Fannie Mae and Freddie Mac report mixed duty-to-serve performance

The Federal Housing Finance Agency (FHFA) released its 2025 annual housing report, revealing mixed results for Fannie Mae and Freddie Mac regarding their duty-to-serve plans in underserved markets. While both enterprises exceeded targets for investments in low-income housing tax credits for rural housing, they faced challenges in other areas.

Fannie Mae received high satisfactory ratings for manufactured housing and affordable housing preservation, but a low satisfactory rating for rural housing. The company missed its own targets for all objectives in the manufactured homes market, achieving only 65% of its goal for acquisitions of manufactured housing communities with pad lease protections. Fannie Mae also fell below target on three of its four rural housing objectives.

Freddie Mac fell short of targets for purchasing loans for manufactured homes titled as real property and for rural housing in high-needs regions. Additionally, Freddie Mac achieved only 69% of its target for buying rural housing loans from small financial institutions.

The FHFA also noted preliminary findings of “patterns of disparities” in interest rates charged to minority borrowers in 2024. These findings have been referred to regulatory and enforcement agencies, though the report did not specify which enterprise was involved or the exact nature of the disparities.