No one wants to be on a blacklist.
But that’s where a number of properties are finding themselves, as lending firms Freddie Mac and Fannie Mae have changed their criteria following the collapse of the Surfside, Florida, condominium in 2021, the Daily News reported.
That’s caught some would-be condo buyers by surprise.
The list, which stands at about 1,400 properties, is also growing.
The net effect is that buyers or owners looking to refinance have to pay more in interest to get mortgages.
The Federal Housing Administration keeps a similar list of properties ineligible for FHA mortgages, but the list is public.
Real estate professionals say the Fannie Mae and Freddie Mac list should also be public.
“We think it would be a real benefit to the industry — not just servicers and lenders but also real estate agents or the HOAs,” Ken Fears, NAR’s director of conventional finance and valuation policy, told the outlet. “If there’s erroneous information about the property on this registry, there’s no way for an HOA or agent to know about it or to contest it, and that’s very problematic.”
Source — Daily New Ted Glanzer