Newsroom

February 22, 2017

FHFA video explains duty-to-serve rule

An overview of the Federal Housing Finance Agency's duty-to-serve rule is provided in a new three-minute video released Wednesday and led by Jim Gray, duty-to-serve program manager.

The video describes how the new rule requires Fannie Mae and Freddie Mac to adopt plans to improve the distribution and availability of mortgage financing for residential properties that serve very low-, low- and moderate-income families in the three specified underserved markets: manufactured housing, affordable housing preservation and rural housing markets.

Under the final rule, and as urged by NAFCU, the FHFA is allowing credit unions that have experience making chattel loans for manufactured housing to be eligible for duty-to-serve credit.

The video also explains that the government-sponsored enterprises are currently working on their three-year plans – which become effective January 2018 – to describe the activities and objectives they will undertake to meet their duty-to-serve requirements.

Earlier this month, NAFCU Regulatory Affairs Counsel Ann Kossachev and credit union representatives met with FHFA staff to discuss the final rule. NAFCU's Final Regulation on FHFA's duty-to-serve rule can be found here.