FNMA/FHLMC Condo & PUD Definitions - Wintrustmortgage.net

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Search for condo project Click on underlined link to display project . details Status must show approved Any approval conditions listed must be met. Note: FHA has standard condo conditions that must be met that Fannie Me requires for these approvals as well (e.g. 70% owner-occupancy requirement) Page 4 of 9 5/15/2009-Wholesale
CPM Expedited Review (S) (Established and all 2-4 unit projects): The Expedited Review process (for Condos only) is followed when the transaction does not meet the Limited Review, the project is not on the FHA Approved Project List or the Fannie Mae Accepted Condominium Development List. Fannie Mae’s CPM (Condo Project Manager) will be utilized by the underwriter to provide specific project acceptance for attached and detached, established, and 2-4 unit condominium projects. Underwriters will perform this function by searching for CPM for projects already entered and accepted by CPM or by adding a project to determine acceptance, Documentation needed: Completed HOA certification** Appraisal Master Certificate of Insurance* Current budget and legal documents Fannie Mae’s General Warranty of Project Eligibility*** The following additional criteria will apply: For established projects, no more than 15% of condo/association fee payments can be more than one month delinquent. The homeowners’ association (HOA) budget (actual for established) must be reviewed for all projects (except 2-4 unit projects) to determine adequate funding of replacement reserves for capital expenditures and deferred maintenance (at least 10% of the budget) and provides adequate funding for insurance deductible amounts. Legal Documents meet Fannie Mae requirements as noted in section marked Legal Requirements. The project may not be comprised of manufactured homes. *Insurance Requirements: Liability Insurance General liability of $1,000,000 per occurrence is required for all condos. Borrowers are required to obtain a ‘walls-in’ Hazard Insurance coverage policy (commonly know as HO-6) unless the lender can document the master insurance policy of HOA covers the interior of the unit. The HO-6 policy must provide coverage in the amount of at least 20% of the appraised value. The standard requirement for a maximum 5% deductible also applies o HO-6 “Walls In Insurance” must be escrowed. Liability insurance is not required for properties located in a PUD. The following are not permitted with respect to master or blanket project insurance: A blanket policy that covers multiple unaffiliated condominium associations or projects, or; A self-insurance arrangement whereby the owners’ association is self-insured or has banded together with other unaffiliated associations to self insure all of the general and limited common elements of the various associations. Page 5 of 9 5/15/2009-Wholesale
Page 1 and 2: FNMA/FHLMC Condo & PUD Definitions
Page 3: Check state list for condo project
Page 7 and 8: ***General Warranty The lender repr
Page 9: PERS Submission Process Review Requ

FNMA/FHLMC Condo & PUD Definitions - Wintrustmortgage.net

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