Condominum Lending: Compliant, Nearly Compliant, Non-Compliant

One of the most esoteric examples that I have come across in the M Report’s “The Dawn of a New Reality in Condo and Co-op Lending” (just underscoring how pervasive the formula is):

· 70% Compliant“70% of condo and co-op properties that we review are compliant with the new lending guidelines. This 70% share of these properties that are compliant are easily financed, and there are abundant resources for Fannie Mae, Freddie Mac, and portfolio jumbo mortgage financing available for them.”

· 20% Nearly Compliant – “20% of all condo and co-op properties have more limited access to mortgage financing and require additional oversight or compliance to be performed. Access to portfolio mortgage financing is often possible, but access to conforming lending is more challenging.”

· 10% Non-Compliant“10% of the condo and co-op properties we review are non-compliant with the new lending guidelines and have serious issues that will prevent almost all lending on the property unless the issues are rectified. For example, the property may have an operating budget that has no reserve contribution listed, or there is a reserve account, but it has very minimal capital accrued.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: