Too Many Cooks, Not Enough Risk Management

FHLS Reforms

GCFP Director and Executive Director in American Banker

MIT Golub Center for Finance and Policy

Public Policy

Addressing the role of FHFA in dismantling racial discrimination within the U.S. housing finance system


In a response to the July 2021 Federal Housing Finance Agency (FHFA) Policy Statement on Fair Lending, former U.S. Department of Housing and Urban Development officials Michelle Aronowitz (Law Office of Michelle Aronowitz, PLLC), Vanessa Perry (Urban Institute), and Ed Golding (MIT Golub Center for Finance and Policy) suggest steps FHFA can take to strengthen fair housing compliance and eliminate vestiges of racial discrimination and dismantle the dual mortgage market for White and Black homeowners. Among other things, they suggest FHFA use its powers as regulator and conservator to require Freddie Mac and Fannie Mae to eliminate risk-based pricing and credit overlays.

Read the comment letter here