These underserved markets are manufactured housing, affordable housing preservation and rural housing.
Released Monday, both Fannie Mae
and Freddie Mac
Duty To Serve (DTS) Underserved Markets Plans focus on conducting research to better understand the issues of the underserved markets; evaluating and enhancing existing programs and products as well as the creation of a pilot program for chattel loans; fostering new partnerships and improving existing ones; and staying committed to their duty of making mortgage accessible to Americans.
The plans have a three-year term, and if both are approved by the Federal Housing Finance Agency by Dec. 1, they will go into effect on Jan. 1.
“We recognize that there are no easy solutions to the tough and often long-standing challenges that characterize underserved markets,” said Jeffery Hayward, executive vice president and head of multifamily at Fannie Mae. “It will take research, education and innovative partnerships to make housing more affordable in all markets.”
"Our plan includes increased loan purchases in these underserved markets, new offerings, market research, increased homebuyer education, community engagement and local outreach,” said Danny Gardner, vice president of affordable lending and access at Freddie Mac. “We intend to work with our customers and the many dedicated organizations that are deeply knowledgeable about these markets at the local, regional and national levels."
Public opinion is requested for both plans. Public input for FHFA’s proposed evaluation guidance
is due on June 7, while the last day for public opinion for the Fannie and Freddie Underserved Markets Plans
is on July 10.
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Fannie Mae and Freddie Mac recently released new strategies to help provide greater access to mortgages for low- and moderate-income families in underserved markets.