Fannie Mae issued Lender Letter LL-2021-14 to specify temporary eligibility requirements for condominium and co-op projects with 5 or more attached units (collectively “Projects)”, regardless of the type of project review or review waiver. The temporary requirements pertain to:
- Projects with significant deferred maintenance and unsafe conditions (projects are now ineligible for sale until repairs documented);
- Special assessments (lenders must now review and document to determine acceptability);
- The availability status in Condo Project Manager (CPM) for ineligible projects;
- Reserve requirements; and
- Project Eligibility Waivers (PEWs).
Revisions related to PEWs and the project status change in CPM are effective immediately. All other revisions are effective for whole loans purchased on or after January 1, 2022 and for loans delivered into MBS pools with issue dates on or after January 1, 2022.
Click to view the Fannie Mae Lender Letter LL-2021-14: https://www.tenaco.com/wp-content/uploads/2021/10/Fannie-Mae-Lender-Letter-LL-2021-14-10-13-21.pdf
Click to view the Fannie Mae Appraising and Underwriting Condo and Co-Op Projects PDF: https://www.tenaco.com/wp-content/uploads/2021/10/Fannie-Mae-Appraising-and-Underwriting-Condo-and-Co-Op-Projects.pdf
