The Federal Housing Finance Agency published the 2022-2024 Underserved Markets Plans for Fannie Mae and Freddie Mac under the Duty to Serve Program.
The DTS Plans demonstrate a strengthened commitment to serving manufactured housing, affordable housing preservation, and rural housing. The targets and strategies in the Plans build on lessons learned and progress made during the first four years of the DTS program.
“Providing sustainable liquidity for affordable housing preservation, rural housing, and manufactured housing in a safe and sound manner is an integral part of the Enterprises’ responsibility to serve underserved markets,” FHFA Acting Director Sandra L. Thompson said. “The additional activities and objectives to be implemented under these Plans are important steps toward the Enterprises fulfilling their Duty to Serve mandate over the coming years.”
In May 2021, the Enterprises submitted proposed Duty to Serve Plans that FHFA evaluated against agency priorities and the DTS regulation. FHFA determined that none of the Enterprises’ initial Plans met the DTS Non-Objection standard. After further revisions and evaluation, FHFA has determined that the Enterprises’ latest proposed Plans now meet the Non-Objection standard.
The activities outlined by the Enterprises to achieve their DTS plan objectives remain subject to FHFA review and approval to ensure compliance with the Enterprises’ Charter Acts, safety and soundness measures, and other conservatorship and regulatory requirements.
Under the DTS Program, the Enterprises prepare and submit to FHFA proposed three-year underserved markets plans that outline their objectives and activities to serve the manufactured housing, rural housing, and affordable housing preservation markets. FHFA reviews and issues Non-Objections to those proposed plans based on the intended impact on each market.
Freddie Mac Plans to Meet DTS Requirements
In its published report, Freddie Mac outlined several initiatives underway.
Over the next three years, Freddie Mac intends to expand support for the manufactured housing market in the following ways:
1. Support manufactured housing titled as real property:
a. Increase purchases of loans secured by manufactured homes titled as real property.
b. Provide new product flexibilities to facilitate the origination of mortgages secured by manufactured homes.
c. Support growth in the market for manufactured homes through research and outreach.
2. Support manufactured housing titled as personal property:
a. Complete a feasibility assessment for the requirements and processes necessary to support loan purchase, including but not limited to credit, servicing, consumer protections, pricing, and risk structures.
b. If FHFA approval is obtained, purchase loans to assist with product design to support future loan purchase capabilities.
3. Support the Resident Owned Community (ROC), non-profit, and government instrumentality market:
a. Purchase loans on ROCs and non-profit and government instrumentality-owned communities.
4. Support opportunities for Duty to Serve-qualifying tenant pad lease protections:
a. Purchase loans on properties that commit to implement Duty to Serve tenant pad lease protections.
“In the manufactured housing market, we will expand financing solutions for consumers, improve tenant protections in the manufactured housing communities (MHCs) that we finance, and increase secondary market liquidity,” the report stated.
Fannie Mae Plans to Meet DTS
Fannie Mae Regulatory Activities for Manufactured Housing
A. Support manufactured homes titled as real property
1. Acquire purchase money mortgage (PMM) loans secured by MHRP.
2. Explore opportunities to facilitate financing of loans secured by MHRP located in certain manufactured housing communities.
3. Expand on prior efforts to facilitate financing of loans on homes secured by MHRP located in fee simple developments.
B. Manufactured housing communities (MHCs) owned by a governmental entity, nonprofit organization, or residents
1. Increase loan purchases of MHCs owned by government entities, nonprofit organizations, or residents.
C. Manufactured housing communities (MHCs) with certain pad lease protections
1. Increase the number of loan purchases of MHCs with tenant site lease protections.
D. Additional Manufactured Housing Communities Activities
1. Increase the purchase of MHC loans benefiting from Manufactured Housing Rental flexibilities.
2. Supporting renters in manufactured housing communities through credit-building activities.
Fannie Mae Loan Purchase Targets for Manufactured Housing
A. Support manufactured homes titled as real property
1. Acquire purchase money mortgage (PMM) loans secured by MHRP. B. Manufactured housing communities (MHCs) owned by a governmental entity, nonprofit organization, or residents
B. Manufactured housing communities (MHCs) owned by a governmental entity, nonprofit
organization, or residents.
1. Increase loan purchases of MHCs owned by government entities, nonprofit organizations, or residents.
C. Manufactured housing communities (MHCs) with certain pad lease protections
1. Increase the number of loan purchases of MHCs with tenant site lease protections.
D. Additional Manufactured Housing Communities Activities
1. Increase the purchase of MHC loans benefiting from Manufactured Housing Rental flexibilities.
“Fannie Mae will continue to be a reliable source of financing for manufactured homes and communities, providing affordable and stable homeownership and rental opportunities for households around the country,” Enterprise published in its report. “We are committed to sustainably increasing our share of the Manufactured Homes Titled as Real Property (MHRP) market, increasing our role in financing non-traditionally owned MHCs, and working with our partners to increase market adoption of FHFA’s tenant site lease protections, as well as advancing innovative solutions to benefit more families and help the industry grow.”
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