FNMA/FHLMC Condo & PUD Definitions - Wintrustmortgage.net

the project sponsor or developer is named as a party to current litigation that relates to
the project.
Project consisting of more than 20% commercial space.
Cannot close or deliver for purchase more than 30% of the units in project.
New construction where HOA is not in control.
Owner-occupancy ratio calculation is updated to clarify that Real Estate Owned
(REO) units for sale are treated as owner-occupied units.
New condominium projects in which the property seller offers sales/financing
structures in excess of the maximum allowable contributions for individual loans.
FNMA PERS
FNMA Project Eligibility Review Services
Fannie Mae is reintroducing its condominium project review function under the name of
Project Eligibility Review Service (PERS). Must be classified as Type (T) - Fannie Mae
Review. Effective 01/15/09, all Florida condo projects that do not meet the "Established
Project" guidelines must be submitted to PERS for approval; PERS is an optional service
for other states and projects. There is a fee charged in connection with this review. The
project must be on Fannie Mae's PERS approved list located on www.eFannieMae.com
and the approval type must be indicated as "Final Project Approval", prior to loan
closing. If the project was not approved prior to 1/15/09, Fannie Mae PERS approval is
required.
Evidence of project approval must be provided for all new or newly-converted projects in
Florida. For any loan where the project was approved via Lender Full Review to be
eligible for agency delivery, the originator must provide Wintrust with pipeline coverage
as of 1/15/09; if the project was approved via CPM prior to 1/15/09, the project approval
may be honored until the expiration date. Otherwise, Fannie Mae PERS approval is
required
Limited Reviews are not available if Wintrust Mortgage or the
Invest/Correspondent is named as a preferred lender by either the developer or the
HOA.
For established attached projects where the subject is an investment property,
financial institution-owned REO units that are for sale (not rented) may be
counted as owner-occupied units to meet the 51% presale requirements.
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.
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