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A Snapshot of FHFA’s Affordable Housing Goals

The FHFA released its Annual Housing Report Friday. It outlines Freddie Mac's and Fannie Mae's 2019 affordable housing activities, fulfilling a requirement of 1992's Safety and Soundness Act, and more.

To put it all in context, the report showed that Fannie Mae in its 2019 Annual Mortgage Report, acquired $568.3 billion of loans on
single-family, owner-occupied housing. Freddie Mac’s 2019 Annual Mortgage Report,  showed that the GSE acquired $429.4 billion of such loans.

In addition to describing the GSE's affordable housing-related actions, the report provided information about single-family loan GSE purchases broken down by race or ethnicity, gender, census tract median income, fixed-rate vs. adjustable-rate, loan-to-value ratio, and credit score, according to the introduction.

Some examples of single-family goals, outlined in the report:

  • A low-income home purchase goal for home purchase mortgages to families with incomes no greater than 80% of area median income (AMI);
  • A very low-income home purchase goal for home purchase mortgages to families with incomes no greater than 50% of AMI;
  • Low-income areas home purchase subgoal for home purchase mortgages to families living in census tracts with tract incomes no greater than 80 percent of AMI, or families with incomes no greater than 100 percent of AMI who live in census tracts with a minority population of 30% or more and a tract median income of less than 100% of AMI;
  • Low-income areas home purchase goal for mortgages that meet the criteria under the low-income areas home purchase subgoal described above, as well as home purchase mortgages to families with incomes no greater than 100% of AMI who live in a federally declared disaster area; and
  • A low-income refinance goal for refinancing mortgages to families with incomes no greater than 80% of AMI.

The report also delves into subprime, nontraditional, and higher-priced mortgage loan data.

Finally, the document includes information about the national mortgage market based on the National Mortgage Database (NMDB), a program jointly funded and managed by FHFA and the Consumer Financial Protection Bureau, designed to provide a robust source of information about the U.S. mortgage market.

For all of the FHFA's data-populated spreadsheets, methodology, and further detail, the entire 2020 Housing Report can be accessed here.

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others.
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