Fannie Rolls Out 40-Year Mortgage
Fannie Mae announced the commercial introduction of its 40-year mortgage program for credit unions. The program has been test-marketed by two-dozen credit unions the past two years to determine whether there is a viable demand for the 40-year loan. Fannie Mae announced it is offering the 40-year mortgage to all credit unions through an expansion of its marketing agreement with NAFCU.
Under the expanded deal, Fannie Mae said it will offer the 120 participating credit unions better pricing for fixed-rate loans, including 40-year mortgages for credit unions that deliver a set percentage of their loans to Fannie. Under Fannie's three-year deal with NAFCU credit unions will have access to Fannie's Desktop Underwriter and a variety of loan products, like zero downpayment loans.