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Housing Finance Reform

The current mortgage finance system is dominated by two congressionally-chartered companies, Fannie Mae and Freddie Mac. These companies support the mortgage finance system by ensuring mortgage lenders have a stable supply of funds to lend to homeowners. 

​Among Fannie Mae’s and Freddie Mac’s most critical functions are setting and managing the standards lenders use when extending mortgage credit. Lenders will generally not extend mortgage credit where either the borrower or the property being purchased does not meet Fannie Mae and Freddie Mac standards. 

​Fannie Mae and Freddie Mac have developed lender standards for community associations. Continuation of Fannie Mae and Freddie Mac community association standards is the critical issue at stake for community associations and association homeowners. 

Lenders look to Fannie Mae and Freddie Mac community association standards to verify the association is in stable condition, common property is insured, and the association’s governing documents meet certain standards. These standards ensure that buyers have access to mortgage credit on the best possible terms while also promoting the stability of community associations nationwide. 

CAI calls on the Administration and Congress to ensure continuity of community association standards in a new mortgage finance system so buyers have access to mortgage credit and continue to benefit from national, evidence-based community association standards.​​​


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