Fannie Mae-No Politics (FNMA)

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As Part of ‘Duty-to-Serve,’ GSEs Release Details on Chattel Pilots

By Carisa Chappell [e-mail]

Fannie Mae and Freddie Mac Monday afternoon released separate details on a three-year plan to reach underserved markets, including developing chattel loan pilot programs that would bring liquidity to the manufactured housing sector.

Under duty-to-serve rules from the Federal Housing Finance Agency, the GSEs must increase financing in three primary areas: manufactured housing, rural housing and affordable housing preservation for low- and moderate-income families.

Last year, the GSEs were directed by the FHFA to submit plans illustrating how they will support their duty-to-serve requirements. Much of the talk has centered on manufactured housing and whether the use of chattel lending – a loan collateralized by an MH unit that is not secured to real estate – should be considered.

With manufactured housing advocates pushing for greater support from Fannie and Freddie, especially in the form of establishing a secondary market for chattel loans, the FHFA directed the GSEs to explore a pilot program.