CAR Past President Shares Your Stories Illustrating Impacts of New Guidelines with Fannie Mae | Chicago Association of REALTORS®

We heard your concerns about the recent Fannie Mae and Freddie Mac lending guidelines and we asked you to share personal stories about how these guidelines have impacted your transactions.

Past President Tommy Choi, Keller Williams ONEChicago, took your stories to a meeting with Fannie Mae and fellow REALTOR® representatives from South Carolina and Florida. They discussed the addendum to Fannie Mae Form 1076, which helps lenders collect data to determine condo project eligibility, and shared your feedback directly with Fannie Mae leadership. The meeting was initiated by the National Association of REALTORS® based on disruptions in the condominium market and member feedback.

Some of the stories shared included:

  • Misinformation regarding the lending form.
  • Confusion around hiring a structural engineer for a townhouse versus a condominium building.
  • Details about Homeowner Associations (HOAs) who are refusing to complete the Fannie Mae Form, particularly smaller boards concerned about risks and potential ramifications of questions asked in the form.

Based on your stories, we know that these guidelines have deterred buyers from purchasing units or added significant delays to a transaction. These delays have caused some buyers to pay more for units as interest rates increased and their locked-in rates expired. And, in some cases, deals have not closed, which greatly impacts both buyers and sellers.

Another unintended consequence is increased pressure from HOAs to complete a reserve study. In many cases, this may lead to a special assessment that can have an impact on owners that are on a fixed income or have low income.

Multifamily buildings and condominium units provide an essential form of homeownership in cities throughout the country. The unintended consequences of the Fannie Mae form continue to evolve. By sharing your story, you can help shape the decisions Fannie Mae incorporates into this form over the coming weeks or months and provide a strong, personal voice to these efforts.

If you have been impacted by the Fannie Mae guidelines, click here to share your story.