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America’s Community Bankers has urged the Department of Housing and Urban Development to finalize affordable housing goals for Fannie Mae and Freddie Mac at the levels proposed.

"While we support the proposed level of the goals, past performance suggests that even higher quantitative goals could have been proposed," ACB said in a comment letter. HUD’s proposed low- and moderate-income housing goal is purchase of 48 percent of the units financed for 2000 and 50 percent in 2001-2003. The proposed goals are "ambitious but achievable," ACB said.

"Though successful in increasing the availability of affordable housing and housing finance in many areas and to many populations segments, there still are significant underserved areas and population groups," ACB said.

"Adoption of the revised goals will create incentives for the GSEs [government sponsored enterprises] to devote their considerable human and financial resources to meeting new, higher performance standards goals," ACB said.

"Advances in risk management, innovative loan products and aggressive borrower counseling represent initiatives taken by the industry," ACB said. "These initiatives certainly can be replicated by the GSEs working to meet the proposed affordable housing goals."

The 13-page comment letter is linked.