FHFA Seeks Input on ‘Duty to Serve’ Modifications

The Federal Housing Finance Agency is seeking input on proposed modifications to the Underserved Markets Plans for Fannie Mae and Freddie Mac. The “duty to serve” plans require the enterprises to serve three specified underserved markets—manufactured housing, affordable housing preservation, and rural housing.

The FHFA said Fannie has submitted substantial modifications related to distressed properties, chattel loans, rural investment targets, and small financial institutions in rural areas. ICBA warned in a 2016 comment letter that the program puts taxpayers at risk of another bailout of Fannie and Freddie, given their lack of capital.