Fannie Mae’s secret condo ineligible list tops 2300+ projects
Fannie Mae, officially the Federal National Mortgage Association, possesses a discreet and expanding nationwide roster of condominium properties, known as a blacklist, where it refuses to acquire mortgages. The affected developments are not notified of their inclusion in this list, which lenders access through a Fannie Mae tool. In order to maintain confidentiality, Fannie Mae…
Read More200+ condominium California projects now on Fannie Mae Ineligible List
Just a quick email to update you on the nature of non-warrantable condominium financing. As you can see by the title of this email, the situation is getting worse, with new condo projects hitting the “ineligible” list every week. Projects that are under-insured lead the way, while HOA litigation, deferred maintenance and special assessments continue…
Read MoreCA Dept of Insurance Increases Fair Plan Limits for Condo Projects
Just a quick update on the insurance crisis that is affecting California condo projects. The CA Dept of Insurance recently increased “Fair Plan” commercial coverage limits for condo projects, farms and businesses to 20 MIL. Full article here: https://www.insurance.ca.gov/0400-news/0100-press-releases/2023/release051-2023.cfm Will it help? The short answer is “a little”, for smaller projects where insurance companies wont…
Read MoreCalifornia Condo Projects Continue to Face Challenges Obtaining/Renewing Insurance
Insurers in California have started declining to provide insurance or renew coverage for community associations in the state, citing significant losses resulting from natural disasters. However, this issue isn’t unique to California, as condo and HOA (homeowners’ association) insurers across the nation are becoming cautious and increasing their rates. Here’s what you should be aware…
Read MoreWhy Are There So Many Non-Warrantable Condos These Days?
The amount of condominium projects added to Fannie Mae’s ineligible list has surged in the last year by over 30%. My personal experience is that there are two large contributing factors. One, larger garden style condo projects spread out over many acres are under-insured for fire insurance. The combination of the insurance company’s replacement cost…
Read MoreSmart Real Estate Moves: 4 Reasons To Buy In 2023 and 2 Reasons Not To
Homebuyer uncertainty is currently high right now and for good reason: Prices are at all-time highs, and rates are at 10-year highs. Along with a bumpy economic outlook, it’s understandable why some buyers are hesitant about purchasing a home. But many financing experts, including Dave Ramsey, feel it’s still a good time to buy, if…
Read MoreCondo Litigation Loans
Condominium units in a project where the Homeowners Association is involved in pre-litigation, mediation/arbitration, or formal litigation are considered “non-warrantable” by Fannie Mae (FNMA), a United States Government-Sponsored Entities (GSE’s) whose main goal is to provide liquidity to the nation’s mortgage finance system. Non-warrantable condominium loans are not eligible to be sold to Fannie Mae,…
Read MoreWhat Is A Non-Warrantable Condo
Fannie Mae (FNMA), a United States Government-Sponsored Enterprise (GSE) whose main goal is to provide liquidity to the nation’s mortgage finance system, owns the majority of mortgages in the United States. They have very specific guidelines for single family residences, including condominiums. Condominium projects that do not meet these specific guidelines are classified as “non-warrantable”.…
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