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Housing Finance

Fannie, Freddie Required to Expand Lending in Underserved Markets

The Federal Housing Finance Agency issued a final rule requiring Fannie Mae and Freddie Mac to improve access to mortgage financing to low- and moderate-income residents of manufactured homes, affordable housing, and rural communities.

The rule sets forth specific activities that the government-sponsored enterprises may consider to receive “duty to serve” credit. Each will submit a three-year plan for review by the agency, which will then rate the plans and report to Congress. The plans become effective January 2018.

In its comment letter to the FHFA earlier this year, ICBA raised several concerns regarding the proposed purchase of manufactured housing loans that are titled as personal property rather than real estate. ICBA noted that these types of loans were not appropriate for purchase by the GSEs, especially because both are severely undercapitalized.

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