ACU: FHFA's Duty To Serve Overhaul Could Expand Credit Union Lending
By CU Today Staff —
WASHINGTON--The Federal Housing Finance Agency (FHFA) has issued a proposed rule to rescind and replace Duty to Serve (DTS) regulations for Fannie Mae and Freddie Mac. Currently, the DTS regulations make both obligated to support mortgage financing for underserved housing markets, Americas Credit Unions explained.
The proposed rule aims to formally overhaul the current DTS requirements and create a new framework for Fannie Mae and Freddie Mac’s obligations. It seeks to give the enterprises more flexibility to fulfill their statutory duty to serve underserved markets, ACU said.
Additionally, the proposed rule would allow Fannie Mae and Freddie Mac to design and implement new products, programs, and strategies. For credit unions, the proposed rule could create new opportunities to expand mortgage lending and secondary market access for traditionally underserved borrowers, ACU noted.
Originally reported by CU Today.