FHFA Revises GSE ‘Duty-to-Serve’ Guidance

The Federal Housing Finance Agency today issued revised guidance for Fannie Mae and Freddie Mac on their “duty to serve” three specified markets, including manufactured housing, affordable housing and rural housing. Under current rules, the GSEs must each submit a three-year draft plan detailing their planned activities and objectives for these markets.

The revised guidance—which takes effect with the 2021-2023 plan cycle—establishes four new ratings to describe the GSEs’ performance, replacing the previous five-tiered ratings framework. It also establishes higher scoring expectations and increases the threshold for determining compliance from 70% to 80%.