However, should the Democrats win the White House, efforts to restrain GSE growth via higher AHGs or stringent oversight are more likely to come to a halt.
HUD Secretary Alphonso Jackson has been particularly outspoken on the AHGs and the GSEs' performance or lack thereof.
HUD's investigation includes determining whether the transactions granted only temporary possession and, if so, whether that should qualify as meeting the AHGs.
HUD Secretary Alphonso Jackson has been highly critical of Fannie's and Freddie's performance under the AHGs, and indicated in press interviews that HUD will exclude large, year-end transactions from qualifying toward the AHGs.
* HUD issued a proposed rule on May 3, 2004, to reset the government-sponsored enterprises' (GSEs') affordable-housing goals (AHG) for 2005 through 2008.
That's because the AHG levels are predicated on HUD's estimate of the mortgage market, the percentage of loans in that market that qualify for each affordable goal and the GSEs' share of the "affordable" piece of the market.
Notably, both corporations believe the current AHG is too stringent and, increasingly, difficult to meet.
It is very difficult in 2003 to keep our numbers where we want them to be" in trying to meet the AHG, he says.
HUD has published and/or funded nearly 20 reports monitoring and analyzing the GSEs' performance under the AHG. Some might conclude that this intense focus and the reports' subsequent findings have built a strong case for using the AHG to more specifically target where regulators want the GSEs to focus.
In its most recent analysis, from April 2002--The GSEs' Funding of Affordable Loans: A 2000 Update--HUD assessed the GSEs' AHG performance in 1999 and 2000.
There is every indication, however, that specific requirements on minority lending and at least some restriction on high down-payment loans will be a key focus of HUD's next AHG rule-making.