The Federal Housing Financing Authority (FHFA) wants mortgage finance companies, Fannie Mae and Freddie Mac, to do more to reach underserved markets, according to reuters.com.
The agency’s proposal would require Fannie Mae and Freddie Mac to change the way they finance manufactured homes, expand lending in rural areas and do more to preserve affordable housing. Notably, the companies could receive credit for treating manufactured home loans like real estate loans instead of personal property or “chattel” loans, which are riskier for borrowers.
“There is a lot of manufactured housing in rural areas as well as coastal areas and retirement communities,” said Ron Haynie, senior vice president at the Independent Community Bankers of America in a NationalMortgageNews.com story. “I am really happy to see FHFA come out with this. It is very important to our members.”
When the federal government bailed out the mortgage purchasers during the financial crisis that started the Great Recession, FHFA was appointed as conservator.
For the full stories, go here: http://www.reuters.com/article/us-usa-housing-mortgages-underserved-idUSKBN0TY26J20151215