(Bloomberg) -- The head of the US Federal Housing Finance Agency ordered to end Fannie Mae and Freddie Mac programs intended to support first-time homebuyers by providing down payments and closing-cost assistance.

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Bill Pulte, who was confirmed as FHFA director earlier this month, signed a directive Tuesday to terminate special purpose credit programs supported by the two government-sponsored enterprises, according to a notice posted on X.

SPCPs, designed to help economically or socially disadvantaged groups, allow lenders to offer certain credit flexibilities, such as special pricing for certain loans. The programs, created through the Equal Credit Opportunity Act, allowed certain first-time homebuyers to have lower downpayments and credit scores.

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The FHFA “has determined that the current level of support for SPCPs is inappropriate for regulated entities in conservatorship,” according to the notice signed by Pulte.

The real estate industry is carefully watching moves by Pulte who would play an important role in any effort to privatize Fannie and Freddie. Releasing the entities from conservatorship should be “carefully planned” to keep the housing market stable and not pressure mortgage rates, he said last month.

The Mortgage Bankers Association, an industry trade group, has previously supported SPCPs as a tool to increase mortgage-credit availability to underserved groups.

Pulte signed a separate order Tuesday waiving certain requirements related to “equitable housing finance planning and reporting,” according to a post on X. Those rules required the FHFA to adopt an equitable housing finance plan and publish an annual performance report related to the process.

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