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Housing groups urge FHFA to adjust planned condo lending rule changes
The groups warn that a shift from streamlined condo reviews to full reviews starting Aug. 3 and a 15% reserve requirement effective Jan. 4, 2027 could raise costs and restrict credit.
HousingWire reports that CHLA, CAI, and NAMB sent a July 8 letter to the FHFA and the GSEs, urging changes to upcoming condominium lending rules at Fannie Mae and Freddie Mac.
The groups said the planned policy updates could increase costs and tighten credit availability for borrowers, and they asked for delays, clearer critical repair standards, and better access to project eligibility data.
They flagged that full condo reviews are scheduled to begin Aug. 3 and that a 15% reserve requirement will take effect Jan. 4, 2027, arguing that moving away from limited reviews could expand documentation requirements.
CHLA, CAI, and NAMB also cited research suggesting community associations represent a large share of the housing stock, arguing that condos remain an attainable path to homeownership for first-time buyers, moderate-income households, seniors, and buyers in higher-cost markets.