Effective March 1, Fannie Mae (FNMA) the folk the make conventional loans “conventional” are planning to further tighten the condo guidelines on which mortgages they will buy on the secondary market. It could be argued that it makes no difference since they are already impossible in most cases, leaving only FHA backed loansÂ as an option.
Additionally, in theÂ case of bank owned condosÂ cash is usually the only option anyway -Â so again, perhaps it makes no difference.
In today’s Orlando Business JournalÂ (OBJ), a Fannie Mae spokeswoman is quoted: “The pre-sale requirement is intended to ensure a project is well-managed and able to sustain itself financially at times when there are a large number of condo fee delinquencies.”
Anjali Fluker at the OBJ repports that under the new rules, pre-sale requirements will go from 50 to 70 percent. And no more than 15 percent of the community’s units can be more than 30 days late.
Fifteen percent!? Name one condo association in Orlando that has aÂ delinquency rate of less thanÂ 15 percent… (“Johnny, put your hand down. We’re talking HOA delinquency, not juvenile delinquency.”)Click newspaper image for full article.