HUD Proposes Increase to Targeted Lending Requirements for GSEs
The U.S. Department of Housing and Urban Development (HUD) this week proposed new federal regulations that would significantly raise the targeted lending requirements for Fannie Mae and Freddie Mac. HUD estimates that over the next four years an additional one million low-and moderate-income families would be served as a result of the new goals. By statute, HUD sets the annual affordable housing goals that require a percentage of Fannie Mae and Freddie Mac's lending go to underserved borrowers and communities. The proposal is currently under a 15-day congressional review after which the proposed rule will be published in the Federal Register for public comment.