Is your condominium project on Freddie Mac’s Not Eligible List?

Freddie Mac opened access to the list of condominium and housing projects it categorized as “not eligible status.” Condominiums and housing cooperatives may be placed in this category due to potential noncompliance with lending guidelines. Access is restricted to an authorized representative of a condominium association or housing cooperative.      Read the article…………………………….

Lenders Identify Risks and Opportunities for Condo Lending (FannieMae)

With the U.S. housing market continuing to confront the significant supply shortage of homes for sale, condos may play an important role in narrowing the supply gap of affordable housing options1. While condos represent nearly 10 percent of the mortgage market, they often play a larger role in many metropolitan areas2. Condos also present unique […]

Shedding light on a spate of condo loan rejections

Fannie Mae and Freddie Mac intensified their scrutiny of condominiums after the 2021 collapse of the Champlain Towers South complex in Surfside, Florida, which killed 98 people in one of the worst tragedies of its kind. Shortly after the disaster, the GSEs revised their policies on loans purchased in condo developments, with an aim to […]

Fannie Mae and Freddie Mac to add transparency to condo lending blacklists

The article on the front page of the Miami Herald on Dec. 17, revealed some welcome news for the thousands of condominium communities that have been placed on confidential blacklists by the government-sponsored Fannie Mae and Freddie Mac mortgage buyers and backers behind more than 70 percent of all U.S. residential loans.   Read the article……………………………….

Fannie Mae and Freddie Mac: A New Era of Transparency for Homeowners

In a significant shift towards transparency, Fannie Mae, the Federal National Mortgage Association, has recently announced that it will make its once-secret “Condo Unavailable Projects and Phases Report” accessible to the public. The decision to make this report publicly available reflects a broader industry trend towards transparency, acknowledging the pivotal role that information plays in […]

Florida And Massachusetts Law Firms Unite To Tackle Fannie Mae’s Secret Condo Blacklist

The firms say they are committed to helping condominium and cooperative associations currently on the blacklist, or at risk of being added, navigate this complex issue. Fannie Mae, a government-sponsored enterprise, uses the blacklist to designate properties ineligible for conventional financing, affecting thousands of residents and potential buyers.    Read the article…………………………..  Link to web site […]

Fannie Mae and Freddie Mac to share why some condos are ineligible for loans

Federal loan guarantor Fannie Mae will make its secret “blacklist” of condos it will not finance available to condo associations and unit owners next year.Its counterpart Freddie Mac, meanwhile, will roll out new guidelines by early 2024 that will enable condos ineligible for financing to appeal their status.   Read the article……………………………….

Condo originations ‘streamlined’ through project advisor tool: Freddie Mac

Government-sponsored enterprise (GSE) Freddie Mac on Wednesday announced further enhancements to its Condo Project Advisor tool that are designed to “streamline” such loan originations and to offer lenders “greater security” through a new designation, according to an announcement.   Read the article…………………………..

Condo Column: Forced savings – for a good reason

It’s budget season. That means you have to start worrying about next year. But one thing that should worry you, and which is directly related to your association’s budget, is the fact that Fannie Mae is tightening its requirements for lending.   Read the article……………………………

Condos and Coops are Impacted by Fannie Mae and Freddie Mac Changes

Government backed mortgage lenders, Fannie Mae and Freddie Mac, issued temporary project review requirements relating to significant deferred maintenance in condominiums, co-ops, and similar developments. To assess a project’s eligibility, Fannie Mae and Freddie Mac each promulgated a standardized “Condo Project Questionnaire Form” to obtain information related to significant deferred maintenance, the plan for addressing […]

Condo Column: A Hidden Danger

About two years ago in Michigan, which becomes relevant to New Hampshire by the end of this column, there was damage to a condominium that was covered by the Association’s Master Policy. After the deductible, the check to be paid by the carrier to the Association was $40,000.00. All was going to be good. Then […]

Fannie Mae keeps a secret condo blacklist. Why? (MA)

Shortly after Nicholas Perricone bought his condo in the Financial District on June 30, 2022, he joined the building’s board of trustees. That’s when he began hearing stories of fellow owners who tried to sell their units only to have the deals fall apart at the loan office.    Read the article…………………………

Modernized Lending Standards: New Fannie Mae Requirements in the Wake of the Champlain Towers Tragedy (CO)

Following the tragic collapse of the Champlain Towers South in Surfside, Florida, Fannie Mae took a significant step to modernize lending requirements. These new requirements place a greater emphasis on the property condition and the strength of the community’s reserves. In response to growing concerns about aging infrastructure and extensive deferred maintenance in certain buildings, […]

Luxury Condo Feels the Sting of Fannie Mae’s New Guidelines (NY)

When buyers at 75 Wall St., a luxury condo in Manhattan’s Financial District, were denied residential mortgages earlier this year, it became clear the building was a casualty of stricter enforcement of Fannie Mae’s new lending guidelines.   Read the article……………………………..

