Fannie Mae and Freddie Mac, the primary government-sponsored enterprise (GSE) which focuses on mortgage and housing unveil their new Duty To Serve plan. Both of the GSEs will be focusing on affordable housing, rural housing and manufactured housing. This new plan is a blueprint to address challenging housing markets in the US.
“Duty to Serve Plan” is based on the proposals submitted last year through public input and feedback from the Federal Housing Finance Agency. As a result these GSEs will be focusing on affordable housing, rural housing and manufactured housing using specific methods approved by them.
Fannie Mae’s Duty To Serve Plan
Fannie Mae will be using a combination of analysis, testing, partnerships, and loan purchases to serve these markets. The GSE sees this as part of their continued efforts to improve access to mortgage financing and also create affordable housing opportunities. It targets people of modest means across the United States.
Earlier, Fannie Mae launched a program for manufactured housing targeting New Hampshire. The new legislation in the state allows residents to take ownership of a portion of the land that their manufactured homes are located.
Freddie Mac’s Duty To Serve Plan
As for Freddie Mac their plan is to increase loan purchases in the three markets mentioned earlier. Also, they will add new products, research and expanded consumer education. Partnership with the mortgage industry, community nonprofits, local government and other organizations is also on the way.
Meanwhile, Freddie Mac’s multifamily plan highlights the following plans:
- re-entering the Low-Income Housing Tax Credit (LIHTC) equity market
- increasing liquidity for developers that qualify for federal subsidies, including Section 8 vouchers.
2018 is indeed shaping up to be a good year for the mortgage, housing, and real estate industries.
Reference: GSEs Unveil Their Duty To Serve Plans