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Conventional Updates - 7/3/18

In response to Fannie Mae’s Announcement SEL-2018-05 and Freddie Mac’s Bulletin 2018-10, we have updated our conventional product profiles accordingly.

Project Eligibility Updates

The Condos section of the profile has been updated to:

  • Increase allowable commercial space to 35%. Commercial retail parking space does not need to be considered in the commercial space calculation for DU scored loans only
  • Increase single entity ownership to 20% for DU scored loans
  • Add new comparable requirements for LPA scored loans for New or Recently Converted Condos, Subdivisions or PUDs
    • In the event the subject subdivision or project is so new that a closed sale or a contract sale is not available, comparable sales from outside the subject subdivision or project may be used
  • Waive the requirement for a project review for two- to four-unit condominiums scored through DU
  • Clarified criteria for identifying projects that operate as hotels or motels
  • Add FHLMC project review types

The Co-op section of the profile has been updated for DU scored loans only to:

  • Increase allowable commercial space to 35%. Commercial retail parking space does not need to be considered in the commercial space calculation

Increase single entity ownership to 20%

Appraisal Update


Effective for new submissions and resubmissions to Loan Product Advisor® on and after July 16, 2018, the Automated Collateral Evaluations (ACE) will be eligible for condominiums. Refer to the findings and the eligibility requirements. The Appraisal section of the profile has been updated.


Maximum Exposure Update

The Multiple Mortgages to the Same Borrower section of the profile has been updated to allow maximum exposure of $3M (from $1.5M) per individual loan or in aggregate.