Fannie Mae and Precedent Management Working Together

Precedent Management is working on behalf of Fannie Mae to obtain and receive any information and all documentation pertaining to the condo association. The objective is to determine the master eligibility of the project for mortgage financing purposes.

MOST REQUESTED

CONDOMINIUM DOCUMENTS

  • Lender Questionnaire

  • Annual Budget

  • Most Recent Financial Statement

  • Most Recent Audited Financial Statement

  • Last two Meeting Minutes

  • Most Recent Reserve Study

  • Certificate of Insurances

  • Copy of CC&Rs and Bylaws

  • Special Assessment Documentation (if applicable)

  • Most recent Inspection or Engineering Report (if applicable)

  • Any Litigation or Code Violation Documentation (if applicable)

  • Any Leasehold documentation (if applicable)

FAQs

  • Fannie Mae is a government-sponsored enterprise (GSE), a quasi-governmental entity established to enhance the flow of credit to specific sectors of the American Economy. Created by Congress, Fannie Mae is a privately held company under the oversight of the Federal Housing Finance Agency (FHFA) to help provide public financial services. Fannie Mae does not lend money to the public directly; instead they guarantee third-party loans and purchase loans in the secondary market, providing money to lender and financial institutions.

  • The quality of mortgages secured by units in condo, co-op, and planned unit development (PUD) projects can be influenced by certain characteristics of the project or by the project as a whole. Project eligibility and financial strength are key drivers of credit performance on individual unit mortgages and critical to the long-term success of the project. Fannie Mae’s project eligibility and underwriting requirements seek to mitigate project level risks and to ensure that projects are demonstrably well-managed.

  • The information being requested is on a project level to determine the eligibility of the project as a whole so that individual mortgage loans on units can be approved through lenders easier.

  • Fannie Mae will be reviewing the documentation requested to determine the eligibility of the project for financing through mortgage loans. If the project is determined eligible, owners and or buyers will have better options for financing their units and increasing the projects marketability for resale.

  • Fannie Mae purchases or securitizes mortgage loans secured by units in condo, co-op, and PUD projects that meet Fannie Mae's eligibility requirements. The condominium has been identified as a project in which the documentation requested is needed in order to determine eligibility.

  • The project will be determined ineligible for financing backed by Fannie Mae. Fewer options for affordable financing will be available to homeowners and purchaser of units in the project.

  • Significant deferred maintenance is the postponement of normal maintenance, which cannot reasonably be resolved by normal operations or routine maintenance , and which may result in the following:

    • Advanced physical deterioration

    • Lack of full operation or efficiency

    • Increased operating costs

    • Decline in property value

  • Documentation like board meeting minutes, building/façade inspections, maintenance schedule/reports, and reserve studies and schedules can assist in determining the correct answers and should be provided as part of the documentation.

  • Precedent Management is not a lender. Fannie Mae has contracted Precedent Management to collect the documentation required to determine project eligibility.

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