Author:
Jay Schultz
In establishing benchmarks for the 2012 and 2014 single-family mortgage housing goals for Fannie Mae and Freddie Mac (the Enterprises), the Federal Housing Finance Agency (FHFA) is required to measure the size of the mortgage market. This paper documents the methodology used to establish the market size for the Low-Income Borrower Home Purchase Housing Goal (share of borrowers with incomes no greater than 80 percent of the area median income (AMI)), the Very Low-Income Borrower Home Purchase Housing Goal (share of borrowers with incomes no greater than 50 percent of AMI), the Low-Income Area Home Purchase Housing Goal (share of borrowers living in low-income areas (where census tract median income is no greater than 80 percent of AMI) and high minority areas), and the Low-Income Borrower Refinance Housing Goal (share of borrowers with incomes no greater than 80 percent of AMI).