Changes to Special Purpose Credit Programs

The recently announced termination of Special Purpose Credit Programs (SPCP) by the FHFA director Bill Pulte signifies a significant shift in affordable housing initiatives offered by Fannie Mae and Freddie Mac. These programs were designed to assist borrowers who met most qualification criteria but faced challenges like meeting down payment requirements. While the SPCP provided financial grants to help bridge affordability gaps, its impact in 2023 was limited, accounting for only 0.8% of mortgage loans originated that year. Loan officers who relied on these programs must now pivot towards alternative options such as FHA loans or state-level housing finance agencies, though the available resources may not fully replicate the accessibility the SPCP offered to certain communities.