On December 15th, 2021 Freddie Mac issued new condo and co-op lending guidelines in response to the tragic collapse of the Champlain Tower condominium in Surfside Florida. These new guidelines for lending are incredibly impactful and depart from Fannie Mae’s recent lending guideline changes in many ways.
The new guides primarily focus on building financials, deferred maintenance, and structural component condition. The most impactful parts of the guidelines revolve around Freddie Mac’s acceptance of reserve studies in order to establish an appropriate reserve contribution for both new construction and established condo and co-op properties.
These new guidelines create a clear path for lenders to review and warrant condo and co-op properties and provide property managers, board members and developers a choice as to which guidelines they should adhere to.
CondoTek will be offering a series of webinars specifically dedicated to these recent guideline changes.
Check back soon for announcements here on our blog and LinkedIn!