Industry News

Fannie, Freddie fall behind in affordable housing

Mortgage giants lag primary market in 44 states

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Fannie Mae and Freddie Mac have lagged behind the primary market in 44 states in their commitment to provide affordable housing for low- and moderate-income families, according to data released Thursday from 1999-2002 by the U.S. Department of Housing and Urban Development. "While the (government sponsored enterprises) met the affordable housing goals in 2002, they must further utilize their entrepreneurial talents and power in the marketplace to genuinely lead the mortgage finance industry as Congress intended," said HUD secretary Alphonso Jackson. HUD recently proposed new housing goals, which it said would push the GSEs to do what is expected of them – helping low- and moderate-income families at least at the same percentage levels as primary market lenders. HUD estimates that if the GSEs matched the overall single-family market during the time frame studied, they would have acquired an additional 470,000 single-family loans for low- and moderate-income families. Focusing onl...