The Federal Housing Finance Agency [1] (FHFA) has published the 2022-2024 Underserved Markets Plans [2] for Fannie Mae and Freddie Mac under the Duty to Serve (DTS) Program.
The DTS Plans demonstrate a strengthened commitment to serving manufactured housing, affordable housing preservation, and rural housing. The targets and strategies within the DTS Plans build on lessons learned, and progress made during the first four years of the DTS program.
“Providing sustainable liquidity for affordable housing preservation, rural housing, and manufactured housing in a safe and sound manner is an integral part of the Enterprises’ responsibility to serve underserved markets,” said FHFA Acting Director Sandra L. Thompson. “The additional activities and objectives to be implemented under these Plans are important steps toward the Enterprises fulfilling their Duty to Serve mandate over the coming years.”
In May 2021, the Enterprises submitted proposed Duty to Serve Plans that FHFA evaluated against Agency priorities and the DTS regulation. FHFA determined that none of the Enterprises’ initial Plans met the DTS Non-Objection standard. After further revisions and evaluation, FHFA has determined that the Enterprises’ latest proposed Plans now meet the Non-Objection standard.
"Underserved Markets" are markets that have fewer goods or services available than there should be. In this case, the current housing supply, which has diminished throughout and because of the pandemic, among other factors such as rising mortgage rates.
Manufactured Housing markets have provided an alternative for consumers, offering renters and homebuyers flexibility in terms of affordability.
Manufactured housing provides affordable housing [2] to an estimated 6.7 million households nationwide, where approximately 4.8 million are owner-occupied, and 1.9 million are renter-occupied homes.
Manufactured housing makes up 6.1% of the nation’s housing stock, but that share is higher in rural areas. While site-built single-family homes represent about 81% of housing stock in rural areas, manufactured housing constitutes approximately 13%. Apartments are a distant third, representing only about 5% of stock in rural areas.
The activities outlined by the Enterprises to achieve their DTS plan objectives remain subject to FHFA review and approval to ensure compliance with the Enterprises’ Charter Acts, safety and soundness measures, and other conservatorship and regulatory requirements.