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Origination & Underwriting Webinar Training: Affordable Housing Programs New to Desktop Underwriter®

Origination & Underwriting Webinar Training: Affordable Housing Programs New to Desktop Underwriter®
Thursday, October 1st at 11:00 Pacific/2:00 Eastern (free)

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Fannie Mae has long been able and willing to purchase first mortgage loans to low- and moderate-income buyers in shared equity homeownership programs, but starting August 15th, lenders are able to underwrite these loans through Desktop Underwriter® (DU). Automated underwriting reduces the burden on loan origination and lessens the risk for lending institutions. Whether you’re already lending to these types of buyers or want to start, you should attend this webinar training.

So what are “shared equity homeownership programs”? They are special types of affordable housing programs in nonprofits and governments, which provide homes that remain affordable to lower-income families, sale after sale. Shared equity homeownership programs include Community Land Trusts, which are typically nonprofits (see Fannie Mae’s Single-Family Selling Guide section B5-5.1-04 Community Land Trusts), and Below Market-Rate programs (BMRs), which are typically government-based inclusionary housing or zoning programs that include resale restrictions (see Fannie Mae’s Single-Family Selling Guide  section B5-5.3 Loans with Resale Restrictions). There are roughly 225 CLTs and 500 inclusionary housing programs across the country.

Worth emphasizing, the loans originated to buyers in these affordable programs tend to be for households with incomes well-below traditional down payment or closing cost assistance programs. Hence, the CRA benefits can be substantial, and lenders can access a market of ready-buyers who have been previously underserved or untapped by their institutions.

In this training, you will receive:

  • An orientation to the sections of the Fannie Mae Selling Guide you should apply to loans for borrowers in various types of shared equity homeownership programs.
  • Clear instructions on how to review programs before lending, calculate loan-to-values, and obtain accurate appraisals.
  • A guided tour of how to originate these loans through DU.

Want to learn more? View Fannie Mae’s:

Community Land Trust Fact Sheet

Resale Restrictions Fact Sheet

Housing Industry Forum Article

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