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Fannie Mae Incorporates Loans to Shared Equity Homebuyers into Desktop Underwriter ®

Fannie Mae has been a strong and committed partner to shared equity homeownership programs. Supporting these programs even further, Fannie Mae just announced the incorporation of single-family mortgage loans to shared equity borrowers into their automated underwriting system, Desktop Underwriter ®. This will go into effect on August 15th. Now, automated underwriting may be done for homebuyers in community land trusts using ground leases and homebuyers in inclusionary housing programs (or other shared equity programs) that use deed-restricted covenants.

Our hope is that these changes will result in a growing number of lenders and lending institutions that will originate mortgages and refinance loans for buyers in shared equity homeownership programs.  Automated underwriting substantially reduces the administrative burden for lenders and does not require that the lending institution provide reps & warranties, which are required on manually underwritten loans.

Go to and view:

1)      Community Land Trusts (CLTs) Fact Sheet updated

2)      Community Land Trust Checklist new

3)      Resale Restrictions Fact Sheet updated

Practitioners should immediately pass along this information to their partnering mortgage lenders & we ask that you please e-mail Emily Thaden the names of the lending institutions to which you have forwarded this information. This will help the Network and Fannie Mae track dissemination. For community land trusts or inclusionary housing programs seeking additional mortgage lending partners, it is advised that you share this information with prospective partners. Any questions or comments should be directed to Emily Thaden, Research & Policy Manager at or 503-493-1000 ext. 3.

We would like to thank the entire Fannie Mae team for working to increase access to mortgage financing for the low- and moderate-income buyers that our members serve. The National Community Land Trust Network has forged a productive and collaborative partnership with Fannie Mae, and we plan to continue working together to promote access to credit for shared equity buyers and homeowners.

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