Fannie Mae 2008 Annual Report Download - page 41

industries, and at least one person from an organization representing consumer or community interests or one
person who has demonstrated a career commitment to the provision of housing for low-income households.
Upon our entry into conservatorship, FHFA succeeded to all the rights and powers of our Board of Directors.
FHFA reconstituted our Board on November 24, 2008 and appointed a Board of Directors with specific
delegated authorities that became effective on December 19, 2008, as described above “Conservatorship—
Management of the Company Under Conservatorship.”
Exam Authority and Expenses. FHFA, in its role as our regulator, has agency examination authority, and we
are required to submit to FHFA annual and quarterly reports on our financial condition and results of
operations. FHFA is authorized to levy annual assessments on us, Freddie Mac and the FHLBs, to the extent
authorized by Congress, to cover FHFA’s reasonable expenses.
Housing Goals and Subgoals
Since 1993, we have been subject to housing goals, which have been set as a percentage of the total number
of dwelling units underlying our total mortgage purchases, and have been intended to expand housing
opportunities (1) for low- and moderate-income families, (2) in HUD-defined underserved areas, including
central cities and rural areas, and (3) for low-income families in low-income areas and for very low-income
families, which is referred to as “special affordable housing.” In addition, in 2004, HUD established three
home purchase subgoals that have been expressed as percentages of the total number of mortgages we
purchase that finance the purchase of single-family, owner-occupied properties located in metropolitan areas.
Since 1995, we have also been required to meet a subgoal for multifamily special affordable housing that is
expressed as a dollar amount. The Regulatory Reform Act changed the structure of the housing goals
beginning in 2010, and gave FHFA the authority to set and enforce the housing goals.
We report our progress toward achieving our housing goals to FHFA on a quarterly basis, and we are required
to submit a report to FHFA and Congress on our performance in meeting our housing goals on an annual
basis.
The following table compares our performance against the housing goals and subgoals for 2008, 2007 and
2006. The 2006 and 2007 performance results are final results that were validated by HUD and FHFA,
respectively. The 2008 performance results are preliminary results that we have not finalized and that also
have not yet been validated by FHFA.
Housing Goals and Subgoals Performance
Result
(1)
Goal Result
(1)
Goal Result
(1)
Goal
2008 2007 2006
Housing goals:
(2)
Low- and moderate-income housing . . . . . . . . . . . . . . . . . 53.6% 56.0% 55.5% 55.0% 56.9% 53.0%
Underserved areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.4 39.0 43.4 38.0 43.6 38.0
Special affordable housing . . . . . . . . . . . . . . . . . . . . . . . . 26.0 27.0 26.8 25.0 27.8 23.0
Housing subgoals:
Home purchase subgoals:
(3)
Low- and moderate-income housing. . . . . . . . . . . . . . . . 38.9% 47.0% 42.1% 47.0% 46.9% 46.0%
Underserved areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.4 34.0 33.4 33.0 34.5 33.0
Special affordable housing . . . . . . . . . . . . . . . . . . . . . . 13.6 18.0 15.5 18.0 18.0 17.0
Multifamily special affordable housing subgoal
($ in billions)
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13.42 $5.49 $19.84 $5.49 $13.31 $5.49
(1)
Results presented for 2008 are preliminary and reflect our best estimates as of the date of this report. These results
may differ from the results we report in our Annual Housing Activities Report for 2008. Some results differ from the
results we reported in our Annual Housing Activities Reports for 2007 and 2006.
(2)
Goals are expressed as a percentage of the total number of dwelling units financed by eligible mortgage loan
purchases during the period.
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