The Federal Housing Finance Agency issued a proposal Tuesday to encourage Fannie Mae and Freddie Mac to increase mortgage financing in underserved housing markets.
The plan would enforce a part of the Housing and Economic Recovery Act of 2008, establishing that both GSEs serve low- and moderate-income families in the manufactured housing, affordable-housing-preservation and rural markets.
Because both companies entered into conservatorship in September 2008, the proposal specifies that neither mortgage financing giant will be allowed to adopt new lines of business to fulfill the housing goals. They will, however, be allowed to increase the liquidity of mortgage investments and improve distribution of investment capital.
Comments on the rule are due 45 days after Federal Register publication, which is expected soon.