The Federal Housing Finance Agency (FHFA) offers a 3-minute video providing a simple explanation of Fannie Mae and Freddie Mac's "duty to serve" underserved markets. FHFA oversees Fannie Mae and Freddie Mac, two government sponsored enterprises (GSEs) required by law to support mortgage lending in three underserved markets: affordable housing preservation, rural areas, and manufactured homes.
FHFA released its final rule regarding the GSEs’ duty to serve underserved markets on January 14 (see Memo, 12/19/16). The rule requires the GSEs to submit three-year Underserved Market plans detailing the scope of activities and objectives they will pursue to increase liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing for very low, low, and moderate income families who reside in the three underserved markets.
The video is at: http://bit.ly/2kNzVHR