April 7, 2004
HUD RAISES HOUSING GOALS FOR FANNIE MAE AND FREDDIE MAC
New regulations to increase mortgage financing for homebuyers and underserved communities
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) this week proposed new federal regulations that would significantly raise the targeted lending requirements for the nation's two largest mortgage finance companies, Fannie Mae and Freddie Mac. HUD estimates that over the next four years an additional one million low-and moderate-income families would be served as a result of the new goals.
"Although the nation is experiencing a record high homeownership rate of 68.6 percent, there is still more to be done," said HUD Secretary Alphonso Jackson. "These government sponsored enterprises can and must further use their power in the marketplace to ensure that more low-income and minority families get on the path to homeownership."
By statute, HUD sets the annual affordable housing goals that require a percentage of Fannie Mae and Freddie Mac's lending go to underserved borrowers and communities. The proposal is currently under a 15-day congressional review after which there will be a 60-day public comment period.