June 25, 2004
HUD EXTENDS COMMENT PERIOD ON NEW HOUSING GOALS FOR FANNIE MAE AND FREDDIE MAC
New regulations to increase mortgage financing for homebuyers and underserved
WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today extended the comment period on the new housing goals proposed for Fannie Mae and Freddie Mac. The proposed new federal regulations would significantly raise the targeted lending requirements for the nation's two largest mortgage finance companies. 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.
The proposed rule public comment period was scheduled to end on July 2, but due to consideration of the holiday weekend and various requests for additional time, HUD is extending the comment period for two weeks. The public comment period will now end July 16, 2004.
"Although the nation is experiencing record high homeownership rates, there is still more to be done," said 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. Following the public comment period and after consideration of comments received, HUD will publish a Final Rule before it takes effect in 2005.