It was probably inevitable that the Biden administration would enlist housing giants Fannie Mae and Freddie Mac to push its woke agenda, and now it is. Last week, government-sponsored companies released plans to promote “equity” in housing, which are replete with race-based subsidies.
Fannie and Freddie have been in federal custody since the Treasury rescued them during the housing meltdown with a $190 billion taxpayer bailout. The Federal Housing Finance Agency (FHFA) has since regulated their capital, liquidity, and underwriting, as well as the mortgages they can acquire. Trump FHFA Director Mark Calabria kept the monsters on a leash, but there was always a risk that a future administration would loosen up and re-politicize home lending. That day has come.