FHFA Strengthens Evaluation Criteria for DTS program for Fannie, Freddie

Wednesday, March 11, 2020 - 2:15PM

The Federal Housing Finance Agency (FHFA) today announced that it is strengthening the Duty to Serve (DTS) Underserved Markets evaluation criteria used to evaluate Fannie Mae and Freddie Mac. The update includes the establishment of four ratings to describe Fannie and Freddie’s performance, replacing the former five-tiered ratings; a requirement that each objective receive a 30 score, rather than all objectives average a 30 score in order for a plan to receive a non-objection from the FHFA; and an increase in the threshold for compliance from a score of 7 to 8. The DTS framework influences a substantial amount of low-income housing tax credit equity that Fannie and Freddie are permitted to invest annually.

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