Condo Project Advisor FAQ

It’s a Freddie Mac Loan Advisor^® tool that among other things allows Freddie Mac authorized Sellers, through Project Waiver Requests (PWRs), to easily request unit-level exceptions for established condominium projects early in the origination process. Unit-level waivers are for otherwise ineligible condo projects that require special review or examination for one or more eligibility criteria.

It also allows authorized Sellers, through Project Assessment Requests (PARs) or Project Certified Submissions (PCS), to obtain feedback (PAR findings) about a condo project’s compliance with the project review requirements assessed by Condo Project Advisor.

The PWR is a workflow-based capability which allows authorized Sellers to request and track unit-level condo project eligibility waivers for condo projects that need special consideration. Sellers enter required data elements and upload necessary documentation for each requested waiver submission. Each PWR is assessed, and if approved, that determination is provided in the Condo Project Advisor Feedback Certificate. 

The PAR allows Sellers to enter a condo project’s name and address to obtain feedback (PAR findings) about that project’s compliance with the project review requirements assessed by Condo Project Advisor.
The PCS is a workflow-based capability which allows authorized Sellers to submit condominium projects for a Project Certified review when specified on certain PAR findings. Sellers enter the required data elements and upload the required minimum documentation for each PCS request. If Condo Project Advisor finds that the condominium project complies with the requirements for Project Certified, the condominium project will be assigned a Project Certified status.

Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to:

• For a mortgage with an approved PWR, the project review and eligibility requirements identified on the Condo Project Advisor Feedback Certificate; and
• For a mortgage with a PAR finding (including projects granted a Project Certified status through the PCS process), the project review requirement(s) assessed, if Condo Project Advisor found that the project complied with the requirement(s) and the PAR findings are detailed on the Condo Project Advisor Feedback Certificate.

See Single-Family Seller/Servicer Guide (Guide) Section 5701.10 and 5701.11 on PAR and PWR for full details.
 

No. For PWRs, a waiver exception is for a specific mortgage secured by a condo unit within an established condominium project. For PARs,  Condo Project Advisor focuses on certain project review requirements. So, a PAR finding only covers a project’s compliance with the project review requirements that the tool assesses and that PAR finding is applicable only to the mortgage identified on the Condo Project Advisor Feedback Certificate. It is not transferrable to other mortgages secured by units in the same project. 

Refer to Q2 under the Green and Yellow PAR Status subhead for a list of requirements Condo Project Advisor does not assess for streamlined review and established condominium projects review types and Q2 under the Project Certified PAR Status for requirements for which  Sellers remain responsible for condominium projects with a Project Certified status.

Yes. Condo Project Advisor is only available to Freddie Mac approved Sellers. The tool is not available to correspondent lenders or mortgage brokers who are not Freddie Mac-approved Sellers. See Section 5701.1 for full details on PARs.

No, it’s free. There is no fee to use Condo Project Advisor.

It is not required that a loan be submitted through LPA to receive a PWR through Condo Project Advisor and be eligible for sale to Freddie Mac.

It is also not required that a loan be submitted through LPA to receive a PAR finding. However, it is required that it be assessed by and processed through LPA to be eligible for sale to Freddie Mac.

Yes. If the aggregator is a Freddie Mac authorized Seller and makes a decision to accept the mortgage, they can sell that mortgages to Freddie Mac using the PWR or PAR finding.

No. Approved PWRs and PAR findings do not affect delivery pricing.

No. Condo Project Advisor does not have system-to-system access.

Yes. Training is available via Freddie Mac Learning.

You can request provisioning for Condo Project Advisor through Freddie Mac Access Manager. If your company is already using Freddie Mac Access Manager, your executive administrator will need to use the Modify Administrator Access authorization workflow to update the existing company administrator’s access authorization to allow provisioning for Condo Project Advisor. Once they’ve done that, they can use the Create New User with Access or Add User Access workflows to edit/add users to allow use of Condo Project Advisor. For more information, view the Condo Project Advisor Access job aid or visit the Freddie Mac Access Manager Help Center.

No. If you can already access Condo Project Advisor, there are no additional steps you need to take to be able to submit PARs.

Condo Project Advisor is accessible through the Loan Advisor portal. 

Information on how authorized representatives of HOAs can submit information requests will be posted to the Condominium Unit Mortgages webpage by Feb. 26, 2024.

A PAR finding consists of the status Condo Project Advisor assigns to the project (Green, Yellow, Incomplete Assessment or Project Certified) and related feedback messaging.

