The


Federal
Housing
Finance
Agency
(FHFA)
this
week

issued
a
public
request
for
information
for
plans
submitted
by

government-sponsored
enterprises
(GSEs)


Fannie
Mae
and


Freddie
Mac
under
the
Duty
to
Serve
(DTS)
program
that
aims
to
serve
underserved
markets
from
2025
through
2027.

Established
by
the
Housing
and
Economic
Recovery
Act
(HERA)
of
2008,
the
DTS
plans
for
underserved
markets
encompass
three
primary
areas:
manufactured
housing,
affordable
housing
preservation
and
rural
housing.

It
requires
the
GSEs
to
“increas[e]
the
liquidity
of
mortgage
investments
and
improv[e]
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,”
according
to
the

document
outlining
the
request
for
information.

“The
DTS
regulation
specifies
that
each
Enterprise
must
submit
a
three-year
plan
to
FHFA
describing
the
activities
and
objectives
the
Enterprise
will
undertake
to
serve
each
of
the
three
underserved
markets,”
the
document
explained.

“The
proposed
plans
were
due
to
FHFA
on
May
10,
2024,
and
revised
plans
will
be
due
in
September
2024,
after
the
conclusion
of
this
60-day
public
input
period.
FHFA
expects
to
issue
Non-Objections
to
the
Enterprises’
revised
Plans,
where
appropriate,
by
the
end
of
2024.”

As
the
U.S.
wrestles
with
housing
affordability
challenges
stemming
from
low
inventory
and
elevated
mortgage
rates,
these
plans
have
an
added
degree
of
importance,
according
to
FHFA
Director

Sandra
Thompson.

“Providing
sustainable
liquidity
for
affordable
housing
preservation,
rural
housing,
and
manufactured
housing
in
a
safe
and
sound
manner
is
a
key
component
of
the
Enterprises’
statutory
responsibility
to
serve
underserved
markets,”
Thompson
said
in
a
statement.
“I
look
forward
to
hearing
the
public’s
input
and
feedback
on
the
plans
the
Enterprises
have
proposed.”

FHFA
issued
a
final
rule
in
2016
implementing
the
DTS
requirements
for
the
GSEs.
Public
comment
has
the
potential
to
help
shape
the
policies
further,
but
FHFA
retains
final
authority
on
the
content
of
the
plans.
It
will
aim
to
“ensure
compliance
with
the
Enterprises’
Charter
Acts,
safety
and
soundness
measures,
and
other
conservatorship
and
regulatory
requirements.”

The
public
comment
period
will
remain
open
through
Aug.
12,
2024.
Interested
parties
can
submit
comments
through
the

DTS
page
on
FHFA’s
official
website,
while
the
agency
also
plans
to
hold
three
listening
sessions
on
July
15,
16
and
17
to
review
the
proposals.
Registration
for
these
listening
sessions
is

open
now.

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