Because of so many foreclosures, Fannie Mae, Freddie Mac and the Federal Housing Administration should temporary suspend their requirements for owner-occupied units in condominiums to facilitate condo sales, according to the National Association of Realtors. Specifically, the agencies should not count bank-owned units toward the owner-occupancy requirement. Currently, the government sponsored enterprises and FHA will not finance condo units unless 51% of the units are owner-occupied. NAR also wants the 51% ratio reduced to 48%. "Reducing the owner-occupancy ratio and not including bank-owned REO properties will help condominium developments with significant percentages of REO properties," NAR says in letters to FHA and the GSE regulator.
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