|HUD No. 00-23|
|Further Information:||For Release|
|In the Washington, DC area: 202/708-0685||Wednesday|
|Or contact your local HUD office||February 2, 2000|
HUD REVIEWING MORTGAGE APPROVAL DATA SUBMITTED BY FANNIE MAE TO DETERMINE IF COMPANY PROVIDED REQUIRED INFORMATION
WASHINGTON - The Department of Housing and Urban Development received a large volume of information this week from housing finance company Fannie Mae about the company's computerized mortgage evaluation system, and has begun reviewing the material to determine its completeness and accuracy.
Once HUD has completed its review of the material submitted by Fannie Mae, it will determine if the company is in compliance with a HUD request for complete and accurate information about the evaluation system. HUD cannot make a determination on the compliance issue before the review is completed.
HUD is requiring Fannie Mae to provide the information to determine if the company is in compliance with fair lending standards, which are designed to prevent mortgage lending discrimination against minorities and others.
Fannie Mae buys mortgages issued by banks, thrift institutions and other mortgage lenders, and then sells them to investors as mortgage-backed securities. This provides the lenders with the cash needed to issue new mortgages.
Congress has given HUD the responsibility of regulating Fannie Mae because the company is a Government Sponsored Enterprise. Fannie Mae was chartered by Congress to help expand homeownership, particularly among low- and moderate-income families, first-time homebuyers, and residents of communities underserved by mortgage credit.