The Federal Housing Finance Agency (FHFA) has published its proposed 2022-2024 Underserved Markets Plans [1], submitted by Fannie Mae and Freddie Mac under the Duty to Serve (DTS) program. The proposed Plans cover the period from January 1, 2022-December 31, 2024.
The Housing and Economic Recovery Act of 2008 [2] amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 [3] to establish a duty for the government-sponsored enterprises (GSEs) to serve three specified underserved markets–manufactured housing, affordable housing preservation, and rural housing–by advancing the liquidity of mortgage investments, and improving the distribution of investment capital available to facilitate a secondary market for residential financing for very low-, low-, and moderate-income families in those underserved markets.
The DTS regulation, which implements the statutory provisions, requires the GSEs to prepare Plans detailing the specific objectives and activities they plan to implement to fulfill the DTS mandate. This request seeks public input on activities and objectives proposed by the GSEs to be implemented under their 2022-2024 Plans. The DTS regulation requires FHFA to post proposed Plans on its website as soon as practical after submission to FHFA for review, with public input pursuant to the timeframe and procedures established by FHFA.
Click here [4] to view Fannie Mae's "Duty to Serve Underserved Markets Plan for the Manufactured Housing, Affordable Housing Preservation and Rural Housing Markets,” and click here [5] to view Freddie Mac’s “Duty to Serve Manufactured Housing, Rural Housing and Affordable Housing Preservation."
FHFA will accept public input on the proposed Plans during a 60-day public input period beginning May 18. The public can review the request for input and submit comments through links on the DTS webpage. FHFA also plans to hold three listening sessions [6] to review the proposed Plans on July 12, 13, and 14. The three virtual Listening Sessions will each focus on a different underserved market:
- Session 1 will focus on Rural Housing: July 12, 2021
- Session 2 will focus on Affordable Housing Preservation: July 13, 2021
- Session 3 will focus on Manufactured Housing: July 14, 2021
Each session [6] will begin at 1:00 p.m. EDT and conclude by 4:00 p.m. EDT
The activities outlined by the GSEs to achieve proposed Plan objectives will remain subject to FHFA review and approval to ensure compliance with the GSEs' Charter Acts, safety and soundness measures, and other conservatorship and regulatory requirements.