Fannie And Freddie New Condo Guidelines

[Airstream]

So has anyone seen the new condominium guidelines from Fannie and Freddie? Apparently now the condition of the entire complex, budget, reserve funds, etc are going to come under heavier scrutiny. I use to do many condominiums. The place I live now doesn’t have many. But this could affect a lot of things especially as it relates to apprasiers having to come up with data. Might also affect 3.6 appraisals. I really haven’t looked at the condo part of the 3.6.

 

[J Grant]

Are those guidelines for lenders or for appraisers?

If the Fannie guidelines you are referencing are for lenders, that is their job, not ours - they can chase down whatever info they need from the condo to satisfy their end.
Most condos wll not release that info to an appraiser, or only with a fee to them of $150 or more. The lenders, however, can get it, especially as they can get a unit owner's permission or pay the fee.

 

[James Micozzi]

So has anyone seen the new condominium guidelines from Fannie and Freddie? Apparently now the condition of the entire complex, budget, reserve funds, etc are going to come under heavier scrutiny. I use to do many condominiums. The place I live now doesn’t have many. But this could affect a lot of things especially as it relates to apprasiers having to come up with data. Might also affect 3.6 appraisals. I really haven’t looked at the condo part of the 3.6.

yeah. Good luck getting the budget, reserve funds, etc, from the management company or condominium HOA board. Also, are you as an appraiser qualified to render an opinion of the adequacy of the reserve funds, budget, etc? In my opinion, any appraiser that does this is opening themselves up to increased liability. While I understand why the GSE's want this information, it is not an appraiser's job to make a determination on these items.

 

[jay trotta]

You have no ownership interest in the association (condo) and are not entitled to that information; the Lender has an ownership interest and can elect to obtain the information on their own. The association does not have to provide information to you.
IMO-Unless the Lender or Agent of, provides in writing a request (LOE) for that specific info and the cost thereof to obtain the information, I do not see it as any part of appraisal practice.

 

[Tom D]

That looking at every condo doc has been around awhile. I don't know of 1 condo failure here for me to be diving into their docs looking for their potential collaspe.. Now you people in florida and calif have a wholly different danger with insurance rates killing the future condo market. Docs say anything about that existential threat.