Fannie Mae and Freddie Mac Rules Every Condo Board Must Know | Ep. 102

Can a homeowner with a perfect credit score still lose their mortgage? Yes, if their condominium association does not meet Fannie Mae and Freddie Mac guidelines. In this episode of The Uncommon Area, HOA attorney Clint Brown joins host Matthew Holbrook to break down the Fannie Mae and Freddie Mac lender letter that is reshaping condominium loan approvals nationwide.

Clint explains why the limited review process is gone, why every condo loan application now goes through a full review, and what HOA boards and community association managers must do to stay compliant. Topics covered include the shift from actual cash value to 100% replacement cost insurance coverage, the $50,000 per unit insurance deductible cap, the 36 month reserve study requirement, what it actually means for an association to be fully funded, and the increase in required reserve contributions from 10% to 15% of annual assessment income.

Whether you serve on an HOA board, manage condominium associations, or are a condo owner preparing to sell, this episode gives you a practical compliance roadmap to avoid loan denials and protect your community's fair market value.

0:00 Introduction: Fannie Mae and Freddie Mac Condo Guidelines

1:29 Why HOA Boards Should Care About Fannie Mae and Freddie Mac

3:19 The Cost of a Denied Condo Loan

4:16 The March Lender Letter Ends the Limited Review

7:52 Three Compliance Criteria Fannie Mae and Freddie Mac Changed

8:46 Condo Insurance Requirements: Replacement Cost vs Actual Cash Value

12:03 Reserve Study Requirements and What Fully Funded Means

15:59 Reserve Contribution Rules: 10% to 15% of Assessment Income

18:22 Does the HOA Blacklist Still Exist?

21:19 What to Do When a Condo Loan Is Denied

22:28 Accurate Reporting and Fraud Risk for HOA Boards

24:27 Closing Thoughts

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