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Fannie Mae and Freddie Mac to Eliminate Abbreviated Condo Reviews Starting August 3

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condominium applications dated on or after August 3. This change requires many condo projects to undergo a Full Review, which involves a comprehensive assessment of the association's finances, reserve funding, and building maintenance. The new policies aim to better identify buildings with structural or financial problems, reducing the risk of unexpected special assessments for homeowners. However, industry experts express concern that the increased scrutiny may lead to delays in mortgage approvals and higher costs for buyers. Max Slyusarchuk, CEO of AD Mortgage, noted that the process will take longer and could result in many disqualifying applications. Additionally, Taylor Stork, president of the Community Home Lenders of America, questioned whether the elimination of abbreviated reviews will unintentionally increase expenses while restricting access to credit. The transition is particularly significant for Florida, where condo associations are already navigating insurance costs and structural requirements. To mitigate these impacts, the agencies have introduced some flexibility, such as removing the 50% investor concentration limit and easing certain property insurance requirements.

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