Question on info released for condo/pud questionnaire

Started by TimB4 • 8 replies • 3663 views

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TimB4 (Tennessee)
Posts: 21,059

Posted:

All,

In the wake of new FHA guidelines, banks and mortgage companies have started sending questionnaires to Associations to qualify the developement for a mortgage (or probably the reight to sell the mortgage to freddimac, etc.). If your Association hasn't started getting them yet you will.

One of the questions I have seen on all of the forms is how many people are 30 days or more behind in assessments. Our Board has decided that we don't release that information to non-members. How many Associations release this info and why have you decided to?

Tim

PeterB1 (Florida)
Posts: 257

Posted:

Tim,

We have not yet received such questions. But, my question is 'what happens if we refuse to respond to the questions?'

peter

JeffP6 (Florida)
Posts: 91

Posted:

I would agree -what happens if we dont answer them? Also we havent received any of these yet so I am assuming these are for prospective folks trying to get a mortgage on one of the for sale/ foreclosures in the neighborhood?

If soo are HOA's charging for the Admin time that it would take to complete such a questionaire? and if so how much?

TimB4 (Tennessee)
Posts: 21,059

Posted:

All,

If you haven't seen a questionnaire yet, I've attached the last one I've received.

As I said, I am sure that the info is used to qualify if the mortgage can be easily sold or not. However, the Board also has a responsibility to the corporation and it's members as to what info is being released.

Tim

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📝192051992771.doc(117 KB)

MaryA1 (Arizona)
Posts: 7,043

Posted:

Peter,

The questionnaire is used to determine if FHA funding will be available for resales and also for refinancing. If the BOD does not complete the questionnaire, members who wish to sell their unit may have problems and als members who want to refinance and take advantage of FHA loans may not be able to. IMO, it is in the best interests of the members to fill out the questionnaire. As for charging a fee I don't know if that is possible. FHA is a govt agency and I don't know that they would be receptive to paying a fee for providing this info.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Mary,

The questionnaire doesn't come from the FHA but from the individual bank or underwriter. In the last one I received, the bank asked if there was a fee and how to pay it, so they are expecting it. I did a quick google search and discovered fees ranging from $25 to $150 to complete the banks forms.

RichardP13 (California)
Posts: 1,767

Posted:

Tim

When I was with Countrywide Home Loans, our underwriters would access the databases of Fannie Mae, Freddie Mac and FHA for Condos and Condo Association. If there was any litigation against the Condo or the Association, the loan was not going to made until the matter was cleared up. Most of the questions that were on the questionnaire were in the database. Many of the questions were generated by the investors that were purchasing the pools of loans in the secondary market. Because the secondary market is pretty much gone, the majority of the loans go through Fannie Mae, which has pretty much crushed that institution.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Tim,

The FHFA was contemplating a ruling that would ban Fannie Mae, Freddie Mac, and any Federal Home Loan banks from purchasing mortgages for any property that has a deed-based transfer fee payable at the time the property is transferred. That was over a year ago and I cannot find out if the rule went into effect or not. I guess if some banks are paying the fees it may not have.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Thank you all for the replys

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