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"We commend Secretary Jackson's decision to extend the comment period, which will give NAHB and other housing organizations the ability to work with the Bush Administration to establish more meaningful goals," Rayburn said.
NAHB will use the additional time to analyze the data and assumptions that underlie HUD's proposed goals and to formulate recommendations that would make the goals more effective in addressing unmet housing needs.
Stating that there are still too many underserved areas with critical housing needs, Rayburn highlighted key market segments where the two institutions should be encouraged to increase their lending activities.
“NAHB is asking HUD to reinstate the goals’ bonus point system,” said Rayburn. “The bonus point system is a targeted approach which proved to be effective in encouraging Fannie Mae and Freddie Mac to assist with small multifamily projects. To ensure that HUD continues to utilize this targeted approach, we will ask HUD to reinstate the bonus points for specific housing segments that require added attention, such as rural areas and other underserved borrowers.”
“Boosting the homeownership rate among previously underserved populations should be an essential focus for the two housing enterprises,” Rayburn added.
While many policy makers have suggested “reform” measures to curb the growth of Fannie Mae and Freddie Mac or even remove their status as housing government-sponsored enterprises (GSEs), the nation’s home builders believe these steps would have harmful effects and would prevent the GSEs from fulfilling their mission to finance affordable housing at the lowest possible cost to America’s households.
“A better approach would be for HUD to establish a more challenging goal system for the GSEs while enabling them to carry out their job of providing liquidity to the housing finance system,” said Rayburn. “We look forward to working with the Administration and others in the housing community on this important issue.”
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