An Analysis of the Effects of the GSE
Affordable Goals on Low- and Moderate-Income Families (May 2002, 128 p.)
Since 1993 Fannie Mae and Freddie Mac, the two large government sponsored
enterprises (GSEs) that provide a secondary market for conventional home mortgages,
have been subject to quantitative goals for the portion of their business that represents
mortgages on housing for lower income families and families in underserved areas. The
GSEs have more-or-less steadily increased their performance under the goals.
Nevertheless, questions have been raised concerning the ultimate effects of the goals on
low- and moderate-income families and underserved neighborhoods. This study seeks to
address such questions by providing a conceptual framework for the impacts of the goals
and through statistical analysis.
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