The Housing and Economic Recovery Act of 2008 mandates that Fannie Mae and Freddie Mac have a ‘Duty to Serve’ three traditionally underserved markets of:

Rural Housing
Manufactured Housing
Affordable Housing Preservation
The GSEs are tasked with increasing liquidity and investment capital in these markets.

The Federal Housing Finance Agency (FHFA) issued a Proposed Rule on Duty to Serve on December 15, 2015. Comments to the Rule were due on March 17, 2016.

Policy News town

HAC Comments on Duty To Serve Plan Modifications – December 2023

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The Federal Housing Finance Agency (FHFA) put out a call for comments on the Enterprises’ (Fannie Mae and Freddie Mac’s) proposed 2023 Duty to Serve Plan modifications. Both Enterprises proposed cutting a variety of their loan purchase goals in rural areas, citing market conditions as the justification. HAC pushed back on these proposed cuts in our comments. Specifically, HAC made in following points in our comment:

  • HAC is generally agnostic as to which section of Freddie Mac’s Duty to Serve plan USDA Section 515 purchases fall under, but strongly supports their continued inclusion and tangible results. We support mainlining the Section 515 purchases currently included in the rural section of the plan because they focus on rural-targeting of properties.
  • HAC opposes cuts to loan purchase goals in high-needs rural regions and from small, rural financial institutions.
  • HAC opposes cuts to loan purchase goals for manufactured housing communities.
  • HAC supports Fannie Mae’s new proposed objective to better serve the manufactured housing needs of Native communities.
  • HAC support permitting the Enterprises to make equity investments in CDFIs – a decision which relies on approval from the FHFA.
HAC DTS Plan Modification Comments 12.06.23 FINAL

A Methodological Approach to Estimate Residential Heirs’ Property in the United States

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The Housing Assistance Council (HAC), in partnership with Fannie Mae, developed a methodology to estimate the prevalence of heirs’ properties in two categories, most likely heirs’ properties and properties that are at risk of currently being or soon becoming heirs’ properties throughout the United States. Slightly over 500,000 properties were identified as potential heirs’ properties with nearly two thirds (64.6%) located in rural areas.  Despite challenges including the lack of uniformity of tax assessment data collection and reporting, the conservative estimated assessed value of identified heirs’ properties is $32.3 billion in 44 states and the District of Columbia.

Download Report

Heirs’ Property Research Report 12.11.23 1
Policy News town

HAC’s Comments on Duty to Serve – July 2023

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The FHFA requested comments on Fannie Mae and Freddie Mac’s Duty to Serve plans as part of their annual Duty to Serve Listening Sessions. Jonathan Harwitz, HAC’s Director of Public Policy, provided oral comments, accompanied by longer written comments, on behalf of HAC. If implemented robustly, Duty to Serve has the potential to improve the lives of people living in the most underserved communities. HAC’s comments focused on:

  • Maintaining USDA Section 515 preservation as a core goal of the rural Duty to Serve Plans;
  • Permitting targeted equity investments in CDFIs;
  • Using, and further refining, the new Colonias Census Tract definition; and
  • Meeting rural LIHTC equity investment goals.

Read HAC’s full comments.

HAC DTS Rural Listening Session Comments
Policy News town

HAC Submits Comments on Proposed Duty to Serve Modifications

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The Federal Housing Finance Agency (FHFA) requested comments on Fannie Mae and Freddie Mac’s (the Enterprises) proposed modifications to their Duty to Serve 2022 Underserved Markets Plans. If implemented robustly, Duty to Serve has the potential to improve the lives of people living in the most underserved communities. HAC’s comments highlighted two proposed modifications:

Key Takeaways

  1. USDA Section 515 preservation is critical to the Duty to Serve mission. Freddie Mac’s proposal to remove the Section 515 purchases from their Plan should be rejected.
  2. Equity investments in CDFIs are the single most impactful action that the FHFA could currently take to improve Duty to Serve outcomes. Fannie Mae’s proposal to add equity investments in Native CDFIs to their plan is a step in the direction of better serving Indian Country. For more suggestions on how the Enterprises could better serve Indian Country, see HAC’s comments from the July 2022 Native American Housing Listening Session.

Read HAC’s full comments.

HAC Duty to Serve Plan Modification Comments

HAC also signed on to a letter from the Underserved Mortgage Markets Coalition with a longer set of comments on the proposed modifications.

