Fannie Mae Condo Lending: Does your development need to comply? Orest Tomaselli, CEO Na1onal Condo Advisors, LLC 11/9/11
Na;onal Condo Advisors, LLC: The na1on’s premier condominium project approval service Na1onalcondoadvisors.com Blog.na1onalcondoadvisors.com Ph. 888-‐726-‐6361
Presenta;on Overview • Fannie Mae Approval Process • Fannie Mae Basic Guidelines • Legal Requirements • Reserve Requirements • Insurance Requirements • Pre-‐Sale • Non-‐Warrantable Financing • Na1onal Condo Advisors’ Process
Fannie Mae Approval Process • CPM-‐Condo Project Manager • CVAS-‐Credit Variance Administra1on System • PERS-‐Project Eligibility Review Service
Fannie Mae Basic Guidelines: CPM-‐Condo Project Manager • Lender speciﬁc • Condo project approval • Compliant condo only • Established developments
Fannie Mae Basic Guidelines: CVAS-‐Credit Variance Administra;on System • Lender Speciﬁc • Lender SubmiWed • Single Loan Waivers
Fannie Mae Basic Guidelines: PERS-‐Project Eligibility Review Service • Global approval • Not lender speciﬁc • Mandatory in some cases • Direct from Fannie Mae approval • Cost • Condi1onal approval • Final approval
Legal Requirements • Warranty of condo project legal requirements • Compliance with laws • Limita1ons on ability to sell/right of ﬁrst refusal • Amendments to documents • Rights of condo mortgagees and guarantors • First mortgagee’s rights conﬁrmed • Unpaid dues • Fannie Mae Form 1054
Reserve Requirements • 10% line item within the budget • Reserve Study • Funding plan • Mandatory Reserve Studies for *newly converted non-‐gut rehab condo * ‘Newly converted’ is deﬁned as less than 90% of units conveyed and/or transfer of control to HOA has not occurred • Mandatory Reserve Studies must include prefunding for components needing replacement within 5 years, and include u1li1es reserves unless separately metered.
Non Warrantable Financing • Fannie Mae condi1onal approval • Reserve compliance • Compliance with Fannie Mae Form 1054
Na;onal Condo Advisors’ Process • PERS consul1ng • Compliance solu1ons • Non-‐warrantable solu1ons • New construc1on • Conversion • Exis1ng • Reserve Compliance • Flood Zone Remedia1on
Thank you Need some guidance on a condominium development? Call us or log on to the Na1onal Condo Advisors website and click on our eligibility review link. We’ll do the rest. Interested in a condo Reserve Study? Check out Strategic Inspec1ons, LLC. Join us for our Non-‐Warrantable Financing Webinar on November 21, at 10am EST.