In December 2016, the Federal Housing Finance Agency (FHFA)
issued the Duty to Serve Underserved Markets rule, as required by
the Housing and Economic Recovery Act (HERA) of 2008. The Duty to
Serve rule directs Fannie Mae to improve access to mortgage
financing for those of modest means in three housing markets
posing persistent challenges—and significant opportunities.

Manufactured housing (MH) – Exploring innovative financing
options for one of the largest affordable housing opportunities.
This includes support for single- and multi-width MH lending, as
well as MH Advantage®.

Affordable housing preservation – Helping keep established
properties available as low-cost housing. This includes support for
energy efficiency and shared equity.

Rural housing – Supporting the financing of housing for targeted
high-needs rural regions and populations. This includes support for
Native American populations, small financial institutions (SFIs),
and other lending in rural areas and persistent poverty regions.

Duty to Serve loan eligibility
Under the Duty to Serve rule, mortgage loans supporting Duty to Serve must meet certain requirements beyond those in
the Selling Guide. In order to be considered an eligible Duty to Serve loan, the loan must meet requirements applicable to
all Duty to Serve mortgage loans and all other requirements specific to the type of mortgage loan being sold.

Duty to Serve requirements

For all Duty to Serve loans:

• The total annual qualifying income must be ≤ 100% of the area median income (AMI) for the property’s location.
Lenders must refer to the AMIs that Fannie Mae uses in Desktop Underwriter® or our AMI lookup tool and may
not rely on other published versions (such as AMIs posted on huduser.org).
• The property must be an owner-occupied, principal residence.
• The loan must be a purchase money transaction or a limited cash-out refinance transaction

Additional requirements for manufactured housing loans

In addition to the requirements for all Duty to Serve loans, all MH loans must be secured by manufactured
homes titled as real property.