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CoreLogic's Take on GSE Affordable Housing Goals
Monday, September 14, 2015
It has been almost a month since the Federal Housing Finance Agency (FHFA) announced the final goals for affordable housing for mortgages and rental activity financed by the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. CoreLogic has now released an evaluation of these goals. In an article on the company's Insights blog, Policy Research and Strategy Analyst Stuart Quinn says that the final goals, following over 100 public comments from market participants, did not fall far the the goals FHFA originally purposed.
A balance in these rules is important, Quinn says. Setting the bar too high; extending goals to
levels above where demand exists, can cause business concerns and impact safety
and soundness. Setting the goal too low
could lead to accusations that the GSEs are not upholding the intent of their
charters. "The end result could then
increase impediments to mortgage credit for deserving borrowers," Quinn says.
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