Today the Federal Housing Finance Agency released a list of its new housing goals for mortgage giants Fannie Mae and Freddie Mac, which are under the conservatorship of the FHFA.
Fannie and Freddie were seized by federal regulators in 2008 to avoid their insolvency. Since that time, $150,000,000,000 of taxpayer money has been used to keep the mortgage lenders afloat. The Obama Administration has pledged and unlimited amount of capital to backstop the losses of the GSEs. Total estimates for the cost of the bailout of Fannie and Freddie range between $400 billion and $1 trillion dollars.
The goals are as follows:
The benchmarks for the four single-family goals are (as expressed as a percentage of mortgages acquired by the GSEs):
- 27 percent for the low-income home purchase goal
- 8 percent for the very low-income family home purchase goal
- A percentage to be set annually by FHFA for the low-income/high minority/disaster areas home purchase goal (with a subgoal of 13 percent to measure acquisitions in low-income/high minority areas only); and
- 21 percent for the low-income family refinance goal.
The final multifamily goals reflect the current market conditions and are lower than those proposed initially:
- Fannie Mae’ s goal is to acquire mortgages that finance at least 177,750 low-income rental units and 42,750 very low-income rental units.
- Freddie Mac’s goal is to acquire mortgages that finance at least 161,250 low-income rental units and 21,000 very low-income rental units.
- The Enterprises must also report on their acquisition of mortgages involving low-income units in small (5- to 50-unit) multifamily properties.
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