Are you concerned about Fannie Mae’s and Freddie Mac’s continued commitment to serve the senior housing market in their current state of receivership? If so, now is the time to speak up. The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a proposed rule implementing provisions of the Housing and Economic Recovery Act of 2008 (HERA) that establish a duty for Fannie Mae and Freddie Mac to serve very low-, low- and moderate-income families in three specified underserved markets — manufactured housing, affordable housing preservation, and rural markets.
The proposed rule would require both to fulfill their core statutory purposes that include support for affordable housing. The approach to implementing the duty to serve provisions of HERA, consistent with the requirements of conservatorship, is to limit the proposed rule to existing core business activities at the Enterprises and to require that they not engage in new lines of business as a result of the duty to serve proposed rule.
Each entity would be evaluated on:
- The development of loan products, more flexible underwriting guidelines, and other innovative approaches to providing financing;
- The extent of outreach to qualified loan sellers and other market participants;
- The volume of loans purchased relative to the market opportunities available, subject to the statutory condition that FHFA not establish specific quantitative targets; and
- The amount of investments and grants in projects that assist in meeting the needs of the underserved markets.
E-mail: Comments to Alfred M. Pollard, General Counsel, may be sent by e-mail to [email protected]. Please include "RIN 2590-AA27" in the subject line of the message.
For the full proposed rule visit: Enterprise Duty to Serve Underserved Markets