Look Out for Changes on the Lender Questionnaire

Written by Attorney Charles A. Perkins

COVID-19 and its variants have been at the forefront of concerns for condominium associations for the past twenty-two months. However, anyone involved in the industry should be aware of other concerns in the form of changes recently announced in a statement issued by Fannie Mae.

Fannie Mae has notified lenders of new/updated requirements it has implemented that will impact the financing eligibility of condominium and certain co-op projects. These new requirements may come as no surprise to some considering the tragic collapse of the Champlain South Tower in Surfside Florida earlier this year. The problem, however, is the method that will be utilized to assist banks and other institutions with making their lending determinations.

The changes announced by Fannie Mae include a list of specific disclosures required as part of the process to determine loan eligibility. This information will be vetted through questionnaires requesting information relative to special assessments, deferred maintenance, and information on code violations. Answering these questions may or may not be something that board members and managers can, or should, do, and we recommend that all associations proceed with caution when completing these questionnaires. 

If you would like additional information, utilize this link for more information about the latest announcement from Fannie Mae. Fannie Mae Lender Letter (LL-2021-14)

If you have any questions regarding this matter, please do not hesitate to contact our office for assistance.