Valuation Management Group (VMG) is pleased to share a joint bulletin recently issued by FannieMae and FreddieMac (the GSE’s) introducing their Standardized Condominium Project Questionnaires.
The GSE’s require lenders to determine the eligibility of a condominium project when the mortgage loan will be secured by a unit within a condominium project. This involves obtaining a condo questionnaire from the homeowners’ association or a management company which is used to gather information about the number of units in the complex, the construction status of the project, its amenities, financial details, ownership, and insurance among other things.
Until this point, lenders developed their own questionnaires which homeowners’ associations and condominium management companies were asked to complete and return to the lender and/or the appraiser. There was inconsistency in the questionnaires and it was often time-consuming for the associations and management companies, thus creating delays for lenders and appraisers needing the information to underwrite the loan or complete the appraisal. It is not uncommon for homeowners’ associations and management companies to charge lenders a fee at the time the lender requests the completed questionnaire.
The new questionnaires (Full Form – Fannie Mae Form 1076/Freddie Mac Form 476 and Short Form – Fannie Mae 1077/Freddie Mac Form 477) are straightforward, easy to follow and provide a level of consistency welcomed by Condominium Homeowners’ Associations and Condominium Management Companies. VMG shared the new form with Jacqueline Cress-Mills, Senior Property Manager at One River Place Condominiums in Marietta, Georgia and followed up to get her thoughts on the new questionnaire. According to Ms. Cress-Mills, “This is the most simplified form that I’ve seen. I could complete it in 5-10 minutes. The only thing I’d have to look up is delinquency and multiple unit owners. I’m very excited to learn that lenders are being encouraged to use the new standardized form.”
According to the bulletin, use of the new condo questionnaire is optional; however, lenders are being strongly encouraged to begin using the new form. You can access the bulletin by clicking here, and you can access the forms by clicking here for the full form and by clicking here for the short form.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers, and credit unions. We offer the full array of commercial and residential appraisal products and appraisal review services. We take the appraisal process from ordinary to extraordinary.