Weicher: GSEs No Threat to FHA

Federal Housing Administration officials are not concerned about losing market share if the new affordable housing goals push Fannie Mae and Freddie Mac further into the home-purchase loan market."I worry about FHA every day," FHA Commissioner John Weicher said. "But I don't really worry about the GSEs' coming in and taking our business." Under a proposal by the Department of Housing and Urban Development, the two government-sponsored enterprises would have to increase their acquisitions of low- and moderate-income loans and lead the market in terms of home-purchase loans. Several lender and housing groups have expressed concerns that the AH goals could undermine the FHA program, which is very effective in serving first-time and minority homebuyers. Mr. Weicher told reporters that concerns about the FHA's demise have been circulating for three decades, yet it remains financially strong and profitable.