FHFA seeks public comment on GSEs’ underserved markets plans – HousingWire

of Federal Housing Finance Agency (FHFA) this week issued a public request for information on 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 to 2027.

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

It requires the GSEs to “grow up[e] liquidity of mortgage investments and improvements[e] deploying available investment capital to facilitate a secondary market for housing finance for very low, low and moderate income households in those underserved markets,” the document outlining the request for information said.

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

“Proposed plans would be submitted to FHFA on May 10, 2024, and revised plans are expected in September 2024, following the end of this 60-day public input period. FHFA expects to issue non-objections to revised Enterprise plans, where appropriate, by the end of 2024.

As the U.S. faces housing affordability challenges stemming from low inventory and high mortgage rates, these plans take on an increased degree of importance, according to FHFA Director Sandra Thompson.

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

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

The public comment period will remain open until August. 12, 2024. Interested parties can submit comments through the DTS page on FHFA’s official website, while the agency plans to hold three more hearings on July 15, 16 and 17 to consider the proposals. Registration for these hearings is now open.

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