On April 27, the Federal Housing Finance Agency (FHFA) released the 2022-2024 Underserved Markets Plans for Fannie Mae and Freddie Mac (the Enterprises) under the Duty to Serve (DTS) Program.
What This Means
The Enterprises are required to submit proposed plans every three years to FHFA that outlines their objectives and activities to serve three underserved markets—manufactured housing, rural housing and affordable housing.
These plan submissions mark the Enterprises’ second attempt at pushing 2022-2024 proposals through. In January of 2022, Acting FHFA Director Sandra Thompson rejected previously submitted plans from the Enterprises that had been originally submitted under former FHFA Director Mark Calabria.
FHFA must now review the proposed plans and make an approval decision based on the intended impact on each market.
Why This is Critical for Our Industry
As required by the DTS, the Enterprises must use these plans to outline their objectives and activities to serve the manufactured housing, rural housing, and affordable housing preservation markets. This is critical because preservation of mortgage liquidity provided by the Enterprises in all markets during all economic cycles is paramount to the ongoing stability of our sector.
NMHC has been actively engaged with the Enterprises and FHFA regarding potential impacts that these plans—along with the other affordable housing goals the Enterprises must meet—could have on the multifamily industry. In addition, NMHC met with FHFA just last month during our standing quarterly meeting to reiterate these concerns.