$64 Million for Capital Magnet Fund
In the FY16 proposed budget submitted to Congress on February 2, 2015, the Obama Administration estimates that $120 million will be available for distribution for the NHTF and $64 million for the Capital Magnet Fund in early 2016.
Another $61 million is set aside for the Hope Reserve Fund, set up in the Housing and Economic Act of 2008 (HERA) to cover potential losses from the Hope for Homeowners program, also created in HERA.
No additional loans can be made under the Hope for Homeowners program and the program has had minimal losses to date. It is expected that payments to the Hope Reserve Fund will be minimal or non-existent in subsequent years.
The total for the three funds equals $245 million. This is the Administration’s estimate of the value of 4.2 basis points of Fannie Mae and Freddie Mac’s volume of business in 2015.
As directed by the Federal Housing Finance Agency last December, Fannie and Freddie are to set aside 4.2 basis points of their 2015 volume of business and make it available 60 days into 2016 for distribution to HUD for distribution of #NHTF funds to the states and to Treasury for the CMF.
The Administration’s figures are just estimates and the final numbers will not be known until early in 2016.
Click here for the description of the #NHTF in the budget.