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The Federal Housing Finance Agency unveiled the Duty to Serve program in its latest 2021 Underserved Market Plans for Fannie Mae and Freddie Mac. The plan took effect on Jan. 1, 2021.
The final rule for the FHFA's DTS program was implemented in 2016 following provisions that were mandated by the Housing and Economic Recovery Act of 2008. It requires that Freddie and Fannie serve three specified underserved markets that include manufactured housing, affordable housing preservation and rural housing. In order to support these three markets, Fannie and Freddie had to increase liquidity of mortgage financing for very low-, low- and moderate-income families, according to a press release.
"Under ordinary circumstances, each Enterprise would have submitted a three-year Plan for 2021-2023 in accordance with the DTS mandate," according to the release.
"Due to potential market disruption and uncertainty as a result of the COVID-19 pandemic, FHFA instructed the Enterprises to submit Plans for one year (2021) only, as an extension of their 2018-2020 Plans."
Click here to see Fannie and Freddie's underserved market plans in detail.