FHFA Releases Final Duty to Serve Plans

On April 27, the Federal Housing Finance Agency (FHFA) published the final approved Duty to Serve (DTS) Underserved Markets Plans for Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises, or GSEs. The GSEs are required to prepare and submit to FHFA three-year underserved markets plans that specify activities and target performance levels to address longstanding needs in the manufactured housing, rural housing, and affordable housing preservation markets. The newly approved plans are updated versions of the plans originally submitted in May 2021, which were sent back to the GSEs for failing to meet FHFA’s standards for approval. The updated DTS plans just released were determined to meet standards and are now in force. (The plans are deemed to be in effect retroactively to the beginning of 2022.)

A number of changes in the final plans reflect the comments from Enterprise and the Underserved Mortgage Markets Coalition, including the need for higher targets for many activities and a willingness to further revise targets as additional funds for affordable housing become available. Among other new activities, Fannie Mae’s plan includes a voucher acceptance pilot, equity investments in rural CDFIs, and support for rural small and medium-sized multifamily properties; Freddie Mac’s updated plan commits to strengthened support for small and medium-sized multifamily properties, new preservation rehab loan products, and a personal loan product for manufactured housing. A press release by FHFA notes that the approved plans demonstrate a strengthened commitment to serving manufactured housing, affordable housing preservation, and rural housing.

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