FREDDIE MAC Joins FANNIE MAE IN RELEASING TEMPORARY CONDOMINIUM AND COOPERATIVE PROJECT REQUIREMENTS
Today, Freddie Mac released temporary condominium and cooperative property project requirements related to property eligibility and appraisal requirements for projects in need of critical repairs and projects with special assessments. The guidance goes into effect for lenders and appraisers February 28, 2022.
Freddie Mac is expecting the “Seller must determine compliance with the requirements regarding” projects in need of critical repairs and special assessments. The temporary requirements apply to all mortgages secured by unit sin projects with five or more attached units regardless of the project review type. Projects in need of critical repairs will be ineligible.
Freddie Mac is not changing their stance on reserves. They will still allow less than 10% with a reserve study and they are requiring documentation that at least 95% of any special assessments budgeted are actually being collected. There will be an addendum to the current questionnaire that gathers the info lenders need. A document with examples of questions will be released by Freddie Mac and will follow.