The Federal Housing Finance Agency (FHFA) today issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) eligibility requirements for mortgages in condominium (condo), cooperative (co-op), and planned unit development (PUD) projects where a large portion of units are offered for short-term rental (30 days or less) or are used primarily for the purpose of vacation or recreational lodging. These projects are often informally referred to as “condotels” or resort condominiums. The information that FHFA is requesting through the RFI will help the Agency determine whether or not changes or clarifications to Enterprise policies are necessary to ensure more accurate and consistent project eligibility assessments.
“Today’s RFI will help FHFA take the appropriate steps to ensure that all sellers understand and apply the Enterprises’ eligibility requirements in a way that minimizes repurchase risk and the risk to the Enterprises,” said Director Mark Calabria.
FHFA invites feedback on all aspects of the RFI within 60 days of publication, no later than July 5, 2021. Comments should be submitted electronically or via mail to the Federal Housing Finance Agency, Office of Housing and Regulatory Policy, 400 7th Street SW, 9th floor, Washington, D.C., 20219.
RFI