Supporting affordable housing and access to credit for very low-, low- and moderate-income households is an integral part of Freddie Mac's mission. Duty to Serve presents a welcome opportunity to lead the mortgage industry in developing effective solutions to some of society’s most persistent housing problems. Our ultimate goal is clear: We look forward to helping more American families with their housing needs.
Duty to Serve is an extension of our comprehensive efforts to reach more families in underserved markets across the country. We’re committed to undertaking the activities in our proposed plan in the spirit of our broader community mission, which includes our efforts to stabilize communities, prevent foreclosures, responsibly expand credit, educate future borrowers, counsel current borrowers and support affordable rental housing. Additional efforts include our work to meet our affordable housing goals and our contributions to national affordable housing funds.
In the years ahead, we look forward to continued growth and innovation – and our partnerships with a wide variety of industry stakeholders – to meet the needs of underserved markets with expanded access to manufactured housing, rural housing and affordable housing preservation. We have developed a multi-pronged plan that includes increased loan purchases in these markets, new offerings, market research, technical skill-building, increased homebuyer education, community engagement and local outreach. In everything we do, we will emphasize responsible lending practices.
Support for Homeownership
Our Home Possible® and Home Possible Advantage® low down payment mortgages – designed for qualified first-time homebuyers and low- and moderate-income borrowers – continues to grow in popularity. Our low down payment options allow people to buy homes with one to four units as well as condos, planned-unit developments and manufactured homes. We have ongoing efforts to expand relationships with active participants in the manufactured housing industry, affordable housing preservation, high-needs rural regions and high-needs rural populations.
We’ve launched pilot programs to determine the best ways to adapt to changing demographics, household formation differences and other considerations that traditional underwriting methods don't typically address. We also finance energy efficient and renewable energy home improvements in many circumstances. Along with the housing counseling provided by our network of 14 Borrower Help Centers around the U.S. and the national Freddie Mac Borrower Help Network, we're helping more people become "mortgage ready" borrowers while aiding homeowners who want to avoid foreclosure.
Support for Rental Housing
Freddie Mac Multifamily helps ensure an ample supply of affordable rental housing by purchasing and securitizing mortgages on apartment buildings nationwide. Of its record- setting $56.8 billion in loan purchase and bond guarantee volume in 2016, roughly 90 percent supports rental units for low- and moderate-income households. In addition to conventional and small balance loans, Freddie Mac finances workforce and manufactured housing, as well as senior, student and state- or federally-subsidized properties. The Freddie Mac Green Advantage can be used with our other multifamily loan products to finance energy- and water-saving improvements.
Proposed Plan to Increase Support
Each GSE has submitted its proposed plans to FHFA. You can read the plans by visiting FHFA's website.
If you have questions about Duty to Serve, please contact 1-800-FREDDIE (option 2).