HUD Finalizes Rule on Housing Goals for GSEs
The U.S. Department of Housing and Urban Development (HUD) today finalized a rule setting annual housing goals for government sponsored entities (GSEs) Fannie Mae and Freddie Mac for the next four years. These targets will increase year-by-year from 2005 through 2008. HUD's rule establishes new subgoals for low- and moderate-income, underserved areas, and special affordable percentages of home purchase loans that are purchased by the GSEs. HUD says the final rule includes consideration of more than 300 comments received from the GSEs, Congress and a broad spectrum of organizations within the mortgage finance industry. After analyzing the comments and reviewing Home Mortgage Disclosure Act (HMDA) data, HUD reduced by one percentage point some of the housing goals from the levels contained in the proposed rule.