FHFA Objects to Proposed 2022-2024 Manufactured Housing, Other Duty to Serve Plans
The Federal Housing Finance Agency (FHFA), as the statutory regulator of Fannie Mae and Freddie Mac and the federal agency responsible for implementation of the Duty to Serve Underserved Markets (DTS) directive of the Housing and Economic Recovery Act of 2008 (HERA), announced on January 5, 2022, in a potentially significant action, that it has filed objections to the proposed 2022-2024 DTS implementation plans submitted earlier in 2021 by the two mortgage giants.
In a brief News Release (see, copy attached), FHFA stated that following a review of the proposed plans – the second set to be submitted by Fannie and Freddie under the DTS mandate – it has “determined that neither Plan meets the DTS non-objection standard for any of the three underserved markets” and has “directed both Enterprises to submit additional revisions to improve the Plans’ impact on all three DTS underserved markets.” (Emphasis added).
While the underlying FHFA objection letter referenced by the January 5, 2022 News Release has not been made public and an MHARR request for full disclosure of that communication by FHFA has been denied (at least initially), it is significant that FHFA’s objections address “all three” underserved markets, including the HUD Code manufactured housing market.
At the broadest level, FHFA’s announcement confirms the validity of MHARR’s consistent and elemental position that the proposed 2022-2024 DTS plans, as submitted, are fundamentally insufficient with respect to the HUD Code manufactured housing market and, therefore, in violation of the statutory DTS directive. This position has not changed since the submission of the Enterprises’ first DTS plans, and was enunciated unequivocally by MHARR at a July 14, 2021 FHFA “listening session” concerning the proposed 2022-2024 plans, in parallel written comments to FHFA filed on July 15, 2021, and in a subsequent October 5, 2021 meeting with senior FHFA officials.
As MHARR has repeatedly emphasized in all such forums, Fannie Mae and Freddie Mac through multiple DTS proposals and modifications, have shown no change whatsoever in their continuing unacceptable refusal to serve the vast bulk of the manufactured housing market financed through personal property loans and their continuing view of such chattel-financed homes – the industry’s most affordable – as “trailers” rather than legitimate housing. This blatant and baseless discrimination against truly affordable housing and lower and moderate-income homebuyers helps fuel the ongoing housing crisis in the United States.
MHARR will continue to closely monitor this matter as it progresses, will take further action as necessary, and will advise you accordingly.
cc: HUD Code Manufactured Housing Producers, Retailers, Communities and Finance Companies
Manufactured Housing Association for Regulatory Reform (MHARR)
1331 Pennsylvania Ave N.W., Suite 512
Washington D.C. 20004
Phone: 202/783-4087
Fax: 202/783-4075
Email: MHARR@MHARRPUBLICATIONS.COM
Website: manufacturedhousingassociation.org
The Federal Housing Finance Agency (FHFA), as the statutory regulator of Fannie Mae and Freddie Mac and the federal agency responsible for implementation of the Duty to Serve Underserved Markets (DTS) directive of the Housing and Economic Recovery Act of 2008 (HERA), announced on January 5, 2022, in a potentially significant action, that it has filed objections to the proposed 2022-2024 DTS implementation plans submitted earlier in 2021 by the two mortgage giants.
In a brief News Release (see, copy attached), FHFA stated that following a review of the proposed plans – the second set to be submitted by Fannie and Freddie under the DTS mandate – it has “determined that neither Plan meets the DTS non-objection standard for any of the three underserved markets” and has “directed both Enterprises to submit additional revisions to improve the Plans’ impact on all three DTS underserved markets.” (Emphasis added).
While the underlying FHFA objection letter referenced by the January 5, 2022 News Release has not been made public and an MHARR request for full disclosure of that communication by FHFA has been denied (at least initially), it is significant that FHFA’s objections address “all three” underserved markets, including the HUD Code manufactured housing market.
At the broadest level, FHFA’s announcement confirms the validity of MHARR’s consistent and elemental position that the proposed 2022-2024 DTS plans, as submitted, are fundamentally insufficient with respect to the HUD Code manufactured housing market and, therefore, in violation of the statutory DTS directive. This position has not changed since the submission of the Enterprises’ first DTS plans, and was enunciated unequivocally by MHARR at a July 14, 2021 FHFA “listening session” concerning the proposed 2022-2024 plans, in parallel written comments to FHFA filed on July 15, 2021, and in a subsequent October 5, 2021 meeting with senior FHFA officials.
As MHARR has repeatedly emphasized in all such forums, Fannie Mae and Freddie Mac through multiple DTS proposals and modifications, have shown no change whatsoever in their continuing unacceptable refusal to serve the vast bulk of the manufactured housing market financed through personal property loans and their continuing view of such chattel-financed homes – the industry’s most affordable – as “trailers” rather than legitimate housing. This blatant and baseless discrimination against truly affordable housing and lower and moderate-income homebuyers helps fuel the ongoing housing crisis in the United States.
MHARR will continue to closely monitor this matter as it progresses, will take further action as necessary, and will advise you accordingly.
cc: HUD Code Manufactured Housing Producers, Retailers, Communities and Finance Companies
Manufactured Housing Association for Regulatory Reform (MHARR)
1331 Pennsylvania Ave N.W., Suite 512
Washington D.C. 20004
Phone: 202/783-4087
Fax: 202/783-4075
Email: MHARR@MHARRPUBLICATIONS.COM
Website: manufacturedhousingassociation.org
