MBA Urges Caution in Raising AH Goals

The Mortgage Bankers Association is urging the Department of Housing and Urban Development HUD to be more cautious in raising the affordable housing goals for Fannie Mae and Freddie Mac."We believe that HUD has sized the market incorrectly and that has led to a miscalculation of the goals," MBA's top lobbyist, Kurt Pfotenhauer, told MortgageWire. The MBA argues that HUD should only raise the goal for low- and moderate-income mortgage loans from 50% to 51%. HUD has proposed to raise the AH goals up to 57% by 2008. The MBA, which conducted its own analysis of the mortgage market, concluded that setting the goals that high would create market distortions that could damage the Federal Housing Administration loan program and multifamily market. The National Association of Realtors and the National Association of Home Builders are also urging HUD to set the goals in the lower 50s. "NAR believes that HUD's decision to set the goals at the higher end of the estimated market is ill-advised," NAR president Walt McDonald says in a comment letter. The comment period on the AH goals ends July 16.