Regulatory barriers at the state and local level have an enormous impact on the development of affordable rental housing. Government action— through land use regulation, building codes, and occupancy Illinois borrow money online standards—is a major contributor to high housing costs.
Since the early 1990s, the multifamily mortgage market has become more closely interconnected with global capital markets, although not to the same degree as the single-family mortgage market. Loans on multifamily properties are still viewed as riskier by some than mortgages on single-family — properties. Property values, vacancy rates, and market rents of multifamily properties appear to be highly correlated with local job market conditions, creating greater sensitivity in loan performance to Illinois borrow money online economic conditions than may be experienced for single- family mortgages. There is a need for an ongoing GSE presence in the multifamily secondary market, both to increase liquidity and to further affordable housing efforts. The potential for an increased GSE presence is enhanced by the fact that an increasing proportion of multifamily mortgages are now originated in accordance with secondary Illinois borrow money online market standards. Small multifamily properties, and multifamily properties with significant rehabilitation needs, have historically experienced difficulty gaining access to mortgage financing, and the flow of capital into multifamily housing for seniors has been historically characterized by volatility. The GSEs can play a role in promoting liquidity for multifamily mortgages and increasing the availability of long-term, fixed rate financing for these properties.
The year 2001 was the first year under the higher levels of the Housing Goals established in the Housing Goals 2000 final rule.
Both GSEs met all three Housing Goals in 2001 and 2002. Their performance is discussed further in a later section of this preamble. Because homeownership opportunities are integrally tied to the ready availability of affordable home purchase 24236 loans, the main findings from that analysis are provided below: e Both Fannie Mae and Freddie Mac have increased their purchases of affordable loans since the Housing Goals Illinois borrow money online were put into effect, as indicated by the increasing share of their business going to the three Goals-qualifying categories. During that period, special affordable loans accounted for 14. Between 1999 and 2002, underserved area loans accounted for 24. Evaluating their activity relative to the market depends, to some extent, on the way in which GSE activity is measured.
For example, during 2001 and 2002, loans for special affordable borrowers accounted for 15.
For example, during 2001 and 2002, loans financing properties in underserved areas accounted for 24. Both Fannie Mae and Freddie Mac lag the market in funding first-time homebuyers, and by a rather wide margin. Considering all mortgage originations (both government and conventional) between 1999 and 2001, it is estimated Federal. Considering conventional conforming originations during the same time period, it is estimated that the GSEs purchased only 31 percent of loans for African-American and Hispanic first- time homebuyers, or about one-half of their share (57 percent) of all home purchase loans in that market. Size of the Mortgage Market That Qualifies for the Housing Goals The Department estimates the size of the conventional, conforming market for loans that would qualify under each Housing Goal category. The market estimates (which reflect 2000 Census data and geography) are as follows: e 51-57 percent for the Low- and Moderate-Income Housing Goal e 24-28 percent for the Special Affordable Housing Goal e 35-40 percent for the Underserved Areas Housing Goal (based on 2000 Census geography). The estimates, expressed as ranges, allow for economic and market affordability conditions that are more adverse than recent conditions. The market estimates are based on several mortgage market databases such as Home Mortgage Disclosure Act (HMDA) and Illinois borrow money online American Housing Survey data. The GSEs have substantial room for growth in serving the affordable housing mortgage market. In contrast, GSE purchases comprised 42 percent of the low- and moderate- income market, 41 percent of the underserved areas market, and a still smaller 35 percent of the special affordable market. Thus, 58-65 percent of the Goals-qualifying markets have not yet been touched by the GSEs.
Obviously, there is room for the GSEs to increase their presence in the single-family rental and multifamily rental markets. This affects the market percentages for all three Housing Goals, as well as the figures on area median incomes and minority percentage figures that will be used to measure GSE performance on the Housing Goals beginning in 2005. For example, expressing the Underserved Areas Housing Goal in terms of 2000 Census data adds approximately 5 percentage points to the Housing Goal and market levels, compared with analysis using 1990 Census data with Metropolitan Statistical Areas as defined prior to 2000.
The Department did not extend these adjustments beyond 2003. Second, it is evident from this table that the proposed initial new level for the Special Affordable Housing Goal (22. The higher Housing Goals are intended to move the GSEs closer to or within the market range for 2005 and to the upper end of the market range projection by 2008. As shown in Figure 1, GSE mortgage purchases represented only 27 percent of single-family rental units financed between 1999 and 2002, and only 30 percent of multifamily units financed during that time period—both figures are much lower than their 57 percent market share for single-family owner-occupied properties. Corresponding figures for the Special Affordable Housing Goal are approximately 60 percent of rental units and 16. Figure 2 Units in the Conventional Conforming Mortgage Market Compared to GSE Purchases by Property Type, 1999-2002 Single-Family Owner Units Single-Family Rental! From the analysis in Appendices A-D, it is clear that the GSEs are able to improve their performance and lead the primary market in financing Housing Goals- qualifying home purchase mortgages. As discussed in Appendix A, there are a wide variety of quantitative and qualitative indicators that demonstrate that the GSEs have ample, indeed robust, financial strength to improve their affordable lending performance. This financial strength provides the GSEs with the resources to lead the industry in making mortgage financing available for families and neighborhoods targeted by the Housing Goals.