The National Association of Mortgage Brokers has requested that the Federal Housing Finance Agency for leeway in mandatory implementation dates related to limited and streamlined condo reviews.
NAMB wants at least 12 more months to
White said he recognizes that there are "real concerns" related to "deferred maintenance, chronically underfunded reserves and the lesson of recent structural failures" driving the changes, but without more implementation time and coordination they could prove disruptive.
"We are not asking that these goals be abandoned. We are asking that the industry be given a realistic, workable transition period," White wrote in a letter to Bill Pulte, director of the FHFA, which has been informally renamed U.S. Federal Housing.
"Fannie and Freddie are implementing their new policies on time so that more Americans can afford to buy a home and everyone's financial security is protected," an FHFA spokesman said in an emailed statement.
What NAMB is asking for and why
The broker group is specifically seeking alignment and an extension of at least 12 months for the reserve increase to 15% from 10% set for Jan. 4, and the end to what Fannie Mae and Freddie Mac respectively call limited and streamlined reviews, which is scheduled for Aug. 3.
Both demand extra work and budgeting on the part of condominium associations and that could affect homeowner affordability and loan processing, White wrote.
"Many associations cannot assemble these packages quickly," he said, referring to the full reviews that will need to be done consistently when limited ones end.
"The predictable result is longer closing timelines, localized bottlenecks, and increased transaction fallout," White added.
The NAMB executive also said associations are unlikely to be able to adjust to the reserve increase in time to avoid a financial shock to homeowners who reside in condo buildings.
The Jan. 4 deadline "will force many boards to choose between a sizable dues increase and a special assessment, each of which strains owners," he wrote.
White additionally called for more consolidation of rolling deadlines and not to rule out the streamlined reviews entirely for efficiency purposes.
The request comes as some other public officials have shown some interest in delaying measures aimed at addressing condominium risks to ease the impact on buildings and unit owners.
Florida Governor Ron DeSantis
