New rules rolled out earlier this year by mortgage giants Fannie Mae and Freddie Mac are creating a bottleneck in the real estate market for those seeking to buy or sell condo or co-op apartments, according to agents and condo associations. 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……………………………….
New condo guidelines cause strain for mortgage lenders
In the wake of the condominium tower collapse in Surfside, Fla., that left 98 dead and 136 homes lost, Fannie Mae and Freddie Mac issued letters with temporary requirements of condo and co-op projects related to the maintenance of these buildings. Read the entire article……………………………….
Some Condo Boards Refuse New Mortgage Questions
Can the condo world live without mortgage giants Fannie Mae and Freddie Mac and their more affordable financing terms? A fast-developing crisis is hitting condominium association boards and property management companies across the country tasked with filling out Draconian questions required of HOA property management companies. Read the entire article……………………………….
Fannie Mae and Freddie Mac: What new lending guidelines mean for your condominium or co-op
Fannie Mae and Freddie Mac released new guidelines in late 2021 that bring additional requirements for condominiums and housing cooperatives. Buildings with five or more attached units must meet updated structural safety standards to secure loans for mortgages backed by the government-sponsored enterprises Read the entire article……………………………….
CAI Urges Suspension of Fannie Mae and Freddie Mac Temporary Lending Guidelines for Condominiums and Cooperatives
Guidance from Fannie Mae and Freddie Mac introduced in late 2021 brings new project requirements for condominiums and housing cooperatives to ensure safety and structural stability following the partial collapse of Champlain Towers South condominium in Surfside, Fla., last June. However, the short timeframe of implementation and updated lender questionnaires have caught community association boards, […]
Fannie Mae now requires robust reserves (IL)
Q: Can you describe some of the key points of the new Fannie Mae condominium lender guidelines? Read the Q&A………………………………
What You Need to Know About Fannie Mae’s Additional Requirements Impacting Loan Eligibility for Condominiums and Responding to New Lender Questionnaires
In response to the tragic collapse of the Champlain South Tower in Surfside, Florida, many lenders began considering new ways to assess and manage risk in buildings with potentially unsafe conditions. In October, Fannie Mae issued Lender Letter LL-2021-14 outlining additional requirements that went into effect on January 1, 2022 impacting the eligibility of condo […]
Chicago’s aging condos now under Fannie Mae’s microscope
The 2021 high-rise condominium disaster in Florida soon will have an impact in the Windy City. Effective January 1, aging condo buildings in Chicago are under the regulatory microscope of Fannie Mae as a result of the tragic collapse of the Champlain South Tower in Surfside, Florida, which killed 98 people. Read the entire […]
Prepare your Condo for the new Fannie Mae and Freddie Mac Lending Requirements
The Surfside condominium collapse was devastating for the condominium community and served as a wakeup call for many condominium associations. Since the Surfside condominium collapse, co-owners in Florida and Wisconsin have been forced to evacuate condominiums as a result of unsafe structural conditions. As previously indicated in “The Surfside Condo Collapse: A Condo Association Tragedy”, […]
After Surfside, a major national condo reform is quietly going into effect
A major national condo reform is taking place in the wake of last summer’s Surfside condo collapse that left 98 dead. But this reform is not from the government per se. It’s coming from Freddie Mac and Fannie Mae, the federal government-sanctioned companies that buy mortgages from banks. Read the entire article……………………………….
New Fannie Mae Condo Safety Loan Requirements Are Early Indicator of Changes to Come
The first major national condominium safety reform after the horrific tragedy of the collapse of the Champlain Towers South in Surfside, Fla., was announced in October when federal mortgage lender Fannie Mae said it will no longer back loans on units in residential buildings showing signs of structural deficiencies and deferred maintenance. Read the entire article……………………………….
FNMA Lender Letter Articles
On October 13, 2021, the Federal National Mortgage Association (Fannie Mae) issued Lender Letter LL-2021-14 (“Lender Letter”), to take effect January 1, 2022. This Lender Letter temporarily revises the eligibility requirements for lenders issuing loans that may be purchased by Fannie Mae for properties located in condominiums containing five or more attached units. Read […]
New Fannie Mae Changes and Their Impact on Utah Community Associations
The tragic collapse of the Champlain Towers in Florida has forced lenders and other industry stakeholders to look for clear and standardized guidance on how to analyze ongoing risk in residential buildings with aging infrastructure and significant deferred maintenance. This concern is expected to grow in the future as most of the nation’s stock of […]
Fannie Mae’s Temporary Requirements In Response To The Champlain Tower Collapse Will Have A Negative Impact On Condo Sales (FL)
In the wake of the tragic collapse of the Champlain South Tower in Surfside, Florida, Fannie Mae has announced that it will no longer back mortgages of people trying to buy condominium and/or co-op units in certain buildings with aging infrastructure and significant deferred maintenance. On October 13, 2021, Fannie Mae issued Temporary Requirements for […]
Fannie Mae Issues Notice of New Loan Purchase Requirements (OH)
The catastrophic collapse of the Champlain Towers South Condominium in Surfside, Florida earlier this year has caused industry-wide norms to be revisited, particularly as it relates to potentially unsafe conditions effecting condominium projects. Read the entire article……………………………….
New Rules to Protect Consumers From Unsafe Condos
In light of the Champlain Towers South condo collapse in Riverside, Florida, in June 2021, Fannie Mae is taking measures to show the public that condos and co-ops are still viable options for people in the market looking for something convenient and affordable. Read the entire article……………………………….
Fannie, Freddie tighten rules for condos in vacation locales
Getting a mortgage for a resort-area condo might become more difficult after Fannie Mae and Freddie Mac moved to tighten rules on buildings with many short-term rentals and hotel-like amenities, some Realtors and bankers say. Read the article……………………………….
Watch Your Step Crossing the Fannie and Freddie Lending Minefield
In an earlier article, we explained that when deciding whether to lend money to potential buyers or to unit-owners who want to refinance their mortgage in a condominium, lenders follow guidelines issued by federally backed Fannie Mae and Freddie Mac. These guidelines can seem like a minefield. While some of the guidelines present unavoidable pitfalls […]
Fannie and Freddie Litigation Guidelines a Minefield for Condo Boards
When deciding whether to lend money to potential buyers or to unit-owners who want to refinance their mortgage in a condominium, lenders follow guidelines issued by federally backed Fannie Mae and Freddie Mac, which buy mortgages from lenders. Those guidelines were updated last year, and they contain a minefield of pitfalls for condo boards. One […]
FHFA, Fannie and Freddie File Defensive Class Action in Nevada
In an effort to “avoid the cost and burden of piecemeal litigation” of hundreds of cases in the Nevada HOA foreclosure crisis, the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac (collectively, “Plaintiffs”) recently filed a putative class action and motion to certify a defensive class, pursuant to Rule 28 (b)(2) and (b)(1)(B), […]
Appellate Court (FL) Rules in Favor of Association: Fannie Mae Must Pay
The Third District Court of Appeal in the State of Florida ruled in favor of The Alden Hotel Condominium Association against Federal National Mortgage Association on, April 2, 2014, following an appeal of a non-jury trial. According to court documents, Fannie Mae had taken title to one of the condominium units through bank foreclosure and […]
Foreclosing Lenders Avoid Disaster and Given More Options To Foreclose In Eaton v. Fannie Mae Case
The Massachusetts real estate community has been waiting 8 long months for a decision from the Massachusetts Supreme Judicial Court (SJC) in the much anticipated Eaton v. Federal National Mortgage Association (link) case. The decision came down June 22, and now that the dust has settled, I don’t think there is any question that lenders […]