The Department of Housing and Urban Development has verified that Fannie Mae and Freddie Mac exceeded their affordable housing goals in 2005, even though Fannie missed one of its subgoals by a whisker."Both government-sponsored enterprises met the housing goals for 2005," HUD said. While Freddie achieved all of three home purchase subgoals, HUD's analysis "confirmed that Fannie Mae did not meet the low- and moderate-income home purchase subgoal," HUD said. Earlier this year, Fannie disclosed that it missed that subgoal. HUD created the three subgoals in order to exclude purchases of refinanced loans and encourage more GSE support for home purchase loans. The subgoal for low- and moderate-income home purchase loans was 45% in 2005, and Fannie came in at 44.59%. For 2006, the low-mod subgoal is 46%.

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