B5-4.2-01, Native American Conventional Lending Initiative (NACLI) (06/26/2012)

As part of Fannie Mae’s commitment to offering conventional loan products to address special housing needs of the underserved, Fannie Mae developed its set of Native American conventional Housing Initiatives.

Through these initiatives, Fannie Mae purchases conventional mortgages that are made to Native Americans.

Any lender that is interested in participating in NACLI must obtain separate approval from Fannie Mae.

Upon approval, the lender will obtain the applicable set of terms and conditions that may vary for the specific tribal community.

Tribes that have jurisdiction over lands restricted to tribal members are eligible.

Before any lending may take place, a tribe’s ordinances must be reviewed to ensure that there is appropriate support for mortgage lending. This includes Fannie Mae’s confirmation that the tribe has appropriate ordinances involving such issues as the recording of mortgages, resale, lien priority, foreclosure, and eviction.

A lender must report SFC 221 for a mortgage originated under NACLI when it delivers a mortgage originated under Fannie Mae’s Native American Housing Initiatives.

In addition, the lender should report all other applicable special feature codes that are needed to describe other special mortgage characteristics.