HUD ANNOUNCES 2005 AFFORDABLE HOUSING GOALS AND SUBGOALS PERFORMANCE RESULTS FOR FANNIE MAE AND FREDDIE MAC

WASHINGTON - The Department of Housing and Urban Development today announced its official 2005 housing goals and subgoals performance figures for Fannie Mae and Freddie Mac, two housing Government Sponsored Enterprises (GSEs). Both GSEs met the housing goals in 2005. Freddie Mac also achieved all the home purchase subgoals for 2005, while Fannie Mae achieved two of the three home purchase subgoals. HUD's analysis confirmed that Fannie Mae did not meet the Low- and Moderate-Income home purchase subgoal.

HUD's official 2005 housing goals and Special Affordable Multifamily subgoal performance figures for Fannie Mae and Freddie Mac are:

HUD established home purchase subgoals in 2004 to encourage the GSEs to facilitate greater financing and homeownership opportunities for families and neighborhoods targeted by the housing goals, especially first-time homebuyers.

The home purchase subgoals are expressed as percentages of the total number of mortgages purchased by the GSEs that finance the purchase (not refinance) of single-family, owner-occupied properties located in metropolitan areas.

HUD's official 2005 home purchase subgoal performance figures for Fannie Mae and Freddie Mac are:

In 2005, Fannie Mae and Freddie Mac financed 3,851,440 owner-occupied and rental housing units occupied by low- and moderate-income families; 1,787,438 housing units occupied by special affordable families (i.e., very-low-income families or families living in low-income neighborhoods); and 3,089,180 housing units located in underserved neighborhoods.

In terms of dollars, the GSEs' purchases under the housing goals totaled $431 billion for low- and moderate-income loans, $154 billion for special affordable loans, and $388 billion for underserved area loans. Under HUD's regulations, a housing unit may count towards more than one goal or subgoal in the performance year.

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ("FHEFSSA") requires HUD to ensure that Fannie Mae and Freddie Mac operate in compliance with their charter purposes. FHEFSSA mandates that the Department carry out specific responsibilities that include setting annual housing goals for the GSEs and monitoring and enforcing the GSEs' performance in meeting these housing goals. Under the statute, there is no penalty for failure to meet the Low-and Moderate Income or Underserved Areas subgoals.

FHEFSSA also requires HUD to monitor the GSE's compliance with fair lending laws, collect loan level data from the GSEs on their mortgage purchases, create and distribute a public use database of non-proprietary GSE purchase data, and approve or disapprove new GSE programs. The Department also has general regulatory authority over each GSE and is required to make such rules and regulations as are necessary to ensure that the purposes of FHEFSSA and the GSEs' charters are accomplished.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov

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