Freddie: Affordable Housing Goal Becoming Burdensome

Freddie Mac is facing a "massive increase" in its affordable goals in 2004 and in 2005, according to Freddie executive vice president and chief operating officer Paul Peterson.Mr. Peterson said the low-income and moderate-income goals went up six percentage points in 2004 because certain bonus points and a multiplier expired at the end of 2003. Meanwhile, the Department of Housing and Urban Development has issued a proposed rule to increase the goals in 2005. "The [HUD] proposal is adding a massive increase on top of a massive increase," Mr. Peterson told reporters at the Mortgage Bankers Association's secondary market conference. The Freddie Mac COO said he is confident Freddie will be able to meet the goals for 2004. However, the company is not sure the proposed 2005 goals are "realistic." Freddie is still analyzing the proposal, he said.