The government plans to sell an additional 600 multifamily and 65,000 single-family FHA mortgages in 1996 and 1997, according to President Clinton's new budget.
This represents a sharp increase from the total of 769 multi-family and 28,243 single-family mortgages sold since the current program was launched last year.
The budget also details the rapidly expanding activities of The Federal National Mortgage Association and Federal Home Loan Mortgage Corp., saying that "the changes in their role have exposed them to greater risk and have made the task of managing their risks more complex."
Both Fannie Mae and Freddie Mac will be charting even more treacherous waters in the future, in order to meet new affordable housing goals instituted by the Department of Housing and Urban Development.
Fannie and Freddie "may need to purchase some loans that pose greater than average credit risk or offer below-average returns," the budget document said.