Stricter Condo Lending Rules Take Effect Aug. 3, May Cause Mortgage Delays

Prospective homebuyers eyeing a condominium may soon discover that mortgage lenders are as interested in the condo building as they are in the buyer. New condo-lending policies taking effect on Aug. 3 from Fannie Mae and Freddie Mac — government-sponsored enterprises that purchase qualifying mortgages on the secondary market — mean that some purchases could involve greater scrutiny by lenders. [...] Condo associations "are not experts in Fannie or Freddie lender requirements. They just suddenly get a lender questionnaire, and they complete the information," Bauman said. "There will be buildings that don't know about that change, so they can't comply with it. We're really encouraging a delay to that requirement for another year to give these boards and managers the opportunity to understand the changes in place."