Posted on Monday, January 18, 2010
Fannie Mae ran an apartment financing program for 20 years. This new idea is along those lines. A developer would go to a FNMA designated underwriter (usually a bank). The bank would then recommend a loan to FNMA. FNMA would guarantee the loan in return for an annual premium paid by the developer. The bank would guarantee a portion and also be paid a fee. This enables the loans to be resold.