The
The proposed rule, released today, would also revise the definition of 'rural area' in the regulation to include all colonia census tracts regardless of their location. These changes would make activities by
According to
FHFA has identified two main challenges that have hindered Fannie and Freddie's activities in colonias. The first challenge is an operational one that prevents the enterprises from easily identifying and verifying duty to serve-eligible loan purchases and outreach activities in colonias. The second challenge is related to the ability of the duty to serve program to effectively target households in colonias due to their under-inclusion in the regulation's current rural area definition. As a result, the number of single-family and multifamily loan purchases in colonias that received duty to serve credit has been 'limited or non-existent,' according to FHFA's proposed rulemaking notice.
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