More than 51.5 Percent of Fannie Mae's 2001 Financing Went to Low- and Moderate-Income Households
January 25, 2002
Company Exceeded All Goals for the 8th Consecutive Year
WASHINGTON, DC ? Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced that it exceeded all of its statutory and corporate lending goals in 2001. Last year, more than 51.5 percent of the company's business served low- and moderate-income families; 32.5 percent served underserved areas, and 21.6 percent served special affordable housing.
In addition, Fannie Mae's assistance to minority families increased to record levels. In 2001, the company financed over $87 billion in loans to 676,000 minority families, which was 86 percent more than the previous record set in 1998. The company financed nearly $16.5 billion in loans to 151,000 African American families in 2001, an 88 percent increase over our previous record set in 1998. Fannie Mae is the nation's largest private provider of mortgage credit to minorities.
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires Fannie Mae to meet annual percent-of-business housing goals established by the U.S. Department of Housing and Urban Development (HUD). In 2001, HUD increased Fannie Mae's goals for each category, raising the low- and moderate-income goal from 42 percent to 50 percent; the underserved goal from 24 percent to 31 percent; the special affordable goal from 14 percent to 20 percent; and the multifamily minimum in special affordable financing from $1.29 billion to $2.85 billion. Fannie Mae exceeded the goals in each category.
"In 2001, Fannie Mae seized on housing's best year in history to bring affordable housing to lower-income families, minorities, and other Americans who've been overlooked, underserved, and overcharged," said Franklin D. Raines, Chairman and CEO of Fannie Mae.
"Through its focused, concerted strategies to provide low-cost, conventional financing to lower-income families and underserved areas, Fannie Mae not only met, but also surpassed HUD's new and expanded affordable housing requirements for the company in all categories, as well as dramatically increasing its lending to minorities," Raines said.
Preliminary information for Fannie Mae's 2001 business activity shows that:
- low- and moderate-income households (those with incomes less than or equal to 100 percent of an area's median income) represented over 51.5 percent of the units the company financed compared with a HUD goal of 50 percent for the year;
- underserved areas accounted for over 32.5 percent of the units that Fannie Mae financed; the company's HUD goal was 31 percent for the year; and
- special affordable housing (low- and very low-income households living in both single-family and multifamily residences) accounted for 21.6 percent of total units financed in 2001, exceeding the goal of 20 percent. Fannie Mae delivered $7.4 billion in multifamily special affordable financing against a HUD goal of $2.85 billion.
Fannie Mae further reported that of the low- and moderate-income units it financed last year: 70 percent went to those with incomes at or below 80 percent of their area's median income; 36 percent went to those with incomes between 60 and 80 percent of the median; and 34 percent went to those with incomes at or below 60 percent of the median.
Source: Fannie Mae