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.  

Insurance  Requirements  

•  Hazard  

•  Liability  

•  Fidelity  

•  HO-­‐6  (loan  level  only)  

•  Flood  

Pre-­‐Sale  

•  51%  or  70%  

•  Marke1ng  phases    

•  Pre-­‐sale  solu1ons  

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.