Wednesday, May 6, 2009
New Fannie Mae Rules Making It Tougher...
Fannie Mae, the government-sponsored group that makes adequate funds available to mortgage lenders, has implemented new guidelines as of March 1st that unit owners and associations should be aware of. These changes have impeded many sales lately. Some of the primary issues concern clarifications of owner-occupancy ratios, association insurance, lawsuits and new guidelines for new construction and newly converted projects. It has been my experience that buildings which has once passed with flying colors, now don't qualify and as a result, lenders are rejecting these loans. This is trouble for both buyers and sellers.
A recent article in the Chicago Tribune outlines some of the most relevant changes.