Fannie Mae Exceeds HUD Housing Goals for 2003
February 20, 2004
More than 51 Percent of Financing Last Year Went to Low- and Moderate-Income Households
WASHINGTON, -- Fannie Mae (NYSE: FNM ) announced that, in an historic year for refinancing, it exceeded the Department of Housing and Urban Development's (HUD's) statutory goals in 2003, and also exceeded its corporate lending goals. Preliminary results show that last year, more than 51.8 percent of the company's business went to serve 4.5 million low- and moderate-income families, 32.0 percent served 2.8 million families living in underserved areas, and 20.9 percent served 1.8 million very low-income families and low-income families living in low-income areas.
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires Fannie Mae to meet annual percent-of-business housing goals established by HUD for three categories: low- and moderate-income, underserved, and special affordable.
"Fannie Mae exceeded our affordable housing goals because minority and lower-income Americans are the core of our mission-driven business," said Franklin D. Raines, Chairman and Chief Executive Officer of Fannie Mae. "By joining with our partners to bring our low-cost, consumer-friendly home financing to people and places typically overlooked, Fannie Mae continues to devote over half of our total business to lower-income families."
Fannie Mae also set a voluntary goal of leading the mortgage market in serving minorities, and last year financing for minority families increased to record levels. In 2003, the company financed over $246 billion in loans to more than 1.64 million minority families. This was an 81 percent increase in financing over the previous record set in 2002, and an increase of 67 percent in the number of families served.
The company financed nearly $44 billion in loans to nearly 350,000 African American families last year, a 82 percent increase in financing and 64 percent increase in families served over 2002. It financed nearly $91 billion to over 656,000 Hispanic families in 2003, a 79 percent increase in financing over the previous year and a 66 percent increase in the number of families served.
While Fannie Mae's lending overall in 2003 increased by 205 percent when compared to 1993, the company's service to African Americans increased by 434 percent, to Hispanics by 470 percent, and to minorities overall by 363 percent in that same timeframe.
For 2003, Fannie Mae exceeded the regulatory goals in each category. Preliminary results for Fannie Mae's 2003 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 51.8 percent of the units the company financed compared with a HUD goal of 50 percent for the year;
- underserved areas accounted for over 32.0 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 20.9 percent of total units financed in 2003, exceeding the HUD goal of 20 percent. Fannie Mae delivered $11.6 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: 68.3 percent went to those with incomes at or below 80 percent of their area's median income; 34.9 percent went to those with incomes between 60 and 80 percent of the median; and 33.4 percent went to those with incomes at or below 60 percent of the median. Source: Fannie Mae