Industry News

New housing goals finalized for Fannie, Freddie

Cos. to increase purchases of loans held by low-income families

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The U.S. Department of Housing and Urban Development has finalized a rule that will require the nation's two largest housing finance companies to increase their purchase of mortgages for low- and moderate-income families and underserved communities. The new final rule will be published in the Federal Register on Nov. 2 and become effective on Jan. 1, 2005. It will set annual housing goals and new subgoals for Fannie Mae and Freddie Mac for the next four years. These targets will increase year-by-year from 2005 through 2008 and aim to bring Fannie Mae and Freddie Mac to a position of leadership in the mortgage finance industry. "These new affordable housing goals will help the GSEs achieve the standard that Congress intended–leading the mortgage finance industry in helping low- and moderate-income families afford decent housing," said HUD Secretary Alphonso Jackson. "These new goals will push the GSEs to genuinely lead the market." HUD's rule establishes new subgoals for low- and...