Bridging the financial inclusion divide digest

Recession concerns ease, economic challenges continue

While concerns about a possible economic recession have eased slightly, the economy continues to face challenges such as a slowdown and elevated interest rates. In our most recent issue, we’re offering a look at recent regulatory advancements with a focus on how regulators are prioritizing greater transparency and improved access to credit and implementing noteworthy changes within FSI. Additionally, the Federal Housing Finance Agency (FHFA) has been steadfast in its ongoing endeavors to ensure housing for all. Explore the digest for insights into how these regulatory developments may affect your business.

Key takeaways

Despite the growing momentum of financial inclusion as a solution for achieving economic parity, a significant amount of unfinished work remains. Moreover, implementing and prioritizing measures that help ensure fair access to financial services for vulnerable groups can result in reduced barriers, improved financial literacy, and less discrimination. In this issue, we highlight various ongoing regulatory initiatives aimed at addressing potential inequities: 

• The FHFA announced updated Equitable Housing Finance Plans for Fannie Mae and Freddie Mac, aiming to promote fair and affordable housing opportunities.
• Vice President Harris and the Treasury Department announced more than $1.73 billion to enhance access to capital and financial services in underserved communities, addressing economic disparities.
• The FHFA issued a final rule amending the Enterprise Duty to Serve Underserved Markets regulation, encouraging Fannie Mae and Freddie Mac to serve low-income and underserved communities. It also proposed a rulemaking on fair lending oversight, signaling increased attention to ensure fair lending practices and prevent discriminatory practices in the housing market.
• The Treasury Department held roundtable discussions to discuss the American Rescue Plan’s investments in rental assistance for AANHPI communities and engaged with financial institutions serving low-income and minority communities in California.
• Treasury Deputy Secretary Wally Adeyemo and Counselor for Racial Equity Janis Bowdler attended an ECIP roundtable with UC Investments, discussing the Treasury’s $8.4 billion investment in CDFIs and MDIs. The focus was on expanding financial services in underserved communities, benefiting low-income families, immigrants, and people living in rural areas in California.