Fannie Mae Exceeds HUD Housing Goals for 9th Consecutive Year; More than 51.6 Percent of Company's 2002 Financing Went to Low- and Moderate-Income Households.
WASHINGTON--(BUSINESS WIRE)--Feb. 6, 2003
Fannie Mae (NYSE:FNM), the nation's largest source of financing for home mortgages, today announced that for the 9th consecutive year it exceeded all of the Department of Housing and Urban Development's (HUD's) statutory goals in 2002, and also exceeded its corporate lending goals.
Preliminary results show that last year, more than 51.6 percent of the company's business served low- and moderate-income families; 32.7 percent served underserved areas, and 21.3 percent served special affordable housing.
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 requires Fannie Mae to meet annual percent-of-business housing goals established by HUD for three categories: low- and moderate-income, underserved, and special affordable.
Fannie Mae also set a voluntary goal of leading the mortgage market in serving minorities, and last year financing for minority families increased to record levels. In 2002, the company financed over $135.7 billion in loans to more than 977,000 minority families.
This was a 52.6 percent increase in financing over the previous record set in 2001, and an increase of 43.8 percent in the number of families served.
The company financed just under $24 billion in loans to nearly 210,000 African American families last year, a 43.8 percent increase in financing and 37.2 percent increase in families served over 2001. It financed more than $50 billion to over 392,000 Hispanic families in 2002, a 54.9 percent increase in financing over the previous year and a 43.8 percent increase in the number of families served.
"We have helped our lender partners reach into new communities, develop and market new products, and we've reached out to new partners to make mortgage finance more accessible to more households than ever before," said Franklin D. Raines, Chairman and CEO of Fannie Mae.
"Our commitment to serve minority Americans has transformed Fannie Mae, our lender partners, and the markets we serve," said Raines. "For instance, while our lending overall in 2002 had increased by 93 percent over 1993, our service to African Americans increased by 220 percent, to Hispanics by 241 percent, and to minorities overall by 175 percent."
For 2002, Fannie Mae exceeded the regulatory goals in each category.
Preliminary results for Fannie Mae's 2002 business activity shows that:
-- low- and moderate-income households (those with incomes less than or equal to 100 percent of an area's median income) represented over 51.6 percent of the units the company financed compared with a HUD goal of 50 percent for the year; -- underserved areas accounted for over 32.7 percent of the units that Fannie Mae financed; the company's HUD goal was 31 percent for the year; and -- special affordable housing (low- and very low-income households living in both single-family and multifamily residences) accounted for 21.3 percent of total units financed in 2002, exceeding the HUD goal of 20 percent. Fannie Mae delivered $7.2 billion in multifamily special affordable financing against a HUD goal of $2.85 billion.
Fannie Mae further reported that of the low- and moderate-income units it financed last year: 69.4 percent went to those with incomes at or below 80 percent of their area's median income; 34.9 percent went to those with incomes between 60 and 80 percent of the median; and 34.5 percent went to those with incomes at or below 60 percent of the median.
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.
Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided $4.5 trillion of mortgage financing for more than 49 million families.
More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.
Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."