How Low Can You Go?

FHA’s request for input on small-dollar loans could mean much for this equality-essential product or little beyond a lot more public debate.  It was issued concurrently with a high-profile Administration event on racial equity, coming also in concert with a new HUD report on small-balance mortgages (i.e., those with balances of less than $70,000) mandated under an FY22 appropriations measure.  Depending on what it does, HUD could do more for small-dollar loans than FHFA explicitly pressed in its equitable-finance plan, although Fannie and Freddie might come round to crafting some programs in the special-purpose credit programs they anticipate.