FHFA Seeks Public Input on Modifications to GSEs Duty to Serve Plans

Earlier this month the Federal Housing Finance Agency (FHFA) announced that it is seeking public input on proposed modifications to Fannie Mae and Freddie Mac’s (the Government Sponsored Enterprises, or GSEs) 2018-2020 Underserved Markets Plans under the Duty to Serve program. The Duty to Serve requirements, which were introduced in the Housing and Economic Recovery Act (HERA) of 2008, require the GSEs to facilitate a secondary mortgage market for low- and moderate-income families in three underserved markets: manufactured housing, affordable housing preservation, and rural housing. The GSEs are responsible for providing three-year plans that detail the specific objectives and activities for meeting their Duty to Serve requirements. The GSEs are allowed to request to modify their Duty to Serve plan at any time, but FHFA must provide approval for the modification before it can become part of a GSE’s plan. The GSEs have proposed changes to their 2018-2020 Duty to Serve Plans. FHFA has determined that public input would be helpful in considering some of the changes to Fannie Mae’s plan; Freddie Mac has submitted one modification that FHFA considers to be a modest correction, so the agency is not seeking public input on this proposal. Public input on the proposed modifications is due by Friday, November 2, 2018.

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