Why are Fannie Mae mortgages the only way to refinance into a long-term fixed rate loan on a MACLT home?
There have been extensive negotiations between CLT representatives and Fannie Mae over the past ten years, which resulted in Fannie Mae agreeing to provide mortgage products to CLT homebuyers/homeowners. Fannie Mae includes a “rider” on CLT mortgages that essentially mirror the terms of the standard CLT ground lease, which clearly defines what happens in the event of a foreclosure. To date, we have not been able to reach a national agreement with Freddie Mac, the other very major player in the secondary market. We hope to have an agreement with Freddie Mac negotiated within the next 5 years.
