LeadingAge joined a June 23 letter on the FHFA’s proposed rule on Equity Housing Finance. The letter was coordinated by the Underserved Mortgage Markets Coalition to the Federal Housing Finance Agency (FHFA), which has oversight over Fannie Mae and Freddie Mac. EHF is Fannie and Freddie’s language for how Fannie and Freddie will ensure they fulfill their missions to serve low- and moderate-income families and underserved populations.

LeadingAge joined the Underserved Mortgage Markets Coalition earlier this year to add our voice to efforts to close the homeownership gap so that as people age, they accumulate as much wealth as possible to meet their needs. There is a wide racial divide in who owns a home and who does not, with 73% of white households owning their homes compared to 44% of Black households who do.

According to the Joint Center for Housing Studies of Harvard University, homeowners aged 65+ have much greater wealth than 65+ renters, even when their incomes are similar. Why? Because of home equity.

For example, the lowest income quintile of 65+ owner households, have about $104,000 in net wealth. The lowest income quintile of 65+ renter households have about $1,100 in net wealth. In that lowest income quintile, that’s more than a $100,000 difference between owner and renter net wealth and the difference just gets greater and greater as income quintiles go up.

When the need arises to have to pay for in-home help or other care expenses, older homeowners have more financial capacity to do so than renters. Fannie and Freddie hold more than two-thirds of our nation’s mortgages and are a massive influencer in equitable access to homeownership and its benefits.