Comment Detail

Comment

I'm the national condo underwriting manager and I've witnessed first hand how difficult this guideline has proved to be for many markets across the country. This guideline has effectively redlined/black-balled entire markets that were previously eligible under Fannie/Freddie guidelines prior to the December 2020 guideline changes. Also, since the guidelines are very grey (13 ineligible bullet points but some have grey explanations and 8 red flags) and since condo guidelines are not audited at time of settlement, many lenders are on an uneven playing field because their "interpretation" of these guidelines are making them comfortable lending in projects that we or other lenders have deemed ineligible. We've got over 10 repurchases on these guidelines and it really is unfortunately an interpretation; every ineligible bullet point can be argued for or against each project. The guidelines prior to 2020 were only 4 bullet points for Fannie and 5 bullet points for Freddie and were much more black-and-white. I'm happy to provide any additional data that my company will allow upon request. Please don't hesitate to reach out.