In August 2002 Fannie Mae announced a five-year, $23 billion investment plan for the Dallas/Fort Worth Metroplex called ?the American Dream Commitment.? Fannie Mae promised it would provide affordable homeownership and rental opportunities for more than 230,000 area families.
Fannie Mae made this commitment in order to comply with the
Congressional mandate declaring that Fannie Mae and other
GSEs have an ?affirmative obligation to facilitate the
financing of affordable housing for low and moderate-income
families? and that they must ?lead the industry in making
mortgage credit available for low- and moderate-income
The Fannie Mae announcement garnered enormous publicity.
When a reporter from the Dallas Morning News asked TxLIHIS
if Fannie Mae’s similar past committments had
actually produced the promised results we had to confess
that we were not sure. We decided to look into it.
We discovered that there was no independent evaluation of
Fannie Mae’s lending record to minority homebuyers in
Texas. So, we decided to conduct the research ourselves.
Over the next year, we studied the impact of Fannie Mae on
the single-family home loan market for minorities and
underserved communities in Dallas and Fort Worth.
Our research results, which are summarized here, were
surprising. Far from being a leader in serving minorities
and low and moderate income borrowers, we found that the
majority of the single family mortgage loans Fannie Mae
purchased are directed at White and upper income families.
While we do not believe, as some have suggested, that
Fannie Mae should be abolished, we do think it should be
reformed in order to better serve the minority and
low-income borrowers it is mandated to assist.
The summary of the report is available. The
complete report with color maps and charts is
available for download as an Adobe Acrobat PDF file
(acrobat viewer required) and, if you have a high
speed internet connection, you can watch a 15 minute
video summary of the report (Quicktime