The Federal Housing Finance Agency (FHFA) today published Fannie Mae’s and Freddie Mac’s (the Enterprises) Underserved Markets Plans for 2018-2020 under the Duty to Serve program. The Plans become effective January 1, 2018.
FHFA issued a final rule on December 13, 2016 to implement the Duty to Serve provisions mandated by the Housing and Economic Recovery Act of 2008. The statute requires the Enterprises to serve three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing – by increasing the liquidity of mortgage financing, for very low-, low-, and moderate-income families.
The rule requires each Enterprise to adopt a three-year Underserved Markets Plan to fulfill this mandate. The activities proposed by the Enterprises to achieve the objectives in their Plans will continue to be subject to FHFA review and approval to ensure compliance with the Enterprises’ Charter Acts, safety and soundness, and other conservatorship and regulatory requirements.
“I congratulate Fannie Mae, Freddie Mac and FHFA staff for the work they have done to reach this significant milestone. The tough challenges associated with implementation are still ahead, however, to ensure that the Plans meet affordable housing needs in underserved markets around the country. FHFA looks forward to working with Fannie Mae, Freddie Mac and stakeholders to ensure that the Plans serve their statutory purposes and do so in a safe and sound manner,” said FHFA Director Melvin L Watt.
FHFA published the Plans today on its dedicated webpage, www.FHFA.gov/DTS.