The updated policies should work to encourage lenders to provide mortgages for properties that will be used for group homes and allow for more community-based living options for people with disabilities, the Department of Housing and Urban Development said.
“Clarifying these policies regarding the eligibility of group homes for the secondary mortgage market is an important step to fulfilling the Fair Housing Act’s promise of providing individuals with disabilities equal access to housing opportunities,” said Marcia Fudge, secretary of housing and urban development. In response, Freddie Mac worked with the Department of Housing and Urban Development and the Federal Housing Finance Agency to revise its policies. The lender refused the loan based on the inaccurate belief that Freddie Mac would not buy the mortgage.
The move comes after a Department of Housing and Urban Development investigation of a mortgage lender who declined to loan money to a homeowner who was renting to a company operating a group home. A mortgage secured by such a property may be eligible for sale, provided it meets our guide requirements,” the guide states.
“We have updated our property eligibility requirements to specifically state that a property being used as a group home for individuals with disabilities is not considered an ineligible property.
