this federal housing finance agency (FHFA) issued a public request this week for program information submitted by Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac Under the Duty to Serve (DTS) program, the program aims to serve underserved markets from 2025 to 2027.
Established under the Housing and Economic Recovery Act (HERA) of 2008, the DTS program targets underserved markets and covers three main areas: manufactured housing, affordable housing preservation, and rural housing.
It requires government support for businesses to “increase[e] Mortgage Investment Liquidity and Improvement[e] Allocate available investment capital to promote the secondary market for residential financing for very low-, low-, and moderate-income households in underserved markets,” the document outlining the information request states.
“DTS regulations require that each establishment must submit to FHFA a three-year plan describing the activities and goals the establishment will undertake to serve these three underserved markets,” the document explains.
“The proposed plan is due to be submitted to FHFA on May 10, 2024, and the revised plan will be submitted in September 2024, after the 60-day public comment period. FHFA expects to review the revised plan as appropriate by the end of 2024. Plans to issue no objection.
FHFA Director Sandra Thompson said these programs are even more important as the U.S. faces housing affordability challenges caused by low inventory and rising mortgage rates.
“Providing sustainable liquidity for affordable housing preservation, rural housing and manufactured housing in a safe and robust manner is a critical component of businesses’ statutory responsibility to serve underserved markets,” Thompson said in a statement. “I We look forward to hearing the public’s views and feedback on the plans proposed by the business.”
FHFA issued a final rule in 2016 to implement the GSEs’ DTS requirements. Public input has the potential to help further develop policy, but FHFA retains the final say on program content. Its objective is to “ensure compliance with the Corporations Charter Act, safety and soundness measures and other regulatory and supervisory requirements.”
The public comment period will last until August 12, 2024. to review these proposals. Registration for these listening sessions is now open.
