U.S. Senator Sherrod Brown, Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, along with several other senators, has called on the Federal Housing Finance Agency (FHFA) to implement a clear process for renters and local officials to report issues at properties backed by Fannie Mae and Freddie Mac. These enterprises finance over 40% of multifamily mortgages across the United States.
The call comes in response to reports from local leaders and renters about maintenance problems and concerns indicating that some property owners may not be adhering to their financing terms. The lawmakers expressed concern that there is currently no clear process for residents or community members to report these issues to either the Enterprises or FHFA.
“Local officials and residents are the canaries in the coal mine,” stated the lawmakers. “They live in these homes. They see them every day. They are best equipped to spot issues early on and help have them addressed before a small problem becomes a critical issue.”
The letter addressed to Director Thompson emphasized that failure to establish such a process undermines both the mission of Fannie Mae and Freddie Mac as well as their safety and soundness.
The senators urged FHFA to direct Fannie Mae and Freddie Mac to create methods for reporting issues electronically or by phone, alongside processes for responding directly to those concerns. Additionally, they requested FHFA develop monitoring procedures for responses received from complaints submitted by residents or local officials.
“When property owners let their properties fall into disrepair or fail to follow their contractual obligations…they hurt families, communities, and the stability of our housing finance system,” concluded the letter.
