Editor’s Note: Groups Ask FHFA For Fannie/Freddie Changes To Improve Affordability
The Community Home Lenders of America (CHLA), the Community Associations Institute (CAI), and the National Association of Mortgage Brokers (NAMB) sent a joint letter to FHFA Director Bill Pulte, asking for changes to various Fannie Mae and Freddie Mac condominium approval policies, in order to improve homebuyer affordability, accessibility, and housing supply.
The letter expresses concerns about the recent elimination of limited reviews of condo projects, citing “increasing documentation burdens, third party review expenses, lender questionaire demands, and processing times” of full project reviews.
The letter also expressed concerns about the recent increase in condo project reserves from 10 percent to 15 percent, which “will lead to higher HOA dues, additional special assessments, and increased insurance costs.” Also cited were concerns “about continuting ambiguity surrounding the definition and application of ‘critical repairs.'”
“”[M]ore than one-third of U.S. housing – 35.2% – is located in community associations. . . with 78.1 million residents,” said the letter states. “For many first-time buyers, moderate-income households, seniors and buyers in higher-cost markets, condominiums remain one of the most attainable paths to homeownership.”
The joint CHLA/CAI/NAMB letter expressed appreciation for FHFA’s ongoing commitment to safety and soundness, and closed with a list of suggestions that maintain that objective while preserving affordability and access – seeking delays in implementing the recent proposed changes not for the sake of delay, but in order to take the time to review and make appropriate changes to various Fannie/Freddie policies.
Tony Garritano is the founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 20 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting PROGRESS in Lending Association was the next step for someone like Tony, who has dedicated his entire career to providing mortgage executives with the information that they need to make informed technology decisions to help their businesses succeed.
