“Changes are needed so as not to impair the ability of the government-sponsored enterprises to meet their statutory mission of providing liquidity to the broader finance market,” said Howard. “The basic problem is that HUD has overestimated the amount of financing that could meet the goals and has not appropriately factored in the potential for future volatility in the mortgage markets.” Suggesting corrections to these shortcomings, NAHB called on HUD to incorporate updated data into its market estimates, to eliminate single-family refinancing transactions from its goals calculations and to set its goals at the midpoint of its market range estimates instead of the high end. Further, NAHB recommended ways to selectively strengthen the goals to more effectively address unmet housing finance needs in rural areas and communities where families earn less than 80% of the area median income — key market segments where the two financial institutions should be encouraged to increase their lending activities. NAHB also said that Fannie Mae and Freddie Mac should be encouraged to increase financing for the production of small multifamily rental properties. For NAHB’s full comments on HUD’s proposed affordable housing goals for Fannie Mae and Freddie Mac, click here. | 
