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AD Mortgage urges FHFA to monitor condo eligibility rule changes
AD Mortgage said proprietary data from more than 750 Florida condominium loans it originated since 2021 showed 53% relied on the Limited Review process.
AD Mortgage is expanding its engagement with policymakers on housing finance issues, starting with a July 1 letter to the Federal Housing Finance Agency that focuses on upcoming condominium project eligibility changes for Fannie Mae and Freddie Mac loans. In the letter, AD Mortgage flagged the end of the Limited Review process and an update to condominium reserve requirements, from 10% to 15%, saying the shift could contribute to tighter credit conditions, particularly in Florida. The company also noted concerns that the changes could increase monthly association dues and make it harder for some borrowers and condo projects to qualify for conventional financing.
HousingWire reported that AD Mortgage’s senior vice president of government affairs and investor relationships, Corey Chubner, said the goal of the initiative is to be a collaborative partner to policymakers. He said the firm does not want the changes delayed or revoked, but it aims to provide insight using internal lending data and spark a dialogue.
AD Mortgage said its recommendations are supported by proprietary lending data on the importance of the Enterprises’ Limited Review process for conventional condominium loans, citing its record in Florida where more than 750 condo loans originated since 2021 used Limited Review, representing 53% of its cohort. The company’s letter was addressed to FHFA director Bill Pulte.