Update on New Fannie Mae/Freddie Mac Condominium Seller Guidelines

Following the collapse of the Champlain Towers South Condominium in Surfside, Florida, in 2021, government backed mortgage lenders, Fannie Mae and Freddie Mac, issued temporary project review requirements relating to significant deferred maintenance in condominiums, co-ops, and similar developments.    Read the article……………………………..

Modernized Lending Standards: New Fannie Mae Requirements in the Wake of the Champlain Towers Tragedy

Following the tragic collapse of the Champlain Towers South in Surfside, Florida, Fannie Mae took a significant step to modernize lending requirements. These new requirements place a greater emphasis on the property condition and the strength of the community’s reserves. In response to growing concerns about aging infrastructure and extensive deferred maintenance in certain buildings, […]

Condo review process changes impact loans

Effective this week, Fannie Mae and Freddie Mac backed loans will begin to require additional information as part of the condominium review process.  At the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac have worked together to update project review requirements to assist lenders in identifying projects that may have issues […]

Fannie Mae and Freddie Mac New Lender Requirements Go Into Effect in September

In July, Fannie Mae and Freddie Mac released updates to project eligibility standards for condominiums and housing cooperatives.  A project refers to a condominium, housing cooperative, or any multi-family common interest ownership association with more than five attached units.   Read the article………………………..

Fannie May and Freddie Mac Release Lender Bulletins for Condo and Co-Op Mortgages – What do Illinois Condominium Associations and Co-Ops Need to Know?

In the wake of the tragic 2021 condominium building collapse in Surfside, Florida, Fannie Mae (“Fannie”) and Freddie Mac (“Freddie”) adopted temporary eligibility guidelines for loans insured by Fannie and Freddie for condominium units or co-op apartments and required the completion of a condominium project questionnaire addendum in Form 1076. Recently, Fannie and Freddie released […]

What your Condo Association Needs to Know About the New Fannie Mae and Freddie Mac Lending Guidelines

The Surfside condominium collapse led to significant reform in the condominium lending industry. In Lender Letter LL-2021-14, Fannie Mae and Freddie Mac implemented temporary lending guidelines in 2021 for condominium purchasers that desired to secure a mortgage as was previously discussed in Prepare your Condo for the new Fannie Mae and Freddie Mac Lending Requirements. […]

What Are The Factors Leading To Condos Being Non-Warrantable

If you are a first-timer looking at condos, you may hear someone mention warrantable vs. non-warrantable.  Understanding non-warrantable condos is crucial when considering purchasing a condominium. These properties do not meet the guidelines set by government agencies like Fannie Mae and Freddie Mac, making it challenging to secure financing.    Read the article………………………..

Fannie Mae and Freddie Mac Release Lender Bulletins for Condo and Coop Mortgages

Within the past few weeks, both Fannie Mae and Freddie Mac released lender bulletins as a step toward making temporary requirements permanent. The temporary requirements addressed issues of structural safety in condominium and housing cooperative buildings in response to the Champlain Towers South condominium collapse.    Read the article………………………..

Fannie Mae: The Future of Condo Lending

Fannie Mae remains focused on long-term homeownership sustainability, continuously refining our property and underwriting requirements to help set homebuyers up for success. While homes in condo and co-op projects are a great choice for many consumers – especially first-time homebuyers, who make up a higher concentration of condo and co-op buyers – we are mindful […]

Fannie Mae, Freddie Mac update condo and co-op unit policies

Fannie Mae on Wednesday released criteria for loans on apartments within condominiums and cooperatives that will replace stop-gap measures for buildings with significant deferred maintenance or public repair directives for unsafe conditions.  Read the article (PDF) ………………………..

Fannie Mae’s Secret ‘Blacklist’ of Properties: As Many as 1,700 Condos, Co-ops & HOAs May Be Affected

According to a recent investigative piece by the Orange County (Florida) Register, Fannie Mae is keeping a secret “blacklist” of condominium, HOA and cooperative properties which the federal agency has decreed that lenders should stay away from. Fannie Mae is a United States Government sponsored enterprise whose purpose is to expand the secondary mortgage market. […]

California’s FAIR Plan may save condo associations blacklisted by Fannie Mae

Dear Fannie Mae: I might have found a unicorn for all the California condos you’ve blacklisted.  Please meet the fine folks at the California FAIR Plan, a home insurance association. And please meet the fine folks at the California Department of Insurance, including Insurance Commissioner Ricardo Lara. They just might have a novel idea to […]

Is Your Condo or HOA on the Fannie Mae Unavailable List? (IL)

The Federal National Mortgage Association (FNMA, otherwise known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, commonly known as Freddie Mac) both created new sets of requirements impacting condominium associations.   Read the article………………………..

