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Financial Services Law Insights and Observations

FHFA postpones duty to serve adjustments

Federal Issues FHFA Fannie Mae Freddie Mac GSE Covid-19

Federal Issues

Recently, FHFA announced a postponement of Fannie Mae and Freddie Mac’s Duty to Serve (DTS) Underserved Markets Plan submissions for 2021-2023, due to the uncertainty caused by the Covid-19 pandemic. Specifically, FHFA is allowing unlimited modifications for the 2020 plan year, and is requiring the Enterprises to submit both 2020 modification requests and proposed 2021 activities and objectives by September 15. The 2021 activities and objectives will be structured as a one-year extension to the previous 2018-2020 plans. FHFA also released (i) a summary table indicating Evaluation Guidance provisions that apply in 2021; (ii) revised Evaluation Guidance 2020-4a, which includes special exceptions that will apply in 2020 and 2021; and (iii) special procedures the Enterprises will follow to submit their 2020 modifications and 2021 plans.

FHFA notes it will seek feedback on the proposed 2021 activities and select proposed 2020 modifications during a consolidated public comment period beginning in September.

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