U.S. Senate Committee on Banking, Housing and Urban Affairs Democrats urge FHFA Director Pulte to pursue eight housing affordability actions

The U.S. Senate Committee on Banking, Housing and Urban Affairs’ minority published a press release on a letter from Senator Elizabeth Warren, Senate Minority Leader Chuck Schumer, and Senator Cory Booker to Federal Housing Finance Agency (FHFA) Director Bill Pulte urging him to use FHFA authorities to bring down housing costs. The senators also urged Pulte to stop what they described as aiding President Donald Trump’s illegal campaign to take over the Federal Reserve. The letter cited deteriorating affordability indicators including house prices rising 3% year-on-year, existing home prices reaching an all-time high in June, and median asking rents 41% higher than in 2020, alongside higher building materials costs and expected increases in housing-related insurance premiums tied to tariff policies. It set out eight recommended actions: assess consumer and market impacts of potential Fannie Mae and Freddie Mac reprivatisation; increase support for lending aligned with affordable housing goals and FHFA’s duty to serve low- and moderate-income households; support affordable multifamily construction and rehabilitation lending; support lending models that preserve long-term affordability; support fair housing and fair lending initiatives; recommence implementation of tenant protections; transition to a bi-merge credit reporting system; and increase Federal Home Loan Banks’ (FHLBs) Affordable Housing Program (AHP) investments.