• Project Certified – Condo Project Advisor finds the condominium project complies with the requirements it assesses for this status. See Section 5701.1(e) for applicable requirements.
• Green – the condominium project complies with all requirements assessed.
• Yellow – the condominium project does not comply with one or more of the requirements assessed.
• Incomplete Assessment – unable to perform the assessment.
• Not Eligible – (effective 2/26/2024) the condominium project does not meet certain project review and general eligibility requirements.

We are continuously reviewing established projects for updates and additions to Condo Project Advisor. We do not accept requests to add projects to Condo Project Advisor.

Condo Project Advisor assesses only the project review requirements in the following Guide Sections for condominium projects with a Project Certified status:

See Q2 below for requirements for which Seller remains responsible when Condo Project Advisor assigns a Project Certified status to an Established Condominium Project.

When Condo Project Advisor assigns a Project Certified status to the project, the Seller must ensure compliance with the general condominium project eligibility requirements in Section 5701.2(b).

Sellers must also comply with the owner occupancy requirements for investment property mortgages in Section 5701.5(b)(2) when specified on the Condo Project Advisor feedback certificate.

The provisions of Section 5701.10 applicable to projects with a Project Certified status are also applicable to projects with a Project Certified status obtained through a PCS review.

Condo Project Advisor assesses only a limited number of projects for this status.

Condo Project Advisor assesses the following project review requirements for the streamlined review (Guide Section 5701.4) and Established Condominium Projects (Guide Section 5701.5) project review types.

Condo Project Advisor DOES NOT assess the following project review requirements for the streamlined review (Guide Section 5701.4) and Established Condominium Projects (Guide Section 5701.5) project review types for a Green or Yellow PAR. See Q2 under the Project Certified PAR Status subhead when Condo Project Advisor assigns a Project Certified status to an Established Condominium Project.
 

Condo Project Advisor also DOES NOT assess the following project review requirement for the Streamlined Review (Section 5701.4) project review type. See Q2 under the Project Certified PAR Status subhead when Condo Project Advisor assigns a Project Certified status to an Established Condominium Project.
 

Condo Project Advisor DOES NOT assess the following project review requirements for the Established Condominium Projects (Section 5701.5) project review type. See Q2 under the Project Certified PAR Status subhead when Condo Project Advisor assigns a Project Certified status to an Established Condominium Project.
 

Condo Project Advisor DOES NOT assess the general condominium project eligibility requirements in Section 5701.2(b).

When Condo Project Advisor assigns a Green status to the project, the Seller does not need to ensure compliance with all project review requirements assessed by Condo Project Advisor. The PAR findings will include feedback that identifies those requirements.

Sellers must also ensure compliance with the project review and general eligibility requirements that Condo Project Advisor does not assess.

When Condo Project Advisor assigns a Yellow status to the project, the condominium project does not comply with one or more of the requirements assessed by Condo Project Advisor. The PAR findings will include feedback that identifies those requirements, and the Seller must ensure compliance with them. Since the loan must be secured by a condo unit in an established condo project, if one of the identified requirements is that the project may not be an established condo project, the Seller must first determine that the project meets the Glossary definition of an Established Condominium Project in the Single-Family Seller/Servicer Guide.

Sellers must also ensure compliance with the project review and general eligibility requirements that Condo Project Advisor does not assess.

When Condo Project Advisor assigns an Incomplete Assessment status, the Seller must ensure compliance with all project review requirements (Guide Section 5701.2(a)) and general eligibility requirements (Guide Section 5701.2(b)). If the Feedback Certificate message also indicates that the condo project may be in need critical repairs, the project may be an ineligible project under the requirements of Guide Section 5701.3(n). You must determine that the condominium project is NOT in need of critical repairs, and comply with Guide Section 5701.3(n), as well as all other project review and general eligibility requirements in Guide Section 5701.2(a) and 5701.2(b). 

The PAR findings will return an Incomplete Assessment when Condo Project Advisor is unable to perform the assessment.

Additionally, if Condo Project Advisor identifies the condominium project as one that may need critical repairs, the PAR findings will return an Incomplete Assessment and state “This Condominium Project may be in need of Critical Repairs.”
 

Unless the project receives a Project Certified status PAR finding, Condo Project Advisor doesn’t assess compliance with our requirements for projects in need of critical repairs. The new Condo Project Advisor PAR feedback message is not an assessment or determination that the specific condo project needs critical repairs. It’s a notice that the project MAY need critical repairs.

