Freddie Mac 2004 Annual Report Download - page 23

Table 3 Ì Current and Future Housing Goals(1) for 2005, 2006, 2007 and 2008
Current and Future Housing Goals for 2005, 2006, 2007 and 2008
Housing Goals Levels
2005 Goal 2006 Goal 2007 Goal 2008 Goal
Low and moderate- income goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 52% 53% 55% 56%
Underserved areas goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 38 38 39
Special aÅordable goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 22 23 25 27
Multifamily special aÅordable volume target (dollars in
billions)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3.92 $3.92 $3.92 $3.92
Home Purchase Subgoals
2005 Goal 2006 Goal 2007 Goal 2008 Goal
Low and moderate- income goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 45% 46% 47% 47%
Underserved areas goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 32 33 33 34
Special aÅordable goal ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17 17 18 18
(1) An individual mortgage may qualify for more than one of the goals. Each of the goal percentages is determined independently and
cannot be aggregated to determine a percentage of total purchases that qualiÑes for these goals.
We believe that meeting these goals and subgoals will be challenging and there can be no assurance that
we will meet all of them in 2005 or beyond. We are making signiÑcant eÅorts to meet the new goals and
subgoals through adjustments to our mortgage sourcing and purchase strategies, including changes to our
underwriting guidelines and expanded and targeted initiatives to reach underserved populations.
Our strategies to meet the new goals and subgoals may result in the purchase of loans that oÅer lower
expected returns on our investment and are likely to increase our exposure to potential credit losses. Increasing
the concentration of our purchases of goal-eligible loans also may require us to forego other purchase
opportunities that we would expect to be more proÑtable. If our current eÅorts to meet the new goals and
subgoals prove to be insuÇcient, we may need to take additional steps that could lead to a signiÑcant reduction
of service to portions of the conventional conforming mortgage market, and also a reduction in our
proÑtability.
We view the purchase of mortgage loans beneÑting low- and moderate-income families and neighbor-
hoods as a principal part of our mission and business, and remain committed to fulÑlling the needs of these
borrowers and markets.
Fair Lending
Our mortgage purchase activities are subject to federal anti-discrimination laws. In addition, the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992, or the GSE Act, requires the Secretary of
HUD to adopt regulations prohibiting discriminatory practices in our mortgage purchase activities and
periodically to review and comment on our underwriting and appraisal guidelines for consistency with the Fair
Housing Act and the fair housing provisions of the GSE Act. The GSE Act also requires the Secretary of
HUD to direct that we:
‚ submit data to HUD to assist it in investigating whether a mortgage lender with which we do
business has failed to comply with the Fair Housing Act or the Equal Credit Opportunity Act; and
‚ undertake remedial actions, including suspension, probation, reprimand or settlement, against
lenders that are found to have engaged in discriminatory lending practices in violation of the Fair
Housing Act or Equal Credit Opportunity Act pursuant to a Ñnal adjudication and after
opportunity for an administrative hearing.
Freddie Mac
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