HUD Secretary Fudge, Deputy Secretary Todman Participate in Second Annual Freedman's Bank Forum Featuring Vice President Kamala Harris

Secretary Fudge Announces New Action and Report to Explore Increasing Availability of Small Balance Mortgages

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and Deputy Secretary Adrianne Todman today participated in the second annual Freedman's Bank Forum held by the U.S. Department of the Treasury, which featured Vice President Kamala Harris. Secretary Fudge delivered remarks while Deputy Secretary Todman led a roundtable discussion on asset building in underserved communities.

During her remarks, Secretary Fudge announced new a new step HUD's Federal Housing Administration (FHA) is taking to explore increasing the availability of small balance mortgages, with the aim of better supporting and expanding affordable homeownership opportunities in underserved markets with lower housing prices. Secretary Fudge also announced the release of a new HUD report that assesses the factors that limit the supply of small mortgages and the impact to affordable homeownership for those interested in lower-priced homes.

"I am pleased to announce that HUD is soliciting specific and actionable feedback on the availability of small balance mortgages," said Secretary Fudge. "We want to know what barriers prevent financial institutions from originating these loans. We want the banking industry's recommendations for how we can increase the volume of small mortgage loans in FHA programs. We know that people who live in less expensive or rural areas often find it hard to get a mortgage for a lower-priced home. In fact, today we released a report assessing the limited supply of small mortgages and the impact that has on affordable homeownership. It is my hope that this report, and public feedback, will help us identify steps we can take to turn the tide."

To facilitate greater availability of small-balance mortgages, HUD's RFI will solicit specific and actionable feedback on the barriers that prevent the origination of these mortgages and recommendations for increasing the volume of small-mortgage loans in FHA programs. The RFI supplements HUD's new report to Congress, Financing Lower-Priced Homes: Small Mortgage Loans, which brings light to the challenges facing homeowners seeking smaller loans. By better understanding these challenges, policymakers can identify tools to increase the availability of such loans.

Deputy Secretary Todman co-hosted her roundtable, "Asset Building in Underinvested Communities," with Marla Bilonick, President and CEO of the National Association for Latino Community Asset Builders (NALCAB). Other roundtable topics included addressing lender capacities, financing diverse housing suppliers, financing an equitable climate transition, and the Inflation Reduction Act.

This year's Freedman's Bank Forum highlighted the Biden-Harris administration's efforts to increase economic opportunity and growth for communities of color and address the persistent drivers of the racial wealth divide. The forum is named for the original Freedman's Savings and Trust Company, which was established in 1865 to provide newly emancipated Black Americans with the financial mechanisms to safeguard their earnings, build financial security, and generate family wealth.

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