GSEs Meet HUD's Housing Goals; Fannie Misses Subgoal
Fannie Mae and Freddie Mac both met their mandated housing goals in 2005, but performance results for the two government-sponsored enterprises' (GSEs') home-purchase subgoals were more of a mixed bag, according to the Department of Housing and Urban Development (HUD).
HUD's analysis confirmed that Freddie Mac also achieved all the home-purchase subgoals for 2005, while Fannie Mae achieved only two of the three home-purchase subgoals--failing to meet the low- and moderate-income home-purchase subgoal.
By the numbers, Fannie Mae posted a result of 55.06 percent and Freddie Mac posted a result of 54 percent in HUD's low and moderate housing goal target of 52 percent. HUD's goal of 37 percent for lending in central cities, rural areas and other under-served areas was topped by Fannie Mae at 41.43 percent and by Freddie Mac at 42.27 percent.
Fannie Mae hit HUD's special affordable-housing goal target of 22 percent by posting a 26.28 percent result, while Freddie Mac hit 24.28 percent.
According to HUD, it 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.
Under the home-purchase subgoal of 45 percent for low- and moderate-income housing, Freddie Mac posted a 46.84 percent result, while Fannie Mae fell just short at 44. …