Allocated Money Will Finally Fund the National Housing Trust FundImage Banner

Allocated Money Will Finally Fund the National Housing Trust Fund

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Allocated Money Will Finally Fund the National Housing Trust Fund

December 19, 2014
The National Housing Trust Fund (NHTF), which was created in 2008 as a means of funding affordable housing for low-income individuals, has been unfunded since its inception. That changed last week when the Federal Housing Finance Agency (FHFA) issued a statement directing Fannie Mae and Freddie Mac to begin allocating funding to the NHTF. The NHTF is administered by the Department of Housing and Urban Development (HUD), which also issued a statement regarding the action. 
 
The FHFA separately issued an interim final rule which addresses the statutory requirement that the allocations may not result in transferring their expense to originators or other Enterprise counterparties.