For Condo Boards - Good Article on New Fannie Mae regs that will impact you

Started by JosephW • 10 replies • 2245 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

JosephW (Michigan)
Posts: 882

Posted:

Fannie Mae put out some new regulations regarding loans it underwrites to condo units. Here's an article explaining them and why you need to pay attention:

http://www.meeb.com/current_alert.htm

I suggest printing it off and passing it around to your board members. Why is this important? If I'm an owner in your association and I can't sell my unit because the association doesn't meet these guidelines (which are really very minimum), I'm going to be looking to sue somebody.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

GlenL (Ohio)
Posts: 5,491

Posted:

Thanks Joseph, I've just e-mailed the link to our Board & MC.

Studies show that 5 out of 4 people have problems with fractions

JackieB (California)
Posts: 198

Posted:

Are these regs only for condos?? Recently Davis-Stirling newsletter (bible in CA) referred to "financially unstable associations", etc, etc. "units". Seems odd that only condos are affected??
Jackie

SheliaH (Indiana)
Posts: 6,964

Posted:

A thousand thanks to you for passing on this information!

One of the arguments our board made for the homeowners ratifying our CCRs (which have a rental cap) is that too many rentals might make it more difficult for current homeowners to (1) refinance their homes or (2) sell it to a owner-occupant who would ordinarily quality for FHA/Fannie Mae first time homebuyer programs (and in Indiana, where foreclosures are such a problem, ANYTHING that helps increase the number of potential homeowners/occupants might help)

Instead, all anyone seems to care about is "I hava right to rent out my home". Thus indicating that they didn't READ the propssals which grandfathers current owners or the parts about holding landlords more accountable.

Anyway, I'm bringing this to our board meeting tomorrow night and we will probably mention this in the next newsletter

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JosephW (Michigan)
Posts: 882

Posted:

Jackie,

I wrote the author (ghost author) and she said the regs apply to associations with attached units.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

JackieB (California)
Posts: 198

Posted:

thanks for the F/U? I sent an email to (CA)Davis-Stirling.com Newsletter and
response said any PUD and most HOA's are PUD's will be under the New Fannie Mae
regs. Not just attached units. Confusing, huh?
Jackie

JosephW (Michigan)
Posts: 882

Posted:

Here's the link to the actual Fannie Mae Guidelines:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0718.pdf

and here is FM's definition of a PUD:

"A planned unit development (PUD) is a project or subdivision that consists of common property and improvements that are owned and maintained by an owners' association for the benefit and use of the individual units within the project. For a project to qualify as a PUD, the owners' association must require automatic, nonseverable membership for each individual unit owner, and provide for mandatory assessments. Zoning should not be the basis for classifying a project as a PUD."

So you are correct.

I'll let the writer know to correct the misconception.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

JosephW (Michigan)
Posts: 882

Posted:

I screwed up again - the reg's changes are different for PUD's and condo's (attached units) - I think the article is correct.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

MC2 (Virginia)
Posts: 26

Posted:

JosephW,

Thank you for the information. My Master HOA have a 75 year communication agreement. The annual payment of the HOA to the contract with C!X is $679,104.00 for the year 2007 just for the communication agreement we will need around 69K for reserves. Right now we have 33K in reserve for the whole HOA budget. Ouch!!

JackieB (California)
Posts: 198

Posted:

Who's on first?? I don't get it.?????
Jackie

JosephW (Michigan)
Posts: 882

Posted:

The heavy duty everything requirements are for condos or attached units.

For PUD's (HOA's)

"Fannie Mae does not require a lender to perform a review of a PUD project if the mortgage being delivered is secured by a detached unit within a PUD, as stated in the Selling Guide Part XII, Chapter 3, PUD Project Review."

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here