A multifaceted, multiyear plan to help America's families
Duty to Serve
Duty to Serve is a new regulation, issued by the Federal Housing Finance Agency (FHFA) and stemming from the Housing and Economic Recovery Act of 2008, implementing statutory requirements for Freddie Mac and Fannie Mae (the GSEs) to provide leadership to facilitate a secondary market for mortgages on housing for families with very low-, low-, and moderate-income in three historically underserved markets:
We leveraged our 45+ years of experience to create a multifaceted, multiyear Duty to Serve plan of how we'll develop and implement effective solutions to help overcome barriers in these markets. But we're not doing it alone.
We're working with the mortgage industry, lenders, housing organizations and other stakeholders to address persistent housing challenges in these markets and make financing of manufactured housing and rural housing easier for families with very low-, low- and moderate-income, and preserve the affordability of these homes over time. We're:
Increasing loan purchases.
Developing new products and enhancing existing ones.
Conducting ground-breaking research.
Expanding consumer education and community engagement.
Visit our manufactured housing, rural housing and affordable housing preservation web pages for more information on specific activities we're doing in each market and to access additional resources.
Duty to Serve is a new regulation, issued by the Federal Housing Finance Agency (FHFA) and stemming from the Housing and Economic Recovery Act of 2008, implementing statutory requirements for Freddie Mac and Fannie Mae (the GSEs) to provide leadership to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three historically underserved markets:
Affordable housing preservation
Under the regulation, Freddie Mac submitted an Underserved Markets Plan to FHFA describing the activities and objectives it will undertake to serve each market.
The plan is our comprehensive, three-year approach for working with the mortgage industry, housing groups and other stakeholders to address some of our nation’s most persistent housing challenges.
We’ll focus on increasing liquidity and stability in these markets as well as developing new initiatives, ground-breaking research and consumer education.
It will provide lenders with new products and product enhancements and liquidity to serve borrowers in the three underserved markets. It will also offer lenders opportunities to partner with Freddie Mac through pilot programs that will help to shape our efforts under our plan. In all, our efforts under Duty to Serve will help lenders originate more loans, expand their footprint into new markets and may align with their Community Reinvestment Act needs.
A manufactured home is built in a factory, according to the Manufactured Home Construction and Safety Standards of June 1976 (“the HUD Code”-- 24 C.F.R. Part 3280), and secured on a permanent, nonremovable steel frame or chassis. The home can be built as one complete section, or in multiple sections, that are transported, assembled and installed at the home site.
Purchase more loans used to finance manufactured homes titled as real property,
Develop new sustainable capabilities to buy and securitize personal property (chattel) loans.
Enhance current products and create new offerings
Conduct a personal property (chattel) test and learn pilot program to better understand the market for manufactured homes titled as personal property, or chattel, and to support purchases of loans secured for these homes.
Provide consumer education to help borrowers navigate both the real property and personal property markets
We will communicate any new product enhancements as we begin to implement our plan. We will announce them to the market and our lender partners directly, as we do today, through Guide Bulletin updates and our customer account teams.
The cornerstone of our approach is partnership, and our lender partners will play a significant role. We’re currently coordinating all the activities related to the strategies highlighted in our plan. We look forward to listening to the experiences of lenders who already participating in these markets and having further discussions about how we can help. We’ll also be looking for, and reaching out to, lenders who have an interest in getting into these markets.
You can visit our Duty to Serve corporate web page at http://www.freddiemac.com/about/duty-to-serve/ and review our Duty to Serve plan, Freddie Mac Duty to Serve Plan Summary, videos and the FHFA Duty to Serve Program Overview. Also visit our Single-Family Duty to Serve web page for market specific resources, including FAQs, promotional collateral and updates on what’s new. You can also contact our Customer Support Contact Center at (800-FREDDIE, Option 2).