Name 2 government bodies or agencies that have an impact on the national housing market. Explain the role of each body or agency in relation to the housing market.
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http://www.fhfa.gov/
Two government bodies or agencies that have an impact on the national housing market in the United States are the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA).
1. Department of Housing and Urban Development (HUD):
HUD is a government agency responsible for implementing and enforcing federal housing policies and programs. Its main role in relation to the housing market includes:
a. Regulation and enforcement: HUD regulates and enforces laws and regulations related to fair housing, equal opportunity, and non-discrimination in housing. It works to ensure that everyone has access to safe and affordable housing without facing any unlawful barriers.
b. Housing assistance programs: HUD manages various housing assistance programs, such as the Section 8 Housing Choice Voucher program and public housing programs. These programs aim to provide affordable housing options for low-income individuals and families.
c. Community development: HUD promotes community development and revitalization efforts, such as urban renewal and the development of affordable housing in underserved areas. It provides grants and funding to support the construction and rehabilitation of affordable housing projects.
2. Federal Housing Finance Agency (FHFA):
FHFA is an independent regulatory agency that oversees the federal housing finance system, which primarily encompasses Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Its role in relation to the housing market includes:
a. Supervision and regulation: FHFA supervises Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to ensure their safety and soundness. It establishes regulations and guidelines to promote stability, liquidity, and efficiency in the housing finance market.
b. Conservatorship: After the 2008 financial crisis, FHFA placed Fannie Mae and Freddie Mac under conservatorship and assumed control over their operations. It continues to manage their activities with the goal of stabilizing the housing market and protecting taxpayers' interests.
c. Affordable housing goals: FHFA sets annual affordable housing goals for Fannie Mae and Freddie Mac, aimed at promoting access to affordable mortgage financing for low- and moderate-income borrowers. It monitors their compliance with these goals to ensure they fulfill their mission of supporting affordable housing.
These government bodies play significant roles in shaping housing policies, ensuring fair housing practices, providing housing assistance, and regulating the housing finance system to promote affordability, accessibility, and stability in the national housing market.