The Federal Housing Finance Agency has announced the underserved market plans for Fannie Mae and Freddie Mac for 2018-2020.
Fannie Mae plans to purchase 269 loans secured by LIHTC properties during the two-year period while also making five LIHTC equity investments in 2019.
Freddie Mac plans on making nine LIHTC equity investments during 2018-2020 serving high-needs rural regions.
The Enterprise Duty to Serve Underserved Markets rule was published in 2016 and is a product of the Housing and Economic Recovery Act of 2008 (HERA) creating an amendment to the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. The rule requires Fannie and Freddie (the Enterprises) to serve three underserved markets: Manufactured Housing, Rural Housing, and Preservation of Affordable Housing. FHFA determined through the rule that the Enterprises would be allowed to resume LIHTC investment, but only in these underserved areas. The investments in those areas as well as the purchase of loans in these areas earn the Enterprises points towards reaching goal metrics set forth in the Duty to Serve rule.
