Organizations Urge FHFA to Reform “Duty to Serve” Proposals
Affordable housing organizations push the Federal Housing Finance Agency to change Fannie Mae/Freddie Mac’s “Duty to Serve” (DTS) proposals before approving them.
According to MPA, the DTS regulation requires both GSEs to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three underserved markets: manufactured housing, affordable housing preservation, and rural housing. Earlier this year, the GSEs submitted mandatory three-year plans for how they will comply with the DTS regulation. However, a group calling themselves the Underserved Mortgage Markets Coalition sent a letter to FHFA acting director Sandra Thomson claiming that the plans “fail to effectively reach those not served or not served well by the conventional mortgage market.”