Duty to Serve Shared Equity Homeownership Certification for Fannie Mae

What do I need to complete the application?
You’ll need to be able to reference and upload the legal document(s) (often a ground lease or deed restriction) that your program and homebuyers use to agree to resale and program restrictions in your shared equity homeownership program. You’ll also need to provide some contact information and basic organizational information, and answer a question about your portfolio size.
 

How long does the application form take?
It typically takes as few as 10 minutes per program response, especially if the submitter is familiar with the legal documents used between homeowners and the program to secure ongoing affordability and programmatic rules (e.g., the ground lease, deed restricted covenant, etc.). You should have a template of the legal document(s) accessible for reference and upload while you submit your application.
 

We have more than one program that I think qualifies, do I need to fill out the form multiple times?
No. You can enter your contact information once, then you’ll have the option to enter multiple shared equity homeownership programs within the form.
 

I’ve already submitted one program, how can I add another?
The system pulls up records based on the entity listed on the legal document. So if you want to add a program (or see if a program has been submitted to date), just fill out the initial contact information and previously submitted programs will appear. You will then have the option to add more programs.
 

I started the form, but didn’t complete it. What now?
If you clicked “next” after verifying your contact information but didn’t complete the form, check your spam folder. After a few hours, you should receive an email with a link to complete the application. You may also enter your contact information again to start a new application, or reach out to [email protected] if you’re not sure.
 

What if my organization doesn’t show up on the list?
Be sure to check for variations and abbreviations. If you still don’t see it, please click the box right under the field next to “My organization is not found in the above list.” A new field will appear; type in your organization’s name.

My program isn’t a community land trust, does this still apply to us?  
Yes! Community land trusts are one model of shared equity homeownership; however, many other nonprofit and municipal programs qualify. For more details or educational materials to share with your colleagues, check out these two PDFs: What is a Community Land Trust?  and What is Shared Equity Homeownership?  

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Check that your browser is updated to the latest version. We also recommend using a browser other than Microsoft Edge, if possible.
If you still need help, reach out to [email protected].
 

I require accommodation in order to complete this form.
Please contact [email protected] for assistance.
 

What are the Terms and Conditions that I agree to upon submitting the application?
You can see the Terms of Use here.
 

Have another question?
Feel free to reach out via [email protected]

My program already has solid lending partnerships. Should I still complete this application?
Yes, we think so! Those lenders may already be selling their loans to Fannie Mae on the secondary market, and getting on this list will make their lives easier. It can also open up new, quality lending opportunities for your homeowners, which is always a good thing.
 

My program is just getting started. Can we apply?
If your legal agreement between the program and homeowners (often a ground lease or deed restriction) is finalized, you can submit the application. There is no requirement to have existing units when you apply. But it is important that you submit final legal documents, as you will be responsible for providing updated documents if and when they change.
 

I think that this is a good idea, but I need some help explaining it to my colleague/director/board. What can I use?
We suggest making sure that they’re familiar with the secondary mortgage market, and explaining that, with the Duty to Serve rule, the government-sponsored enterprises (GSEs, or Fannie Mae and Freddie Mac) are required to support underserved markets, including shared equity homeownership. This certification opportunity is one strategy used to increase lending access for programs like yours. You can share this 2-minute video or this PDF to help make the case: The Duty to Serve Rule Increases Access to Mortgage Financing. 

Why does the form ask if the organization listed is the same as the entity on the legal document?
We ask this question to understand whether the organization listed in your initial contact information is the same as the organization named in the legal agreement between the homeowner and the program. This question does not seek to understand if your funder(s) are named within your legal documents—only whether the legal agreement is signed by the homeowner and your organization, or a different organization. This may be the case if a nonprofit organization is paid to administer, steward, or provide monitoring and compliance for a municipal or other nonprofit’s portfolio of affordable homeownership units.
 

How do you define “program”?
In the case of this certification, it’s important that any unit within the named program has a legal agreement with all of the same responses to the questions in Section C: Certification. We understand that organizations conceptualize this differently; to provide some clarity, we offer some examples:

• A community land trust offers a buyer-driven program, has developed its own homes, and has developed homes in partnership with its local Habitat for Humanity Affiliate. It uses the same legal document for all three ways of bringing units into its portfolio. In this case, for the certification, it would be acceptable to identify this as one program or three programs. What’s important is that your homeowners and program staff use the same program name you submit here when speaking with lenders.
   
• A nonprofit organization uses a deed restriction for some projects and a ground lease for others. Both legal documents have terms where the answers in Section C are all the same. In this case, for certification, it would be acceptable to identify them as one program or two programs. What’s important is that your homeowners and program staff use the same program name you submit here when speaking with lenders.
   
• In a slightly different scenario, another nonprofit also uses a deed restriction and a ground lease. However, some of the answers in Section C vary between the two documents. Even if you internally conceptualize these as the same program, it is important to identify them separately in this application form.
   
• A municipality has negotiated with developers over the years to deliver units with various deed restrictions. The deed restrictions’ terms vary by development, and answer to the questions in Section C vary. It is important in this case that each development be submitted separately. We would also recommend developing a template legal document and potentially reconceptualizing these units as a standard “program” to avoid confusion moving forward.