On December 7, 2023, Fannie Mae” announced that it will make its secret “Condo Unavailable Projects and Phases Report” public.  Previously, the information was available only to lenders, who were not allowed to disclose it to the general public.  The list will only be available to homeowners’ associations.

A Fannie Mae spokesperson wrote in an email:

“Fannie Mae will implement a web-based tool later in 2024 for condo homeowners’ associations that provides HOAs the ability to determine if loans secured by the project are ineligible for sale to Fannie Mae and to understand the reason why they may not meet one or more of our published requirements. (Fannie Mae’s website says it will make the information available in the third quarter.) More information on how HOAs can access and use the tool will be posted on our HOA-facing webpage closer to the time the tool is available for use.”

Together, Fannie Mae and Freddie Mac support 70 percent of the mortgage market, according to the National Association of Realtors. If people want to buy properties that Fannie Mae consider “non-warrantable”, they have to search elsewhere for a loan, as mainstream lenders will not originate them.

As of October, there were 2,306 on the ineligible list. Florida had the most projects on the list (34.5 percent), followed by California (10.3 percent) and South Carolina (4.6 percent).  Condominium developments present different risks to mortgage lenders than single-family homes. If a development includes a commercial component, not enough of the units are owner-occupied, the development is involved in litigation, or they are under-insured, Fannie Mae may add it to the list.