OPPORTUNITY TO COMMENT ON GSES DUTIES TO SERVE UNDERSERVED MARKETS ENDS SEPT. 18

Wednesday, September 16, 2009 - 1:30am

The comment window closes Friday for the public to submit input to Federal Housing Finance Agency (FHFA) about government sponsored enterprises (GSEs) Fannie Mae’s and Freddie Mac’s duties to serve underserved markets. The Housing and Economic Recovery Act of 2008 (HERA) established a duty for the GSEs to serve three underserved markets—manufactured housing, affordable housing preservation and rural areas—in order to increase the liquidity of mortgage investments and improve the distribution of investment capital available for mortgage financing in those markets. The FHFA is required to establish a manner for evaluating the GSEs compliance with the new law. To assist in its rulemaking for this purpose, the FHFA invited public comment on the characteristics and types of GSE transactions and activities that should be considered, and how such transactions and activities should be evaluated and rated. Comments will be accepted through September 18.

The GSEs and their participation in the housing markets will be among the many hot topics covered at the 16th Annual Affordable Housing Conference on October 1-2 in San Francisco.
Michael J. Novogradac, CPA, will also discuss this proposal in the next Tax Credit Tuesday Podcast; tune in on September 22 to learn more.