership Tax Credits supports the Historic Homeownership Assistance Act and urges Congress and President Bush to enact it expeditiously.

Increasing Minority Homeownership Rates calls on mayors to develop public/private coalitions to provide citizens, especially in the minority and traditionally underserved neighborhoods, with enhanced opportunities to homeownership.

TANF and Housing Policy supports a complementary and coordinated housing and TANF agenda that:Makes it simpler for states to use TANF funds to provide supplemental housing benefits; funds new welfare to work vouchers; funds a new joint HUD/HHS demonstration project for families with multiple barriers to work that combines housing assistance with services; encourages welfare agencies and housing agencies to cooperate and requires states to consider housing needs in TANF planning and implementation; expands the availability of housing vouchers where needed and expands production of workforce housing where needed.

A Proactive Approach to Childhood Lead Poisoning supports The White House quickly rallying federal, state, and local government, private-sector, and community leaders to eradicate childhood lead poisoning from the nation and make cities lead-safe by 2010.

A New Housing Policy for the Nation calls for a comprehensive national housing policy that addresses the variety of housing challenges in our urban communities, including homeownership, rental housing, public housing, special needs housing and homelessness issues; and the Conference of Mayors urges the Administration and Congress to work closely with the nation's mayors and their communities on the following recommendations adopted at the Conference of Mayors Housing Forum to advance the goal of increasing affordable housing opportunities and access to housing.

Funding HUD Programs urges the Congress to create an affordable rental housing production and preservation element within the HOME program authorized at a funding level of at least $2 billion, with no less than 60 percent of the funds allocated directly to local governments.