FNMA Update - NO CONDO FINANCING

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Services for Real Estate Pros with Realty Elite The Palm Beaches

FNMA Announcement 09-37  Dec 30, 2009.

Amends these Guides: SellingIntroductionThis Announcement contains the following updated policies:

FHA-Approved Condo Projects, Credit Score Versions, DU Refi Plus and Refi Plus Updates, and Other Updates to the Selling Guide

  • Discontinuance of accepting FHA-approved condo projects for conventional mortgage loans
  • Acceptable credit score versions for manual underwriting
  • Acceptable subordinate financing for DU Refi PlusTM and Refi PlusTM
  • Changes to existing mortgage loan eligibility for Refi Plus mortgage loans

Each of these changes is briefly described below. With this Announcement, Fannie Mae is beginning a regular process of simultaneously updating the affected topics in the Selling Guide and publishing an updated version of the Guide. The affected topics are noted for each policy change and are linked to the updated Selling Guide. Lenders should review each topic to gain a full understanding of the policy changes. (Note: For lengthy topics the specific paragraph(s) that was updated is also noted.) The updated topics are dated December 30, 2009.

In addition, the Selling Guide has been updated to incorporate the following items. Refer to the Attachment to this Announcement for the details:

  • Announcement 09-28, Retirement of HomeStyle® Construction-to-Permanent Announcement 09-29, Updates to Minimum Credit Scores, Mortgage Insurance, Pricing forSeveral other miscellaneous clarifications or error corrections
  • Certain Desktop Underwriter® Loans, Biweekly Loans, and Special Feature Codes
  • Desktop Originator®/Desktop Underwriter® Release Notes - Version 8.0

As of the December 30, 2009 publishing of the Selling Guide, all announcements have been incorporated and the Guide is up-to-date. (Prior versions of the Selling Guide are available on efanniemae.com.

OK, Basically, all condo financing in Florida is gone.  The only project eligible for financing are on the list provided below, only if the project meets other guidelines related to investor ownership and percentagle of delinquencies.  If you add it all up, 95% of all condos in Florida are not eligible for any financing even with 20%-25% down.  Conventional investors follow FNMA guidelines.  This is going to make a bad situation worse and condos struggling with foreclosures, and delinquent homeowners are going to fail. 

I wish I had an answer on how to mitigate the problem, but this one is a meteor headed for earth with no stopping it.

http://www.newflproperties.com/xSites/Agents/newflproperties/Content/UploadedFiles/FL.pdf

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