HUD Says Housing GSEs Fund too Few Minority Loans

The Bush administration took its opening shots against mortgage funders Fannie Mae and Freddie Mac this week, with a senior housing official on Thursday saying the government-sponsored companies fund too few mortgage for first-time, minority home buyers.

HUD Assistant Secretary John Weicher, in testimony to the U.S. Senate Banking Committee, said the government-sponsored enterprises accounted for an average 25.9 percent of loans to first-time minority home buyer in 2001 to 2003.

“The GSEs do a rather poor job of serving first time home buyers, particularly minority first time home buyer,” Weichert said.

“The GSEs have a responsibility to promote equal access to capital for minorities and others who are seeking their first homes and to demonstrate the benefits of such lending to industry and borrowers alike,” he added.

Weicher’s testimony outlined HUD’s most recent rules on the housing GSEs that laid out affordable housing goals for 2005 through 2008. HUD is the home of the companies’ regulator.

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