In order to meet their new affordable housing goals Fannie Mae and Freddie Mac need to be more "innovative or aggressive" in purchasing low- to moderate-income mortgages, according to the Bush Administration's new fiscal budget.The White House suggests Fannie and Freddie should use a, "larger portion of the subsidy they enjoy as a result of their Government ties to support purchases of goals-qualifying loans." According to figures compiled by the Department of Housing and Urban Development, between 2001 and 2003 25.7% of Fannie's loan purchases funded first-time minority home buyers compared to 26.1% for Freddie Mac, and 39.1% for the overall market. The White House believes that Fannie and Freddie, with "their large subsidy" and "their substantial market share" should lead the market in affordable housing loans.

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