The FHFA has proposed a major regulatory shift, replacing its current Duty to Serve framework with an outcome-based model. The new approach would alter how Fannie Mae and Freddie Mac support critical housing segments, including manufactured housing, affordable housing preservation, and rural housing.
The proposal targets specific underserved markets. For manufactured housing, the FHFA is pushing the GSEs to embrace chattel loans—personal property loans for mobile homes that often lack traditional real estate backing.
Affordable housing preservation remains a central focus under the proposed rules. The outcome-based structure aims to give the GSEs greater flexibility in meeting their obligations while ensuring measurable results.
The third pillar, rural housing, continues to be a priority. The FHFA's proposed changes seek to address persistent gaps in access to mortgage credit in rural communities.
The counter argument cautions that shifting to an outcome-based model could reduce accountability without clear, enforceable metrics. Critics worry the GSEs may prioritize easier targets over genuinely underserved borrowers.