NAR Submits Comments on FHFA’s Proposed Affordable Housing Goals
On July 26, 2012, NAR President Moe Veissi submitted comments to the Federal Housing Finance Agency (FHFA, the conservator of Fannie Mae and Freddie Mac, the GSEs) on the proposed GSE affordable housing goals for 2012-2014.
In the comments, NAR recommends that FHFA reconsider the extent to which it is necessary to reduce the goals from the 2010-2011 levels. Specifically, NAR believes the housing market recovery is stronger than data FHFA relies upon, and recommends that FHFA reconsider the proposal to lower the single family housing goals and reassess the other goals as well. NAR has traditionally supported ambitious, but reasonable, affordable housing goals that were consistent with sustainable homeownership and recognize the importance of first time homeowners in the housing market.
NAR continues to support flexibility for the GSEs to comply with the goals since it is not reasonable to hold the GSEs to the benchmarks if market conditions significantly erode, making achieving the goals with sustainable mortgages impossible.