So did the government really lean on Fannie and Freddie? Or was it just a lot of nudging and winking. Here’s a HUD press release from October 2006:
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:
| HOUSING GOALS | Goal Targets |
FANNIE MAE Results |
FREDDIE MAC Results |
|---|---|---|---|
|
Low- and Moderate-Income |
52% |
55.06% |
54.00% |
|
Central Cities, Rural Areas, and Other Underserved Areas |
37% |
41.43% |
42.27% |
|
Special Affordable |
22% |
26.28% |
24.28% |
|
Special Affordable Multifamily Fannie Mae = Freddie Mac =
|
|
|
|
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:
| Home Purchase Subgoals | Subgoal Targets |
FANNIE MAE Results |
FREDDIE MAC Results |
|---|---|---|---|
|
Low- and Moderate-Income
|
45%
|
44.59%
|
46.84%
|
|
Central Cities, Rural Areas, and Other Underserved Areas
|
32%
|
32.56%
|
35.53%
|
|
Special Affordable |
17% |
17.03% |
17.73% |
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 at www.hud.gov and espanol.hud.gov
