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