New HUD Regulations To Provide $2.4 Trillion For Affordable Housing

The historic federal regulations by HUD raises the required percentage of mortgage loans for low- andmoderate-income families that finance companies Fannie Mae and Freddie Mac must buy annuallyfrom the current 42 percent of their total purchases to a new high of 50 percent - a 19 percentincrease. In addition to helping low- and moderate-income families, the new federal regulations will also increasethe affordable housing goals for loans made to underserved areas and will raise the goal for mortgagesto benefit families with very low incomes. A special affordable housing goal for families with very lowincomes and low incomes (those with less than 60 percent and 80 percent of area median) jumps fromthe current 14 percent to 20 percent (a 43 percent increase). In addition, a geographically targetedgoal for underserved areas (central cities, rural areas, and underserved communities based on incomeand minority concentration) increases from 24 percent to 31 percent (a 29 percent increase).

Thanks to Abhijeet Chavan