Condo Appraisal Protocol Changed
Appraisers, Fannie Mae has changed inspection and reporting requirements for Condominiums, effective January 1, 2022. The article titled “How can appraisers evaluate aging condos without docs?” from Loop North News has info:
From the article:
24-Jan-22 – Fannie Mae’s sweeping new national condominium and co-op apartment lending regulations were created to protect residents, but the tough rules do not cover all the problems, appraisal experts say.
High-rises with “aging infrastructure and significant deferred maintenance is a growing concern across the nation,” noted the Fannie Mae memorandum, issued as a result of the tragic collapse of the Champlain South Tower in Surfside, Florida, which killed 98 people. The new regulations went into effect on January 1, 2022…
Fannie Mae’s rules now require that lenders and appraisers review a laundry list of items before mortgage approval, including the following documents:
- The declaration (or covenants), conditions, and restrictions (CC&R), bylaws, house rules and regulations.
- Board meeting minutes, state mandated disclosures, prior and current year budgets, and the reserve study.”
Reviewing condo docs critical but expensive
“Doc fees can range from $50 to $250 per document, so the price can really add up depending on the number of documents requested,” Benson said. “On average, fees may run in excess of $500 for electronic delivery for a complete set needed to complete a condominium sales transaction.”
For more details, refer to the FNMA Selling Guide, B4-1.4-03.