Doing More for Underserved Housing Markets Rural Underserved Market Plan Overview

Disclaimer Fannie Mae’s Duty to Serve Underserved Markets Plan must receive a non- objection from FHFA before becoming effective. The Objectives in the proposed and final Plan may be subject to change based on factors including public input, FHFA comments, compliance with Fannie Mae’s Charter Act, safety and soundness considerations, and market or economic conditions. © 2017 Fannie Mae.  Trademarks of Fannie Mae.

What is the Duty To Serve Rule? A regulation issued in December 2016 by the Federal Housing Finance Agency Driven by the Housing and Economic Recovery Act (HERA) of 2008, which guides our activities at Fannie Mae every day It requires Fannie Mae and Freddie Mac to improve access to mortgage financing for those of modest means in three housing markets posing persistent challenges: Manufactured housing Affordable housing preservation Rural housing

How are we approaching this challenge? We’ve developed a three-year Underserved Markets Plan as required by FHFA, proposing activities to address the housing challenges in each market. Our approach is to: Analyze – Use research and analysis for a data-driven market understanding Test and learn – Execute pilots and evaluating product and program changes Partner and innovate – Listen and work closely with market-based experts Do what we do best – Use the power of the secondary market to attract private capital

Rural Housing: Proposed Actions Work with local and regional lenders, including small financial institutions, to explore ways to provide more liquidity for rural housing credit. Increase our collaboration with non-profit and government entities that support affordable housing in rural areas. Dedicate on-site staff to high-needs rural areas to supplement activities by local- market participants and housing groups. Increase outreach and loan purchases in rural regions. Enhance lending products to increase access to credit for rural families. Increase purchases of rural loans from small financial institutions. Explore Low-Income Housing Tax Credit equity investments in rural markets, with a focus on high-needs regions and populations.

Rural market: Combined high-needs rural areas Under the DTS rule, a colonia must be a community identified under a federal, State, tribal, or local program. Colonia information shown on the map above is courtesy of the State of Texas and the University of New Mexico.

Public input period on draft Plans 5/8 – 7/10 Planning timeline 2017 2018 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Public input period on Proposed Evaluation Guidance Fannie Mae submits draft Plans to FHFA Public input period on draft Plans 5/8 – 7/10 Evaluation Guidance issued 8/2 Fannie Mae revises draft Plans as appropriate FHFA Non-Objections to Plans issued Plans Effective Dates subject to change. The blue boxes above indicate the months in which certain activities are expected to occur. They are not representative of the exact start and end date for the activity within a month or within months.

Duty to Serve: How can you help? Take action—provide comments on our plan by July 10, 2017! We encourage you to review and provide feedback on our proposed Underserved Markets Plan at www.fhfa.gov/duty-to-serve during the public comment period. Look for opportunities to help us implement our plan in 2018 and beyond: Engage and innovate with Fannie Mae representatives and industry partners Support future research, outreach, and pilots We welcome your ideas and creativity!

Where can you get more information? fanniemae.com/dutytoserve www.fhfa.gov/dts

Duty to Serve Overview— Rural Markets

Rural Markets Plan Overview Perform and publish foundational research to build broader understanding of opportunities in rural markets generally and for high needs areas and populations Develop our platform and invest in LIHTC equity to support rural markets and high needs areas and populations Address the USDA 515 maturing mortgage crisis through new execution development in support of small properties and high needs areas and populations Explore opportunities in the Single Family Rental (SFR) market Explore opportunities to grow support for unsubsidized small rural properties