It has been about half a year since the terrible collapse of Champlain Tower South in Surfside, Florida. Because of this tragedy, condominium and homeowners’ association boards and owners have been concerned about the structural safety of their buildings. And now Associations are facing hard questions from mortgage companies concerning both maintenance and capital reserve balances.
Role of Fannie and Freddie in Mortgage Lending
Fannie Mae and Freddie Mac are two governmental entities that guarantee mortgage loans for residential properties, like condominiums and homeowners’ associations. They put out guidelines – requirements for association budgets, documents and practices – that a community needs to meet for Freddie Mac or Fannie Mae to back a mortgage.
Continue Reading Surfside Towers Collapse Causes Tighter Maintenance and Capital Reserve Requirements for Associations