The Duty to Serve (DTS) mandate, established under HERA 2008, requires Fannie Mae and Freddie Mac to support lending in three underserved market areas: manufactured housing, affordable housing preservation, and rural housing. Fannie Mae's Duty to Serve plan outlines specific activities and targets for each area.
Manufactured Housing Commitments
Fannie Mae's DTS plan for manufactured housing includes commitments to purchase loans on HUD Code manufactured homes titled as real property and expansion of the MH Advantage program. MH Advantage loans finance manufactured homes that meet specific construction, architectural, and site criteria and offer conventional pricing without the typical manufactured home pricing adjustment.
Rural Housing
Fannie Mae's rural housing DTS commitments include purchasing mortgages on properties in high-needs rural regions and supporting loan products that address barriers to lending in these areas. High-needs rural regions are defined by FHFA criteria including poverty rates, limited financing access, and persistent population loss.
What This Means for MLOs
DTS commitments create product development and program expansion in markets that can be underserved. MLOs working with manufactured housing buyers and rural borrowers should stay current on Fannie Mae MH Advantage and HomeReady rural expansions, as these programs can offer meaningful pricing advantages over conventional alternatives.
Aria on vicariointel.com covers Fannie Mae DTS programs including MH Advantage eligibility and rural lending options. Ask about current program details before citing them to a borrower.
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