Improvements being made to condominium requirements at the Federal Home Loan Mortgage Corp. include valuation process enhancements.
Freddie Mac is updating its requirements to allow all comparable sales from outside new condominium projects when there have been no sales yet.
But the appraiser must comment on the marketability of the development or project and make a case for using the outside comparable sales.
The updates, which are available for new submissions and resubmissions to Loan Product Advisor on or after July 16, also apply to planned-unit developments, according to Bulletin 2018-10 issued Wednesday.
Freddie said that beginning Thursday, it has added another review type for condominiums.
Lenders are not required to determine the existence or adequacy of the project liability insurance, fidelity insurance or employee dishonesty insurance for a detached unit
Eligibility for automated collateral evaluation appraisal waivers will include loans secured by condominiums. They will provide relief for representations and warranties tied to the value, condition and marketability of the property.
The change impacts new submissions and resubmissions to Loan Product Advisor on or after July 16.