Question: If I have information that a project does not meet another secondary market participant’s condo underwriting requirements (e.g., does not meet Fannie Mae, FHA or VA condo underwriting requirements), do I need to provide this information to Freddie Mac under the new requirement in Guide Section 5701.10(d)(vi), Changes to PAR findings? [New 02/26/2024]

Answer: No, Sellers are not required to notify Freddie Mac that a project may not meet another secondary market participant’s condo underwriting requirements.

Sellers are required to contact Freddie Mac at [email protected] with information that could impact, or is inconsistent with, a project’s PAR findings. The information that must be provided to Freddie Mac should relate only to Freddie Mac’s project review and general eligibility requirements and not to any other secondary market participant. See Guide Section 5701.10(d)(vi) for full details. [New 02/26/2024]

Question: If I have information that a project does not meet certain Freddie Mac project review or general eligibility requirement(s) even though the Condo Project Advisor Feedback Certificate indicates the requirement(s) is/are met, do I need to provide this information to Freddie Mac under the new requirement in Guide Section 5701.10(d)(vi)? [New 02/26/2024]

Answer: Yes, Sellers are required to contact Freddie Mac at [email protected] with any information that could impact or is inconsistent with a project’s PAR findings. See Guide Section 5701.10(d)(vi) for full details.

Condo Project Advisor will specify on certain PARs if the condominium project may be submitted for a Project Certified review.

Seller must submit all the following documents to Freddie Mac for review:

• Seller full review questionnaire dated within 120 days of PCS request date
• Condominium Project Addendum Form 476A or similar documentation to determine if a project is in need of Critical Repairs
• Any structural and/or mechanical inspection that has been completed within three years of the Seller’s PCS request date
• Current approved budget
• Such other documentation/information as Freddie Mac may request from time to time

No. The form may be a proprietary questionnaire specific to your firm.

No. However, you must provide documentation that contains information relating to the physical condition of the project. Some examples of documents include but are not limited to:

• Homeowners association board meeting minutes
• Engineer’s reports
• Structural and/or mechanical inspection reports
• Reserve studies
• List of necessary repairs provided by the HOA or management company
• List of special assessments provided by the HOA or management company
  Other substantially similar documentation

Incomplete PCS requests will not be reviewed until the Seller has provided all the required documents.

We will make every effort to respond with a decision on your PCS within five business days of your submission of all required documentation listed in Guide Section 5701.10(f)(ii).

Yes, provided the mortgage meets the requirements of one of our condominium project review types and all other applicable requirements of the Purchase Documents. See Guide Chapter 5701 for details.

Yes. Mortgages with approved PWRs or PAR findings must be delivered to Freddie Mac within 120 days after the Note Date. For PARs with Green or Yellow status findings, the Note Date of the applicable mortgage must be within one year of the issue date of the Condo Project Advisor Feedback Certificate. 

For PARs with Project Certified status findings, the Note Date of the applicable mortgage must be within 120 days of the issue date of the Condo Project Advisor Feedback Certificate.

Because the expiration is triggered by the Note Date, there is no notification within Condo Project Advisor if a PWR or PAR has expired. Sellers are responsible for monitoring expiration dates.

If your PWR expires, you must submit updated project information to Condo Project Advisor. If your PAR expires, you must submit the project’s name again for a new PAR finding.

Sellers may request unit-level waivers for condo projects in the following categories:

• Delinquent Assessments – condo projects where more than 15% of the total number of units are 60 or more days delinquent on HOA Assessments.
• Excessive Commercial Space – condo projects with excessive commercial or non-residential space.
• Leased Amenities – condo projects in which the unit owners do not possess sole ownership of the common elements.
• Pending Litigation (including Alternative Dispute Resolution (ADR) proceedings) – condo projects with pending litigation (involving non-minor matters, etc.) or ADR proceedings.
• Project Unit Occupancy (Investment Properties) – condo projects in which more than 50% of the project units are used as investment properties.
• Reserves – condo project budgets with less than 10% allocated to replacement reserves.
• Single Entity Ownership – an individual/single entity (e.g., investment group, Housing Finance Agency (HFA), partnership or corporation) that own more than a certain number of units in the condo project (e.g., for projects that have 21 or more units, a single-entity that owns more than 25% of the units).

No, PWRs that are submitted for requirements outside of the designated categories will be cancelled.

You should upload the questionnaire that you are using to underwrite the loan. This may be a proprietary questionnaire specific to your firm, or the Government Sponsored Enterprise (GSE) questionnaire.