All the comments received by the FHFA can be viewed here.

 

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HAC’s Comments on Duty to Serve for Native American Communities

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The FHFA requested comments on Fannie Mae and Freddie Mac’s Duty to Serve plans for Native American communities. Dave Castillo, CEO of Native Community Capital and a HAC Board Member, provided oral comments, accompanied by longer written comments, on behalf of HAC. Housing finance in Native American communities has been a stunning example of both racial and geographic inequity at both the policy and private market levels for decades. If implemented robustly, Duty to Serve has the potential to improve the lives of people living in the most underserved communities. HAC has several improvements that we think should be made to best serve Native communities’ need:

Key Takeaways

  • Allow GSE Equity Investments for Native CDFIs

    Equity investments would allow CDFIs serving Native communities to strengthen their capital structures, leverage additional debt capital, and, as a result, increase lending and investing in their communities.

  • Increase purchase goals for mortgages on Native lands

    Fannie Mae has no set goal and Freddie Mac’s is very modest. Increasing these would show the Enterprises’ commitments to Native housing and help Native communities house more people adequately.

  • Establish Native lending teams

    These teams would focus on Native communities and help ensure that these communities are treated equitably and with cultural competency.

  • Create Native-tailored mortgage products

    Tribal lands have unique property ownership structures and creating loan structures that can meet Native communities’ specific needs would help increase investments and economic growth.

  • Increase LIHTC investment in Native communities

    Despite how successful LIHTC has been in many communities, rural and Native communities have not been able to benefit equitably from these tax credits. The Duty to Serve plans have goals to invest in rural communities but adding goals for Native communities specifically would ensure that they are served as well.

Read HAC’s Comments

HAC DTS Rural Native Housing Listening Session Comments 07.13.22
Policy News from the Administration

HAC Recommends a Focus on Racial and Geographic Equity in FHFA Comments

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HAC submitted comments in response to the Federal Housing Finance Agency’s (FHFA) Request for Input (RFI) on the Enterprise Equitable Housing Finance Plan framework. Fannie Mae and Freddie Mac (the Enterprises) have been instructed to submit Equitable Housing Finance Plans to FHFA by the end of 2021. The Plans will frame the Enterprises’ goals and action plans to advance equity in housing finance for the next three years. These plans will work alongside other FHFA efforts, including Duty to Serve, the importance of which HAC has long championed. HAC applauds the focus on equity outlined in this RFI, and encourages consideration of the unique needs of rural communities of color in the creation of the Equitable Housing Finance Plans.

Key Takeaways

  • Limited Activity

    Enterprise activity in rural communities of color has been very limited.

  • Support Capacity Building

    Enterprise support for capacity building and access to capital are critical factors necessary to build racial and geographic equity in rural places

  • Rural is Different

    Rural realities must be considered in the creation of the plans

  • Stakeholder participation

    Stakeholder engagement in the process of creating and revising the plans will be key

FHFA Equitable Housing Finance Plan Comments 10.25.21
Policy News from the Administration

HAC Recommends FHFA and the GSEs Prioritize Addressing Inequity

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HAC submitted comments in response to the Federal Housing Finance Agency’s (FHFA) Request for Input on the Enterprises’ 2022-2024 Duty to Serve Underserved Markets Plans. Through the Duty to Serve mandate, the Enterprises (Fannie Mae and Freddie Mac) are tasked with increasing liquidity and investment capital in three traditionally underserved markets: Rural Housing, Manufactured Housing, and Affordable Housing Preservation. HAC’s comment noted that secondary housing market policy is and has historically been part of a system that is delivering vastly different outcomes for people depending on where they are born – and this inequity must be addressed by more ambitious Duty to Serve investment and purchase goals.

Key Takeaways from HAC’s Comments

  • Be Ambitious

    More ambitious purchase and investment goals are needed as we enter the next phase of Duty to Serve.

  • Prioritize Equity

    Racial and geographic equity should be core to the Duty to Serve mission.

  • Encourage Partnership

    Strong rural partnerships are essential to Duty to Serve’s success.

  • Measure Success

    More transparent data is needed for stakeholders to truly understand and evaluate the success of Duty to Serve.

