
BACKGROUND: The purpose of this application is
to help create more lending options for homeowners in your program by
indicating to lenders that your program meets Fannie Mae’s interpretation of
the Duty to Serve definition of shared equity homeownership. (Learn more about
Duty to Serve here.)
Why does it matter if my program meets this definition? Fannie
Mae and Freddie Mac are working to increase mortgage purchase activity for
loans to buyers in shared equity programs. Currently, lenders must determine if
your program meets the Duty to Serve requirements for every loan they purchase
from the program, which can be time and resource-intensive for both parties. Fannie
Mae is streamlining the process by compiling a list of programs that meet the
shared equity homeownership definition to share with lenders. This is your
opportunity to get your program(s) on that list and minimize the burden on you
and your lenders to provide programmatic information at closing.
What is this application for? Completing this
application now may place your program on Fannie Mae’s list of Duty to
Serve-certified shared equity homeownership programs through 2024. The
application consists of contact information, six key questions about program
terms in your legal documents, and a few other details needed for follow-up. If
your program meets the Duty to Serve definition of shared equity homeownership,
it should significantly reduce your administrative workload at each closing
with Fannie Mae partner lenders during this period. You’ll be reminded annually
to re-submit this application if your program has changed in a relevant way,
and you’ll be asked to renew your submission at the beginning of the next
three-year period in 2025.
INSTRUCTIONS: Please provide your contact
information below, review it for accuracy, and click “Submit and Begin
Application.” After filling in your contact information, the system will pull
up any previously completed applications for the entity on your legal
documents. If no programs appear—or you would like to add additional programs—you
will be able to fill in information about your program. You should have your
legal document(s) between your program and homeowners available, both for
reference and because you will need to upload a template or representative
legal document.
You will not be able to save and re-open your application,
so please be prepared to complete it in one sitting. Most practitioners are
able to submit one program in as few as 10 minutes.