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

What SB 785 changes (starting Sept. 1, 2026)

SB 785 sets statewide requirements for how municipalities must handle installation of new HUD-code manufactured homes:

• By default, the city must permit it: When an application is filed, the municipality “shall permit” installation in areas it determines appropriate, including subdivisions, planned unit developments, single lots, and rental communities or parks.
• A written denial deadline: The application is “considered to be granted” unless the municipality denies it in writing within 45 days.
• At least one residential zoning path must allow by-right placement: If the city has zoning, it must allow by-right installation within at least one residential zoning classification/district (and the city must indicate the qualifying areas on any comprehensive zoning map it has).
• Limits on requiring a special permit: SB 785 restricts cities from requiring a specific use permit (or similar) for a qualifying new HUD-code manufactured home, when the home is built to applicable federal/state requirements and the city does not require that same kind of specific-use permit for other residential property in the same zoning classification.

SB 785’s effective date is September 1, 2026.

What Lubbock’s Planning & Zoning agenda says it would amend

On July 2, 2026, the Planning & Zoning Commission agenda included an UDC amendment public hearing item to amend UDC Sections 39.02.016 and 39.2.004.a.3 to allow “Manufactured Homes” as a permitted use in accordance with SB 785, effective September 1, 2026.

The agenda also states the Planning & Zoning Commission makes a recommendation and that City Council has final authority for UDC approval.

Why residents, buyers, and builders should care

For people considering or relocating to a qualifying new HUD-code manufactured home, SB 785 is intended to reduce how much discretion local zoning can apply to siting approvals—especially around by-right placement and what permit steps may be required.

Lubbock’s UDC manufactured-home procedures already reflect some SB 785-style protections for new HUD-code manufactured homes, including the 45-day written denial framework and a stated approach regarding private deed restrictions enforcement.

What to watch next

Because the Planning & Zoning Commission vote is described as a recommendation in the agenda packet, the next key step is whether and how City Council adopts the UDC amendment. The practical stakes track the statewide September 1, 2026 start date.

Sources

• City of Lubbock — Planning & Zoning Commission Agenda (July 2, 2026) (UDC amendment packet)
• Texas Legislature Online — SB 785 (enrolled bill text)
• City of Lubbock Code (Ecode360) — UDC Division 2.4 (Manufactured home standards)