Fannie Mae’s Secret ‘Blacklist’ of Properties As Many as 1,700 Condos, Co-ops & HOAs May Be Affected

According to a recent investigative piece by the Orange County (Florida) Register, Fannie Mae is keeping a secret “blacklist” of condominium, HOA and cooperative properties which the federal agency has decreed that lenders should stay away from. Fannie Mae is a United States Government sponsored enterprise whose purpose is to expand the secondary mortgage market. […]

The Florida Condo Collapse Has Changed the Lending Landscape (NY)

When a lender provides financing for an apartment purchase or refinance, it is not only vetting the borrower’s financial viability, it’s also reviewing the co-op’s corporate structure, its financials and the physical condition of the building. The lender also asks for insurance information, occupancy makeup, and how many sponsor-own units and rented units there are.  Watch […]

Fannie Mae Shakes Up the Co-op and Condo Lending Game (NY)

In the past, Fannie Mae bought apartment loans based on a building’s financial health,” says Jerry Niemeier, an authority in co-op lending. Then came the deadly Florida condo collapse. “Now Fannie Mae is asking lenders to essentially certify that there are no significant deferred maintenance issues or unsafe conditions in the building. And if repairs […]

Michigan Condos – Addressing New Lending Questionnaires

It has been just over a year since tragedy struck Surfside, Florida, when ninety-eight individuals perished in when a 12-story beachfront condominium partially collapsed. The national response following this catastrophic loss was multifaceted, from State-driven reforms aimed at condo safety to changes in lending and insurance standards.   Read the article………………………..

CondoTek executive: New condo rules “difficult to swallow”

It’s been more than a year since the Champlain Towers South condo building suddenly collapsed in the Miami suburb of Surfside, Fla., killing 98 people. Following the tragedy, a reform bill was passed to prevent similar disasters from occurring. Fannie Mae and Freddie Mac also toughened their loan standards on older buildings to ensure structures […]

Surfside tragedy makes condo buying challenging nationwide

Under new rules instituted by Fannie Mae and Freddie Mac in the wake of the collapse of Champlain Towers South condominium in Surfside, Fla., last year, condo boards or property managers are required to answer a 12-question form about the structural integrity of the building and the financial health of the association for the transaction […]

HOA FHA Approvals: What You Need to Know

It’s no secret that the housing market is booming again. As prices continue to rise, more and more people turn to the FHA loan program to buy a home.  But what is an FHA approval? Do HOAs really need one?   Read the article………………………….

The Dawn of a New Reality in Condo and Co-op Lending

In January of 2022, new Fannie Mae condo and co-op lending guidelines created broad changes in how condo and co-op loans must be underwritten. Freddie Mac followed suit shortly thereafter in February. In just a few short months, these sweeping changes in how lenders now must evaluate condo and co-op properties prior to closing loans […]

The New Fannie Mae and Freddie Mac Condo Questionnaire

Fannie Mae & Freddie Mac are two of the biggest players in the mortgage market, particularly the secondary mortgage market, where mortgages are bought and sold after they have been originated. This article will look at a brief history of Fannie & Freddie and the new condominium questionnaire requirements. We will also go over some […]

The New Fannie Mae and Freddie Mac Condo Questionnaire

Fannie Mae & Freddie Mac are two of the biggest players in the mortgage market, particularly the secondary mortgage market, where mortgages are bought and sold after they have been originated. This article will look at a brief history of Fannie & Freddie and the new condominium questionnaire requirements.   Read the entire article……………………………….

The New Fannie Mae and Freddie Mac lender Questionnaire: To Answer, or Not to Answer, That is the Question!

Prompted by the Champlain Towers Condominium collapse in Surfside, Florida, the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) recently issued new temporary requirements as an attempt to mitigate risk in community association loan underwriting. Many other industries within the community association world, such as insurance, have adjusted […]

Tips on Filling Out the Fannie Mae/Freddie Mac Questionnaire

Effective early this year Fannie Mae and Freddie Mac, the two largest purchasers of residential real estate mortgages from lenders, started requiring information regarding the structural integrity and plans for addressing deferred maintenance for almost all condominium buildings. This is in direct response to the tragedy of the partial collapse of the Champlain Towers in […]

Significant Changes in Mortgage Underwriting Immediately Impacts Florida Condominiums

As a result of the Champlain Towers South collapse, Fannie Mae and Freddie Mac have imposed new requirements for mortgages obtained for condominiums and cooperative residential units. These requirements will make it harder for existing and new condominium unit owners to obtain mortgages.   Read the entire article……………………………….

Post-Surfside Rules Create Condo Financing Problems

In most places, condominium and cooperative apartments are considered among the most affordable ownership options. But if they haven’t already, buyers in some buildings may soon be finding it difficult to secure financing because of new rules regarding deferred maintenance, structural issues and underfunded reserve accounts.   Read the entire article……………………………….