The New GSE Affordable Housing Funds: The Housing Trust Fund and the Capital Magnet Fund (CRS Report for Congress)
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| Release Date |
Revised Nov. 25, 2008 |
| Report Number |
RL34158 |
| Report Type |
Report |
| Authors |
N. Eric Weiss, Government and Finance Division; Katie Jones, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Premium Sept. 5, 2007 (15 pages, $24.95)
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Summary:
One key feature of H.R. 1427, the Federal Housing Finance Reform Act of2007, which passed the House on May 24, 2007, is the requirement that Fannie Maeand Freddie Mac contribute to a new affordable housing fund for owner-occupied andrental housing. Based on the most recently available information (for 2005) onFannie Mae's and Freddie Mac's total portfolios, this could amount to approximately$482 million annually. Under S. 2391, the Government-Sponsored EnterpriseMission Improvement Act, Fannie Mae and Freddie Mac together would havecontributed $562 million to two similar funds in 2005.In 2007, the H.R. 1427 fund would have been divided between purchasingmortgages for homes in the areas affected by Hurricanes Katrina and Rita in 2005 inLouisiana and Mississippi, and REFCORP, which financed the savings and loanrestructuring in 1989. The fund would expire after five years. S. 2391 would devoteits first year's funding to assisting borrowers with subprime mortgages. After thefirst year, both bills would allocate funding according to a formula to be developedby the Secretary of the Department of Housing and Urban Development (HUD). Both bills would place the affordable housing fund into a national affordablehousing trust if one is created. One such bill is H.R. 2895, the National AffordableHousing Trust Fund Act of 2007. Another bill, H.R. 1852, the Expanding AmericanHomeownership Act of 2007, would require that savings from increased efficiencyin the Federal Housing Administration also go into the national trust fund.
