The Federal Housing Finance Agency (FHFA) is requesting public input on the Duty to Serve Underserved Markets rule, which was issued on December 13, 2016.
The Duty to Serve provision requires Fannie Mae and Freddie Mac to improve the availability of “safe and sound” mortgage financing for low- and moderate-income families in three underserved markets: manufactured housing, affordable housing preservation, and rural housing. These are also called chattel loans. Fannie Mae and Freddie Mac must adopt a three-year plan to meet this mandate.
The FHFA is seeking input on what either of these enterprises — Fannie Mae or Freddie Mac — should include in a pilot initiative to serve these markets.
In 2015, nearly 18 million Americans lived in manufactured homes, according to the FHFA. Eighty percent of new manufactured homes placed in 2015 were chattel loans.
The agency also seeks comments on the Evaluation Guidance, released Jan. 13. The Evaluation Guidance outlines the agency’s expectations regarding the process for the enterprises to develop plans to serve these markets. It also sets out how FHFA will evaluate the enterprises’ achievements in executing their plans each year.
Input on the pilot initiative is due by Feb. 17, 2017. Comments on the proposed evaluation guidance is due by May 15, 2017. All input must be submitted through the FHFA’s dedicated webpage.