Fannie Mae announced that it will undertake a comprehensive review of hundreds of condominium projects in Florida in an effort to streamline the approval process of properties that fall short of their standard eligibility guidelines.
A Florida-based team of Fannie Mae examiners will conduct a thorough examination of various condo projects across the state to evaluate specific criteria such as occupancy concentration, association dues, financial stability of the project, property condition and maintenance. Projects deemed “sufficiently stable” will be granted a “Special Approval” designation, allowing lenders to originate and deliver mortgage loans to be guaranteed by Fannie Mae.
“This new initiative is geared toward providing maximum support for Florida’s distressed condo market as we continue to provide liquidity to the housing market more broadly,” said Karen Pallotta, executive vice president of Fannie Mae’s single family mortgage business. “The state’s condo market has been particularly hard hit by the housing downturn and we’re working with the industry and our partners to do all we can to stabilize the market and help spur recovery.”
Eligible condo projects will be listed on http://www.eFannieMae.com as the project reviews are completed. Qualified buyers wanting to purchase these units will be eligible for financing.
Special Approval designations will be effective for periods between nine and eighteen months. Lenders will be required to confirm the project’s Special Approval designation on the date of the residential mortgage loan applications.