HUD ANNOUNCES 2006 AFFORDABLE HOUSING GOALS PERFORMANCE RESULTS FOR FANNIE MAE AND FREDDIE MAC

WASHINGTON - The Department of Housing and Urban Development today announced its official 2006 housing goal and subgoal performance figures for Fannie Mae and Freddie Mac, two housing government-sponsored enterprises or GSEs. Both GSEs met or exceeded the housing goals, the special affordable multifamily subgoal, and home purchase subgoals for 2006.

HUD's official 2006 housing goals and special affordable multifamily subgoal performance figures for Fannie Mae and Freddie Mac are:

HUD's 2004 regulation created new home purchase subgoals under each of the housing goals. The home purchase subgoals encourage the GSEs to facilitate greater financing and homeownership opportunities for families, including first-time homebuyers, and underserved communities targeted by the housing goals.

HUD's official 2006 home purchase subgoal performance figures for Fannie Mae and Freddie Mac are:

Under the 2006 housing goals, Fannie Mae and Freddie Mac purchased mortgages that financed 3,669,950 owner and rental housing units occupied by low- and moderate-income families, 1,768,667 housing units occupied by special affordable families (i.e., very-low-income families or low-income families living in low-income neighborhoods), and 2,901,547 housing units located in underserved areas.

Together, the GSEs' purchases under the housing goals totaled $370 billion for low- and moderate-income loans, $133 billion for special affordable loans, and $376 billion for underserved area loans.

Performance under the housing goals is measured as the percentage of dwelling units financed by purchased mortgages that meet goal eligibility requirements relative to all dwelling units financed by purchased mortgages during the year. Under HUD's regulations, a housing unit may count towards more than one goal or subgoal in the performance year. 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.

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 the GSEs' performance in achieving these goals.

FHEFSSA also requires HUD to monitor the GSEs' 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.

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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 HIV/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.