Yes. You should upload the required documents based on the waiver category to help with our decisioning process. Information on both required and recommended documents is available on the applicable data entry screen and in the Condo Project Advisor Project Waiver Request user guide.

A Loan Advisor portal notification alert and email (if you select this option) will be sent so you know whether your request has been approved or denied. If your request is approved, the tool will issue a Condo Project Advisor feedback certificate that summarizes your exception request and indicates that your request was approved. The feedback certificate is available in PDF format and may be printed or saved. You must keep the feedback certificate in the loan file in the event it is selected for quality control or otherwise requested by Freddie Mac.

We will make every effort to respond with a decision on your PWR within two business days of your submission, complete with all necessary information and documentation.

Condo Project Advisor will assign a Not Eligible status when certain project review and general eligibility requirements have not been met.

When Condo Project Advisor assigns a Not Eligible status to a condominium project, Freddie Mac will not purchase any mortgage secured by a condominium unit in such condominium project.

Appeals can be submitted by Sellers or authorized representatives of the homeowners association (HOA) by completing a Not Eligible Status Data Form.
Review this video about making a status inquiry and/or appeal.

Freddie Mac Seller/Servicer: If the Freddie Mac Loan Advisor® tool you are using does not provide the specific project review and/or general eligibility requirement(s) that have not been met, you can call the Customer Support Contact Center (800 FREDDIE) or submit a Not Eligible Status Data Form requesting the information.

Authorized representatives of HOAs can also request information by completing the same form.

Review this video about making a status inquiry and/or appeal request.

An authorized HOA representative is either a member of its board of directors or its project property manager. Freddie Mac defines a homeowners association (HOA) as an association comprised of unit owners that maintains the common elements for the benefit of the unit owners. In a condominium project, the association has no ownership interest in the common elements.

Question: Is there any way a mortgage secured by a unit in a project that has been assigned a Not Eligible status can be sold to Freddie Mac (e.g., pursuant to Reciprocal review (Guide Section 5701.9), Exempt From Review (Guide Section 5701.7), under a negotiated term of business or otherwise.)? [New 2/26/2024]

Answer: There are no exceptions. There is no other way to sell to Freddie Mac a mortgage secured by a unit in a project that has been assigned a Not Eligible status. See Guide Section 5701.10(d)(v).

The Not Eligible status is a Condo Project Advisor PAR finding (see Guide Section 5701.10 for details) for a particular project. We will not provide the number of projects or a list of projects with any PAR finding status (e.g., Green, Yellow, etc.), including the Not Eligible status PAR finding.

Question: How is a project’s Not Eligible status conveyed in Condo Project Advisor, Loan Product Advisor^® (LPA^SM), Loan Quality Advisor^® and Loan Selling Advisor^®? What if the Not Eligible status of a project cannot be assessed due to a system error or cannot be validated (Loan Selling Advisor and Loan Quality Advisor)?

Answer: Messages will be returned in Condo Project Advisor, LPA, Loan Quality Advisor and Loan Selling Advisor including messages indicating Condo Project Advisor is unavailable. For information on feedback messages, see the following:

• Condo Project Advisor feedback messages
• LPA feedback messages

Subject unit address is used and not the project’s name. The project name will not be provided in the LPA, Loan Quality Advisor or Loan Selling Advisor messages.

Mortgages secured by a condominium unit in a condominium project with a Not Eligible status are ineligible for sale to Freddie Mac, even if the first time the Seller receives a message regarding the project’s Not Eligible status and the mortgage’s ineligibility for sale is in Loan Selling Advisor. There are no exceptions. See Guide Section 5701.10(d)(v).

Beginning on February 26, 2024, Sellers will receive a message in Loan Selling Advisor stating either: (i) that the mortgage is secured by a unit in a condominium project that has a PAR finding of Not Eligible in Condo Project Advisor and is ineligible for sale to Freddie Mac or (ii) that the Not Eligible status of a condominium project cannot be validated and the mortgage must be reassessed at a later time. Note that even though this message doesn’t stop the delivery of this mortgage, the mortgage is not eligible for sale to Freddie Mac. The delivery of a mortgage secured by a unit in a condominium project with a Not Eligible status will be stopped starting April 29, 2024.

Sellers are required to contact Freddie Mac at [email protected] if they become aware of any information that could impact or is inconsistent with a project’s PAR findings (including the Not Eligible status). See Guide Section 5701.10(d)(vi).