H
ousing leaders are calling for a new era in real estate where the federal government takes a more active role in issues like zoning, mortgages, insurance, and appraisals. At the Mortgage Bankers Association's annual conference, HUD Secretary Adrianne Todman and FHFA Deputy Director Naa Awaa Tagoe discussed how their agencies aim to increase access to housing for all Americans by addressing affordability, equity, and efficiency.

    The federal government is focusing on closing the housing supply gap, addressing insurance coverage gaps, and expanding mortgage access to low-income earners. Despite recent gains in single-family housing starts, high interest rates and housing costs continue to weigh on homebuyers. Todman emphasized that "bold, decisive action" is needed to address these issues.

    HUD is working with local governments to modernize their housing development processes, including providing funding for communities to identify inefficiencies in permitting and zoning codes. The agency can also offer model zoning codes for jurisdictions lacking capacity to conduct this work on their own.

    Removing barriers to affordable housing could have a significant impact on younger Americans who may not see a future where they can achieve homeownership. A June survey found that housing affordability was the top election issue among Gen Z voters, and many consumers now plan to continue renting due to market challenges for buyers.

    Agencies like FHFA are also addressing insurance coverage gaps and home appraisal disparities in historically underserved communities. FHFA has convened talks with insurance providers to advocate for reforms like including property replacement cost coverage in policies. This would guarantee that homeowners receive enough money to replace their homes after a disaster.

    FHFA and HUD have partnered to improve HUD's single-family mortgage data and address appraisal bias. The new dataset includes mortgages insured by HUD's Federal Housing Administration, which include borrowers with limited credit profiles and poor credit scores. Todman emphasized the need for accurate, up-to-date data on the appraisal market to eliminate racial or ethnic bias in appraisals.