	Introduction

Housing and residential mortgage markets in the United States are continuing to recover from several years of turmoil that began with the bursting of a housing "bubble" that peaked in the mid-2000s and burst in 2007-2008. In addition, housing affordability continues to be an issue for many households in general, and for low-income renter households in particular. The 114 th Congress considered a number of housing-related issues against this backdrop. Congress also considered certain changes related to two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, as well as other housing finance-related issues. These issues included appropriations for housing programs in a limited funding environment, certain reforms to some HUD-assisted housing programs, the reauthorization of the main program of housing assistance for Native American tribes, and debate about GSE contributions to two affordable housing funds that were created in 2008 but received GSE funding for the first time beginning in 2016. Additional issues of active interest to Congress included oversight of HUD on the occasion of the department's 50 th anniversary, issues related to enforcement of the Fair Housing Act, and the status of certain housing-related tax provisions. Home Foreclosures

Partly because of rising house prices and decreasing negative equity, mortgage foreclosure rates have also been consistently declining. Both have been increasing somewhat in recent years, though new home sales in particular remain relatively low. Nevertheless, as housing markets have started to stabilize, there have been signs that housing starts are also beginning to increase. Interest Rates

Relatively low numbers of mortgage originations have persisted despite continued low mortgage interest rates. Furthermore, a mortgage might be insured by a federal government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Although the supply of rental housing has also increased, both through new construction and as some formerly owner-occupied homes are converted to rentals, in many markets the rise in the number of renters has increased competition for rental housing and pushed up rents. Rising rents can contribute to housing affordability problems, particularly for households with lower incomes. Given these concerns, some Members of Congress have sought to stop Fannie Mae and Freddie Mac from funding the Housing Trust Fund and/or the Capital Magnet Fund. As discussed earlier in the " Overview of Housing and Mortgage Market Conditions " section, mortgage originations and home sales are at relatively low levels and mortgage credit is relatively tight compared to the early 2000s, and some argue that the new regulations have contributed to the slow recovery. The Supreme Court's holding in Inclusive Communities that "disparate-impact claims are cognizable under the [FHA]" mirrors previous interpretations of the Department of Housing and Urban Development (HUD) and all 11 federal courts of appeals that had ruled on the issue. HUD's Affirmatively Furthering Fair Housing (AFFH) Rule

The Fair Housing Act also requires HUD to administer its programs in a way that affirmatively furthers fair housing. This income is typically referred to as canceled mortgage debt income. With regard to the first justification, it is not clear that the deduction for mortgage insurance premiums has an effect on the homeownership rate.
Housing and residential mortgage markets in the United States are continuing to recover from several years of turmoil that began in 2007-2008, though the recovery has been uneven across the country. Nationally, home prices have been consistently increasing since 2012. Negative equity and mortgage foreclosure rates have been steadily decreasing, though both remain elevated. Home sales have begun to increase, with sales of existing homes approaching levels that were common in the early 2000s, though sales of new homes and housing starts remain relatively low.
Mortgage originations have also remained relatively low despite ongoing low interest rates, leading many to argue that it is too difficult for prospective homebuyers to qualify for a mortgage. Some believe that this is because mortgage regulations put in place in recent years are restricting access to mortgages for creditworthy homebuyers, while others hold that these rules provide important consumer protections and suggest that other factors are limiting mortgage access. About two-thirds of new mortgages continue to be backed by Fannie Mae or Freddie Mac or insured by a government agency such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), with the remaining mortgages mostly being held on bank balance sheets.
In the rental housing market, vacancy rates have continued to decline and rents have continued to increase as more households become renters. Although the supply of rental housing has also increased, it has generally not kept pace with the increasing demand. Rising rents have contributed to housing affordability problems, which are especially pronounced for low-income renters.
The 114th Congress considered a number of housing-related issues against this backdrop. Some of these issues were related to housing for low-income individuals and families, including appropriations for housing programs in a limited funding environment, proposed reforms to certain rental assistance programs administered by the Department of Housing and Urban Development (HUD), debate over funding for two affordable housing funds (the Housing Trust Fund and the Capital Magnet Fund), and the possible reauthorization of the main program that provides housing assistance to Native Americans. Congress also took the occasion of HUD's 50th anniversary to reflect on the department's role through hearings and other actions.
Congress also deliberated on certain housing finance-related issues, including possible targeted changes to Fannie Mae and Freddie Mac, oversight of mortgage-related rulemakings, and issues related to the future and financial health of FHA.
Two fair housing issues were also active in the 114th Congress. HUD recently released a new rule updating certain HUD grantees' responsibilities to "affirmatively further" fair housing. Separately, the Supreme Court issued a decision affirming that disparate impact claims are allowable under the Fair Housing Act. Congress expressed interest in both of these developments.
As in recent years, the 114th Congress considered several housing-related tax provisions as part of a broader tax extenders bill. These housing-related provisions included extensions of the exclusion for canceled mortgage debt, the deduction for mortgage insurance premiums, and provisions related to the low-income housing tax credit.