From the desk of Orest Tomaselli, President Project Review, CondoTek
The release of the new loan limits for 2023 by the FHFA yesterday will be welcome news for many of our lender clients. Many more condo and co-op loans will fit into the conventional and high-cost loan buckets. With that increased loan availability comes additional requirements for condo and co-op property scrutiny. Now that more borrowers will be able to get Fannie and Freddie mortgage financing on condo and co-op units more “luxury” condo and co-op properties will be forced to comply with agency lending requirements. For decades many luxury buildings operated “under the radar” when it came to compliance. Few of these buildings collected a 10% reserve contribution in their operating budgets, few amassed reserves for large capital repairs, few obtained reserve studies and almost all of them operated via special assessment for large capital repairs. With the new 2022 Fannie and Freddie Condo and Co-op lending guidelines firmly in place, these buildings will have to align and align quickly as many more owners and purchasers will fall into the conforming loan bucket.
CondoTek provides condo and co-op warranted reviews for lenders, our CondoPak document acquisition service and our full project wide lending approval division which offers Fannie Mae PERS, FHA, VA and Portfolio lending approvals for entire buildings. We also now offer Fannie Mae Unavailable List Project Removal and Determination for properties added to the unavailable list and that seek to be removed or obtain access to residential mortgage financing through our Portfolio lending approval division. To find out about or order any of our services go to www.condotek.com.