Freddie Mac has made further enhancements to its Condo Project Advisor solution, allowing lenders of all sizes to bring greater efficiency to the financing of condominiums.
With these advancements, mortgage lenders can determine whether a specific loan to finance the purchase of a condo unit meets Freddie Mac’s guidelines in just minutes.
This designation, known as “Project Certified” status for project assessment requests (PAR), confirms that condo properties meet certain project review and general eligibility requirements for financing.
Once reaching this status, lenders only need to do minimal project underwriting, which may save lenders time and borrowers money.
Additionally, lenders can also now submit to have a condominium receive Project Certified status for certain projects at no cost for loans secured by units in condo projects that don’t already carry this status.
“Condominiums provide a key path to homeownership, particularly for first-time and low-income homebuyers,” says Tanya DeLia, single-family vice president of collateral risk management at Freddie Mac, in a release. “Considering the challenges facing the housing market currently, it should come as no surprise that condo financing is especially critical.
“We are committed to continuing to find ways to help streamline condo loan originations, while helping lenders ensure that condo homebuyers are put on a path of sustainable and successful homeownership in condo communities,” DeLia adds.
Freddie Mac-authorized lenders using Condo Project Advisor will automatically have access to request Project Certified Status review beginning December 8.
Tracy Kasper, president of the National Association of Realtors (NAR), says NAR has been pushing for these changes for the past two years.
“On behalf of the 1.5 million members of NAR, we thank Freddie Mac for expanding this tool,” Kasper says in a statement. “Our association has advocated for these changes and previously called for government-sponsored enterprises to take a proactive role in helping to improve the availability and consistency of association documentation, financials, and studies. These changes are important steps to improve the HOA’s ability to meet the more stringent requirements put in place after the Surfside building collapse. NAR appreciates these important changes and Freddie Mac’s willingness to address these challenges proactively. We look forward to further collaboration and continuing to streamline processes for real estate professionals in the future.”
