New Freddie Mac Requirements For Condominiums

Fannie Mae and Freddie Mac released new guidelines in late 2021 that bring additional requirements for condominiums. These requirements include significant deferred maintenance and unsafe conditions, special assessments, reserve requirements, and a joint uniform lender questionnaire. Lenders need to comply with the new requirements to maintain underwriting or funding the volume of mortgages. The requirements include significant deferred maintenance and unsafe conditions, a full or partial evacuation of the building to complete repairs, and deficiencies, defects, substantial damage, or deferred maintenance that is severe enough to affect safety, soundness, structural integrity, or habitability of the improvements. The improvements need substantial repairs and rehabilitation, including to many major components that would impede the safe and sound functioning of one or more of the building’s major structural or mechanical elements.

The building has not passed or completed required inspections. Condominium associations should be prepared to respond to document and information requests from lenders related to the physical condition of the project and any current or planned special assessments. Property Managers need to be able to track, prioritize, schedule and resolve preventative maintenance tasks, as well as track repair issues submitted by staff or residents. Associations need to be able to effectively handle requests and all the communications that go along with them. Icons_ServiceRequests allows staff to respond, monitor, and communicate the status of any job with just a few clicks.

Icons_FileSharing allows staff to securely store and share all of their community documents online. Icons_IntegratedPublicWebsite allows staff to represent their community professionally and publish content such as amenities, calendars, files, and other information. These features are essential for associations to stay engaged and up to date on maintenance, repair, and building safety issues.