Condominium Projects

Effective with new loan applications dated on or after September 30, 2025, ServiSolutions is aligning with Fannie Mae SEL 2025-05 and Freddie Mac Bulletin 2025-9 updates to condominium project review requirements. While these updates are not required until September 30, 2025, participating lenders are encouraged to implement these changes immediately. However, if a lender becomes aware of any of these ineligible project actions or proceedings prior to September 30, 2025, the new policy must be applied immediately.

The updates introduce projects that are terminating or involved in insolvency proceedings as an ineligible project type.

• Projects Terminating or Involved in Insolvency Proceedings:
• A project must not be the subject of an action that would cause the project to cease to exist, including termination, deconversion, or dissolution of the project’s legal structure.
• A project must not be the subject of a voluntary or involuntary bankruptcy, insolvency, liquidation, or receivership proceeding, or any substantially similar action under state or federal law.
• This includes any project that has voted on or is in the process of voting on any of the actions or proceedings described above.

These requirements apply to all mortgages secured by condominium units in condominium projects, regardless of the project review type. The requirements also apply to loans eligible for a waiver/exemption of project review.

As a reminder, lenders must notify Fannie Mae’s Project Standards team and Freddie Mac’s Project Info Team within five business days of becoming aware of an ineligible condo project characteristic.