Fannie Mae Streamlines Condo Approval
On Nov. 10, 2014, Fannie Mae published an update to its lender selling guide to improve and streamline its condo project approval process. NAR had called for improvements to the condo approval process in order to increase property eligibility and project review timelines. The comprehensive changes have already been made to allow for immediate implementation, but will be updated in Fannie Mae's Condo Project Manager in March. Some of the changes that will be immediately impactful:
- Consolidation of Condo Project Manager and Full Review Processes which will streamline the approval process.
- Pre-sale requirement for new projects has been decreased from 70% to 50%.
- Increase in the number of days for which 15% of unit owners may be past due on common expense assessments has been increased from 30 days to 60 days.
- Increase in the allowable commercial space allocation from 20% to 25%
- Waiver on the 10% investor ownership limit on projects between 5 and 20 units by allowing a single entity to own up to 2 units.
Fannie Mae has updated its online Condo page with the new review requirement and FAQs. Full details are available in Fannie Mae Seller/Servicer guide.