Industry News

HUD plan would raise Fannie, Freddie affordable housing goals

Proposal now faces public comment

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The U.S. Department of Housing and Urban Development announced a proposed rule today that would increase the affordable housing goals for Fannie Mae and Freddie Mac. The proposed rule, which now has a 60-day public comment period, would increase the goals of the two housing government-sponsored enterprises in stages over a four-year period beginning January 2005. It also would establish new home purchase mortgage subgoals under each housing goal, something that hasn't been set out before. Here's a look at the proposed changes: The low- and moderate-income goal targets families earning an income of less than or equal to an area's median income. The current goal is 50 percent. Under the proposed changes, that would increase to 52 percent in 2005, 53 percent in 2006, 55 percent in 2007 and 57 percent in 2008. The underserved areas goal targets housing located in low-income and high-minority census tracts. The current goal is set at 31 percent. The new rules would change that to 38 percen...