On Dec. 12, 2016, the Federal Housing Finance Agency (FHFA) released its final "Duty to Serve" rule. The rule is intended to facilitate a secondary market for mortgages on residential properties in specified underserved markets. The rule requires Fannie Mae and Freddie Mac to each submit a Underserved Markets Plan (UMP) detailing how each entity will carry out their Duty to Serve responsibilities with each plan subject to a public input process. The final rule reflects NAR's policy to allow Duty to Serve credit for expanding financing opportunities for affordable multifamily rentals and underserved rural markets. Additionally, FHFA agreed with NAR’s comment to expand secondary market opportunities for manufactured housing financing including a proposed pilot for the financing of chattel loans.
During the development of the Enterprises UMP plans, NAR will be supportive of Enterprises efforts to promote disposition strategies that ensure institutional investors aren’t given an advantage over potential owner occupant families through the bulk sale of properties or sale of mortgage notes.