Magazine article Mortgage Banking
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 underserved areas was topped by Fannie Mae at 41.43 percent and by Freddie Mac at 42.27 percent.
Fannie Mae hit HUD's special affordablehousing coal 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 moderateincome housing, Freddie Mac posted a 46.84 percent result, while Fannie Mae fell just short at 44.59 percent.
The two GSEs both met the homepurchase subgoal for central cities, rural areas and other underserved areasFreddie Mac posted a 35. …