FHFA proposes overhaul to Duty to Serve Underserved Markets—comments due July 24, 2026

The Federal Housing Finance Agency (FHFA) has published a proposed rule that would rescind and replace its current “Duty to Serve Underserved Markets” regulation governing Fannie Mae and Freddie Mac. FHFA says the goal is to support the Enterprises’ statutory Duty to Serve obligations while reducing administrative burden and sharpening accountability.

For readers, the urgency is timing: FHFA set a public comment deadline of July 24, 2026, and later issued a June 26, 2026 correction stating the comment due date remains July 24.

What “Duty to Serve” covers and why FHFA regulates it

Fannie Mae and Freddie Mac help set the secondary-market rules that determine what mortgage credit looks like across the U.S. In particular, FHFA’s Duty to Serve framework is intended to push mortgage financing toward borrowers and communities that the market does not reliably serve on its own.

Under the proposed changes, the “underserved markets” in scope remain centered on three areas: manufactured housing, affordable housing preservation, and rural housing for very low-, low-, and moderate-income families.

What FHFA proposes to change

FHFA’s notice would replace the existing Duty to Serve Underserved Markets regulation with a new framework. The proposal focuses on three connected changes:

1) Duty to Serve Plans
FHFA would change what must be included in the Enterprises’ Duty to Serve Plans and how those plans are structured.

2) Monitoring and evaluation
FHFA would revise how it monitors results and evaluates performance as part of its oversight.

3) Ratings and accountability
The proposal would introduce a more structured approach to assessing performance. FHFA describes market-level numeric ratings that would be published in the FHFA Annual Housing Report. Crucially, FHFA proposes that a market-level rating of “1,” “2,” or “3” would constitute compliance with Duty to Serve, while “4” or “5” would constitute noncompliance.

Spotlight: manufactured housing and the “presumption of affordability” idea

One of the most consequential parts of the proposal relates to how manufactured housing affordability would be handled. FHFA describes a shift toward a “presumption of affordability” approach, replacing prior tests it proposes to replace.

Importantly, this does not mean every manufactured housing outcome becomes automatically “affordable.” FHFA’s proposal is tied to determinations described in the rule text, and it would still require implementation through the Enterprises’ plans and FHFA’s evaluation process after comments are reviewed.

Who should care—and how this could affect day-to-day outcomes

This rulemaking matters for several groups:

• Borrowers who use the Enterprise mortgage system—because Duty to Serve plans can influence which financing pathways get built, marketed, and underwritten.
• Manufactured housing community stakeholders (operators and related organizations), since affordability standards are a core part of how access to capital can work.
• Preservation nonprofits and owners involved in maintaining affordable housing supply, since the affordable housing preservation market is explicitly in scope.
• Lenders and loan-sellers that rely on Fannie Mae and Freddie Mac purchase activity and secondary-market expectations.
• Rural stakeholders who depend on stable secondary-market financing options for very low-, low-, and moderate-income borrowers.

Because this is a proposed rule, any effects on mortgage credit would be indirect and depend on what FHFA finalizes after the comment period—and how the Enterprises then update their Duty to Serve plans.

What to watch next (and how to respond)

The immediate action point is the public comment window: FHFA’s deadline for responses is July 24, 2026. FHFA also issued a June 26, 2026 correction that confirms the same comment due date.

After comments are reviewed, FHFA would be expected to move toward a final rule. Readers who work in or closely follow manufactured housing, affordable preservation, or rural lending should also watch how FHFA describes the market-level rating system and how it will appear in the Annual Housing Report.

Sources

• FHFA proposed rule page (Enterprise Duty to Serve Underserved Markets Amendments Proposed Rule) — includes summary + July 24, 2026 comment deadline
• Federal Register proposed rule text (FR Doc. 2026-12750; 91 FR 37848) — RIN 2590–AB64

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