HUD Releases Working Papers on GSEs, Funding of Affordable Loan

July 17, 2007

WASHINGTON - The Department of Housing and Urban Development has released of two research working papers that analyze the performance of Fannie Mae and Freddie Mac, two housing government sponsored enterprises or GSEs, in funding loans that serve affordable housing. The papers, which were prepared by HUD's Office of Policy Development and Research, are based on loan level mortgage data that the GSEs are required to provide to HUD annually.

Both papers document some recent improvements made by Fannie Mae and Freddie Mac under HUD's Affordable Housing Goals in purchasing home loans for lower-income families and their neighborhoods.

Working paper number HF-017,"Goal Performance and Characteristics of Mortgages Purchased by Fannie Mae and Freddie Mac, 2001-2005," examines the loan and borrower characteristics of the mortgages purchased by the GSEs, including major property type, borrower income and race, and type of neighborhood.

Working Paper number HF-018, "The GSEs' Funding of Affordable Loans: A 2004-05 Update," compares the borrower and neighborhood characteristics of single-family mortgages purchased by Fannie Mae and Freddie Mac between 1999 and 2005 with characteristics of loans originated by the primary market during the same period. The study updates HUD's earlier analyses to include the GSEs' performance during the 2004 - 2005 time period.