HAC’s comments to the FHFA aim to improve Duty to Serve program

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The Housing Assistance Council (HAC) offered comments on Duty to Serve as the Enterprises (Fannie Mae and Freddie Mac) react to the housing and economic challenges of the COVID-19 pandemic and work to plan for the future of Duty to Serve. Our country is facing an unprecedented health and economic challenge, and Duty to Serve remains critically important to help rural areas weather the storm.

HAC’s comments covered all three Duty to Serve markets (rural housing, manufactured housing, and affordable housing preservation) and called for:

  • More transparent data availability so that stakeholders can better understand Duty to Serve progress and areas for improvement.
  • Continued investment in building partnerships with existing housing providers including local, regional and national nonprofits; tribes; and Community Development Financial Institutions (CDFIs) who already work in high-need communities,
  • More ambitious loan purchase goals in all three Duty to Serve markets.

HAC firmly sees Duty to Serve as a social justice issue. In an era in which racial and economic inequities are top-of-the-fold news stories, we can use Duty to Serve to go past minimum promised levels of loan purchase and try to fundamentally shift the lives of Black, Hispanic, Indigenous and persistently poor families.

Click here to read HAC’s full comment letter. 

Snapshots of Rural Data

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Rural America is a vast and diverse place, with a character all its own. This page includes infographics from Rural Voices Magazine and HAC’s publications which tell a small story in data about a particular slice of rural America.

Duty to Serve Infographic

Duty to Serve in Rural America

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The Duty to Serve program requires the GSEs to help direct investment toward vulnerable people and places. How does that impact rural areas?

demographics infographic 2019

The Demographics of Rural America

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Learn a little bit more about the people of rural America who make up roughly one fifth of the US population.

cra infographic 2019

The Community Reinvestment Act in Rural America

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The Community Reinvestment Act (CRA), adopted in 1977, has been a boon to urban community development. How does it work in rural areas?

homeownership infographic 2019

Homeownership in Rural America

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Rates of homeownership in rural areas are generally higher than in urban areas, but many still face challenges.

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The Digital Divide in Rural America

Broadband internet access and adoption in rural areas lags behind that of metropolitan areas.

rv-may-2018-infographic

Fair Housing in Rural America – By the Numbers

This infographic reveals trends in rural fair housing complaints as reported from HUD’s FHEO filed cases data, including a look at the number of complaints per year, geography, and the most prevalent complaints by county.

American and Alaska Native (AIAN) Communities at a Glance Infographic

American and Alaska Native (AIAN) Communities at a Glance

A look at the geographic distribution and unique mortgage lending experiences of American and Alaska Native Communities.

Ruralities: The Changing Face of Rural America

Ruralities: The Changing Face of Rural America

A set of maps demonstrate the ways rural America’s demographics and housing are changing.

The Complicated Picture of Rural Homelessness

The Complicated (& largely unknown) Picture of Rural Homelessness (Infographic)

It is often difficult to quantify the number of homeless people who live in rural areas. Here is a look at some of the information we know about this vulnerable population.

rvsummer2015-infographic Page 2

Celebrating 50 Years of helping families help themselves.(8.5″ X 11″ printable pdf)

Celebrating 50 Years of helping families help themselves.(25.5″ X 11″ original document)

Celebrate the accomplishments of USDA’s Self-Help housing program during the 50 years since its founding.

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Mortgage Lending and Access in Rural America

Rural communities have different experiences when it comes to accessing and using mortgage markets. This infographic provides a window into some of those experiences.

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Poverty in Rural America

Approximately 45 million Americans, or 15 percent of the population, had incomes below the official poverty rate in 2012. In rural America, the poverty rate is above 17 percent with more than 10 million people living in poverty.

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The housing crisis and its wake in rural America– (Interactive Prezi)

What was the impact of the housing crisis in rural America?

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Children & Youth in Rural America – (Interactive Prezi)

aging-rural-america-map

An Aging Rural America (jpg)
MAP – A Demographic Portrait of Seniors in Rural America

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

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Updated: December 18, 2017

FHFA Publishes Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Market Plans

The Federal Housing Finance Agency (FHFA) has published Fannie Mae’s and Freddie Mac’s Underserved Markets Plans for 2018-2020 under the Duty to Serve program. The Plans become effective January 1, 2018.

