Inside Mortgage Finance

FHFA Eliminates Key Fair Lending/Fair Housing Rule

The Federal Housing Finance Agency (FHFA) announced the repeal of its longstanding fair‑lending and fair‑housing rule that imposed heightened nondiscrimination standards on GSE‑originated mortgages. A recent GAO review gave FHFA a clean bill of health on its accounting, while noting $32.9 million in costs tied to the termination of 216 staff members. Industry observers say the rollback eases compliance burdens for lenders, but consumer‑advocacy groups warn it could erode fair‑housing protections. The move coincides with a dip in GSE stock prices as expectations of an early conservatorship exit wane.