FANNIE MAE UNAVAILABLE LENDING LIST

Fannie Mae and Freddie Mac rolled out additional guidelines for condominium lending and the requirements continue to pose challenges for associations filling out condominium questionnaires:  See MEEB’s article “New Rules Create Potential Financing Obstacles for Some Condominiums” for some of these potential challenges.

As part of the review process, Fannie Mae is compiling a list of communities across the country that will not be eligible for loan approvals. Several associations that MEEB represents have been placed on the list because of serious structural problems and significant deferred maintenance. Some clients who are not on the list have asked whether they are on the so-called, “Black List.” The list is made available to lenders but is not published or provided by Fannie Mae. So far, being on the list has not been a surprise for the associations MEEB represents because being on the list results in some mortgage loan applications being denied. When that occurs the board and/or property manager is generally well aware there is a problem. Although not being able to qualify for Fannie Mae backed mortgages would be concerning for any association – in our opinion – checking to see if your association is on the list (which is updated constantly) is not an undertaking that needs to occur unless there are mortgage applications being denied within the association.