Rural Underserved Market Plan Overview Disclaimer Fannie Maes Duty to Serve Underserved Markets Plan must receive a nonobjection from FHFA before becoming effective The Objectives in the proposed and final Plan may be subject to change based on factors including public input FHFA commen ID: 713237
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Slide1
Doing More for Underserved Housing Markets
Rural Underserved Market Plan Overview Slide2
Disclaimer
Fannie Mae’s Duty to Serve Underserved Markets Plan must receive a non-objection from FHFA before becoming effective. The Objectives in the proposed and final Plan may be subject to change based on factors including public input, FHFA comments, compliance with Fannie Mae’s Charter Act, safety and soundness considerations, and market or economic conditions.
© 2017 Fannie Mae. Trademarks of Fannie Mae.Slide3
What is the Duty To Serve Rule?
A regulation issued in December 2016 by the Federal Housing Finance AgencyDriven by the Housing and Economic Recovery Act (HERA) of 2008, which guides our activities at Fannie Mae every day
It requires Fannie Mae and Freddie Mac to improve access to mortgage financing for
those of
modest means in three
housing
markets posing persistent
challenges: Manufactured housingAffordable housing preservationRural housingSlide4
How are we approaching this challenge?
We’ve developed a three-year Underserved Markets Plan as required by FHFA, proposing activities to address the housing challenges in each market.
Our approach is to:
Analyze
–
Use research
and analysis
for a data-driven market understandingTest and learn – Execute pilots and evaluating product and program changes
Partner
and
innovate – Listen and work closely with market-based expertsDo what we do best – Use the power of the secondary market to attract private capitalSlide5
Rural Housing: Proposed Actions
Work with local and regional lenders, including small financial institutions, to explore ways to provide more liquidity for rural housing credit.
Increase our collaboration with non-profit and government entities that support affordable housing in rural areas.
Dedicate on-site staff to high-needs rural areas to supplement activities by local-market participants and housing groups.
Increase outreach and loan purchases in rural regions.
Enhance lending products to increase access to credit for rural families.
Increase purchases of rural loans
from small financial institutions.
Explore Low-Income
Housing Tax
Credit equity investments in rural markets, with a focus on high-needs regions and populations. Slide6
Rural market: Combined high-needs rural areas
Under the DTS rule, a colonia must be a community identified under a federal, State, tribal, or local program.
Colonia
information
shown on the map above is courtesy
of the State of Texas and the University of New Mexico. Slide7
Planning timeline
2017
2018
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Public input period on
Proposed Evaluation Guidance
Fannie Mae submits draft Plans to FHFA
Public input period on draft Plans
5/8 – 7/10
Evaluation Guidance issued 8/2
Fannie Mae revises draft Plans as appropriate
FHFA Non-Objections to Plans issued
Plans Effective
Dates subject to change. The blue boxes above indicate the months in which certain activities are expected to occur.
They
are not representative of the exact start and end date for the activity within a month or within months.Slide8
Duty to Serve: How can you help?
Take action—provide comments on our plan by July 10, 2017!We encourage you to review and provide feedback on our proposed Underserved Markets Plan at
www.fhfa.gov/duty-to-serve
during the public comment period.
Look for opportunities to help us implement our plan in 2018 and
beyond:
Engage and innovate with
Fannie Mae representatives and industry partnersSupport future research, outreach, and pilotsWe welcome your ideas
and
creativity!Slide9
Where can you get more information?
fanniemae.com/
dutytoserve
www.fhfa.gov/dtsSlide10
Duty to Serve Overview—Rural MarketsSlide11
Rural Markets Plan Overview
Perform and publish foundational research to build broader understanding of opportunities in rural markets generally and for high needs areas and populations
Develop our platform and invest in LIHTC equity to support rural markets and high needs areas and populations
Address the USDA 515 maturing mortgage crisis through new execution development in support of small properties and high needs areas and populations
Explore opportunities in the Single Family Rental (SFR) market
Explore opportunities to grow support for unsubsidized small rural properties