A new form is now available for authorized HOA representatives and Freddie Mac Seller/Servicers seeking information as to whether a condominium project has been assigned a “Not Eligible” status. The Not Eligible Status Data Form can also be used to appeal a condo project’s Not Eligible status. A project status can change if additional information is provided or if the identified issues are remediated and the project then meets applicable requirements.

For Sellers, notification about a condo project’s Not Eligible status is also available through Condo Project Advisor®, Loan Product Advisor® (LPASM), Loan Quality Advisor® and Loan Selling Advisor®.

As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2023-24, the Not Eligible status is a new Project Assessment Request (PAR) status that Condo Project Advisor will assign beginning February 26.

A mortgage secured by a condo unit in a project that has a Not Eligible status is ineligible for sale to Freddie Mac. This status is assigned when the condo project does not meet certain project review and general eligibility requirements as outlined in the Guide.

By communicating that a project has a Not Eligible status, we’re assisting Sellers earlier in the origination process by identifying condo projects that don’t meet our requirements.

Also, if a Seller, or a Seller’s third-party originator, comes across information that could impact or that is inconsistent with, a condo project’s PAR status finding, they must notify Freddie Mac no later than five days after becoming aware of such information.

PAR for the Course: Transparency and Certainty in More Ways than One

Using Condo Project Advisor is the quickest way to learn about a condo project’s eligibility and to decide your next steps.

Through its PAR feature, Condo Project Advisor shares several project statuses with information Sellers can act on so they can be confident in their project reviews. “Project Certified” is the best PAR status a project can receive from Condo Project Advisor. For this status, Sellers only need to do minimal project review work and can save time, effort, and costs. A Project Certified status provides you with greater confidence in the quality of your loan originations.

Here’s more good news: Certain PARs will allow you to submit a request for projects to be assigned a Project Certified status at no charge. If you see the Submit for Project Certified Review button in your PAR certificate, make sure to take advantage of it. If Condo Project Advisor assigns a Project Certified status, you’ll be able to enjoy the benefits for the loan you are originating and underwriting and potentially for subsequent PARs issued for that same project.

Get Started with Condo Project Advisor Today

If you’re already a Condo Project Advisor user, you can check if a project has a Project Certified status or start using the Project Certified submission review process.

Not a Condo Project Advisor user? It’s easy to get access. Start taking advantage of everything Condo Project Advisor has to offer through this job aid.