AD Mortgage Urges FHFA on Condo Financing Rules

AD Mortgage has launched a public policy initiative focused on housing finance issues, beginning with recommendations to the Federal Housing Finance Agency (FHFA) regarding condominium financing. In a July 1 policy letter addressed to FHFA Director Bill Pulte, AD Mortgage detailed concerns about impending changes to condominium project eligibility requirements for loans purchased by Fannie Mae and Freddie Mac. This submission follows a June meeting between AD Mortgage leadership and FHFA officials where housing affordability, condominium financing, and other residential mortgage market issues were discussed.

The company's initiative and letter align with existing industry concerns that the proposed changes could lead to increased monthly association dues and create greater difficulties for some borrowers and condominium projects in qualifying for financing. Corey Chubner, AD Mortgage's senior vice president of government affairs and investor relationships, stated in an interview that the initiative aims to foster a "collaborative partner" relationship with policymakers. Chubner elaborated on the June meeting, noting discussions about changes to condo guidelines, the sunset of the limited review process, and an update to reserve requirements from 10% to 15%. AD Mortgage expressed concern that these changes might exclude creditworthy borrowers from conventional financing options.

AD Mortgage's recommendations are supported by proprietary lending data that highlights the significance of the Enterprises' Limited Review process for conventional condominium loans, particularly in Florida. The company's submission aims to influence the FHFA's decisions on these critical financing rules, emphasizing the potential impact on market accessibility and affordability for condominium buyers and projects.