More Clarity in Condo Project Advisor
A new Project Assessment Request (PAR) finding, the “Not Eligible” status, in Condo Project Advisor® gives you more information about a condo project early in your origination process. When a project receives a Not Eligible status PAR finding, it means the project doesn’t meet certain project review and general eligibility requirements (see Single-Family Seller/Servicer Guide (Guide) Section 5701.2). Loans secured by units in a project with a Not Eligible status are not eligible for sale to Freddie Mac.
Not Eligible Inquiries and Appeals
If you’re a Condo Project Advisor user and you receive a Not Eligible status PAR finding, feedback messaging will detail which specific project review and/or general eligibility requirements have not been met.
A condominium project without a Not Eligible status doesn’t mean that the project complies with all of Freddie Mac’s project review and general eligibility requirements or that Freddie Mac will purchase any loans secured by a unit in that project. You’ll still need to ensure compliance with all applicable requirements in Guide Chapter 5701 and all other requirements of the purchase documents for the loan to be eligible for sale to Freddie Mac.
Freddie Mac Sellers or authorized representatives of homeowners associations (HOAs) can inquire about a project’s Not Eligible status or submit an appeal of the status. You can do this by submitting the Not Eligible Status Data Form found on our Condominium Unit Mortgages webpage. Also on that page is a tutorial regarding the status inquiry and appeal process.
Learn more about the Not Eligible Status Data Form.
Feedback Results Across Loan Advisor
Beginning February 26, 2024, Loan Quality Advisor® and Loan Selling Advisor® will be updated to include feedback messages that reflect the Not Eligible PAR status. These messages will initially be warning messages, but they will transition to critical on April 29, 2024.
Additionally, Loan Product Advisor® (LPASM) will indicate that the loan is not eligible for sale to Freddie Mac and return a feedback message stating why the project received a Not Eligible status.
Access Training and Tutorials
Review our Condo Project Advisor FAQs and training resources – with access to on-demand videos, tutorials, references tools and live webinar opportunities. Learn more about the new Not Eligible status, as well as additional features in Condo Project Advisor that can help you streamline your condo loan origination.
Not Using Condo Project Advisor? Get Started Today
If you’re not already using Condo Project Advisor, we encourage you to start gaining insights into the eligibility of your condo loans earlier in the origination process. Ask your organization’s Access Manager administrator to grant you access today – or if you’re an administrator, request access for your organization through Access Manager.