Fannie Mae’s Underserved Markets Plan

Freddie Mac’s Underserved Markets Plan

HAC Comments on Duty to Serve Underserved Market Plans – July 10, 2017

The Housing Assistance Council (HAC) appreciates the opportunity to comment on Fannie Mae’s and Freddie Mac’s Duty to Serve Underserved Markets Plans for Rural Markets. As a strong advocate for the Duty to Serve provisions of the Housing and Economic Recovery Act of 2008, HAC appreciates the time, effort, and resources FHFA, Fannie Mae, and Freddie Mac have undertaken to develop these underserved market plans. The core of HAC’s work for over four decades has been rural and underserved communities. HAC understands the complexities and difficulties of working in these communities. HAC also understands the promise and possibility of Duty to Serve to affect real and measurable change in these long overlooked and largely forgotten communities and people. We appreciate that FHFA and the Enterprises have not forgotten them, and we look forward to assisting you and the Duty to Serve effort generally to achieve its mandate to improve liquidity and access to affordable housing in underserved markets.

Given its organizational focus on rural housing, HAC focused largely on the Rural Markets component of the plans. HAC presents comments on each Enterprise’s plan separately. After the Enterprise-specific comments, HAC presents general comments and suggestions to the Enterprises and FHFA on issues of rural multifamily housing and preservation.

Read HAC’s full comments.

Fannie Mae Rural Purchase Activity, 2013-2015

dts-fannie-mae

Freddie Mac Rural Purchase Activity, 2013-2015

dts-freddie-mac

The Federal Housing Finance Agency issued a final rule to implement the Duty to Serve provisions which require Fannie Mae and Freddie Mac to serve three specified underserved markets – manufactured housing, affordable housing preservation and rural housing – by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low- and moderate-income families.

Visit FHFA.gov/DTS for the press release, final rule, fact sheet, public listening session details, timeline and more.

HAC Will provide a summary of the Duty to Serve Rule soon.

Stakeholder Webinar

FHFA will provide a high-level overview of the final rule and answer stakeholder questions via webinar on Monday, Dec. 19 at 2 p.m. ET.

You may submit questions in advance by emailing DutyToServeStakeholders@FHFA.gov with “webinar question” in the subject line. Please submit your questions by COB Thursday, Dec. 15.

The Housing and Economic Recovery Act of 2008 mandates that Fannie Mae and Freddie Mac have a ‘Duty to Serve’ three traditionally underserved markets of:

  • Rural Housing
  • Manufactured Housing
  • Affordable Housing Preservation

The GSEs are tasked with increasing liquidity and investment capital in these markets.

The Federal Housing Finance Agency (FHFA) issued a Proposed Rule on Duty to Serve on December 15, 2015. Comments to the Rule were due on March 17, 2016.

Link to Proposed Rule sent to Federal Register

HAC Resources on Duty to Serve

HAC Comments on Proposed Duty to Serve Rule – March, 17 2016

HAC Comments on Proposed Duty to Serve Rule – July 22, 2010

HAC Comments on Duty to Serve Advanced Notice of Rule Making – September 18, 2009

HAC Webinar on Duty to Serve

The Housing Assistance Council (HAC) convened an interactive e-learning experience to assist housing providers and policymakers better understand the Duty to Serve Rule, and what it may mean for Rural America. The session was also intended to help inform comments to the Duty to Serve Rule.

Introduction | Power Point Presentation (22 MB) |Webinar Recording

Additional Resources on Duty to Serve

Interactive Map of Proposed Duty to Serve Rural Area

screen-capture-of-mapping-rural-america map

HAC’s Rural and Small Town Typology Database – Technical Documentation

Map of HAC’s Recommended Changes to FHFA Proposed Rural Area

DutyToServeMap FHFA HAC Recommended Changes

Map of GSE Loan Activity in Rural Areas

GSE Activity 2012 2014 Map

Map of FHFA Proposed Rural High-Need Areas and Persistent Poverty Counties

High Need Persistent Poverty Map

List of Suburban Tracts in FHFA Proposed Duty to Serve ‘Rural Areas’

List of Rural and Small Town Tracts Omitted From FHFA Proposed Duty to Serve ‘Rural Areas’

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50 Years for Rural America

Over 50 years HAC has worked in every U.S. state and the territories. Learn more about what our work means for rural communities.

Board Portal

Housing Assistance Council   |  1828 L Street. N.W., Suite 505, Washington, D.C. 20036
(202) 842-8600  |  (202) 347-3441  |  hac@ruralhome.org

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