Sellers on some Freddie Mac mortgages will be exempt from condominium project requirements.
The McLean, Va.-based firm outlined the expanded requirements today in Bulletin No. 2010-8.
Freddie noted that the condominium market in the Sunshine State has been among the nation’s hardest hit. The changes are designed to help the market.
According to the bulletin, Guide Chapter 42, Special Warranties for Condominiums, is being revised to exempt Freddie Mac sellers from condominium project requirements. In addition, sellers will be exempted from certain representations and warranties for Florida purchase transactions.
In order to qualify for the exemption, the mortgage file must include documentation verifying that Freddie already owns or manages the first lien on the unit. Freddie is also requiring that the existing loan was closed prior to this year.
The program applies to settlement dates through March 31, 2011.
