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FHFA strengthens Duty to Serve eval criteria
The Federal Housing Finance Agency announced yesterday it is strengthening the evaluation criteria of the Duty to Serve (DTS) Underserved Markets program through updated Evaluation Guidance for Fannie Mae and Freddie Mac (the Enterprises). The updated guidance will ensure the Enterprises' DTS programs have a significant impact in underserved communities.
The revised guidance—which takes effect with the 2021-2023 plan cycle—establishes four new ratings to describe the GSEs’ performance, replacing the previous five-tiered ratings framework. It also establishes higher scoring expectations and increases the threshold for determining compliance from 70% to 80%. In addition, the revisions require a minimum concept score of 30 for each objective, rather than the previous requirement that the concept scores of all objectives average a 30, in order for a proposed plan to receive a non-objection from FHFA.