3/28/2023 0 Comments Fannie mae mampProject budgets, financial statements, and reserve studies Įvidence of insurance policies and related documentation and Legal and recorded documents including the covenants, conditions and restrictions, declaration of condominium, or other similar documents that establish the legal structure of the project Project documentation may include, but is not limited to, the following: Lenders are responsible for determining the documentation needed to ensure that the project meets all of Fannie Mae’s eligibility requirements. The documentation needed to complete a project review may differ depending on the project and review type. If a lender determines that a project does not meet all of Fannie Mae’s project eligibility criteria, but feels that the project has merit and warrants additional consideration, the lender may request an exception (see B4-2.2-07, Projects with Special Considerations and Project Eligibility Waivers, for additional information). The project review is in addition to the review the lender completes for underwriting the borrower, the transaction terms, and the individual unit appraisal.įannie Mae’s project standards requirements are intended to address common project types across a broad geographic range. Lenders that sell mortgage loans secured by units in a condo, co-op, or PUD project to Fannie Mae are expected to have staff that are knowledgeable about and qualified to evaluate the specific risks presented by these types of projects. Fannie Mae’s project eligibility and underwriting requirements seek to mitigate project level risks and to ensure that projects are demonstrably well-managed. Project eligibility and financial strength are key drivers of credit performance on individual unit mortgages and critical to the long-term success of the project. Insurance coverage that is inadequate to protect the project from unexpected losses. The inability to cure a mortgage default due to restrictions in the project documents such as, but not limited to, right of first refusal provisions and Project-level misrepresentation and fraud Limitations on the unit owner’s ability to control the decision-making for the project, occupy the unit, or utilize the project’s amenities and common elements ĭissolution of the project and the unit owner’s resulting rights and responsibilities The condition and marketability of the project The financial stability and viability of the project Units located in a project present risks that are also distinct from the risks associated with properties that are not part of a homeowners’ association (HOA) or project. Project eligibility risk is a risk that is distinct from the credit risk presented by individual borrowers. Before delivering a loan secured by an individual unit in a project, the lender must determine that the project meets Fannie Mae's eligibility requirements. Please contact our Executive Director via or by phone at (207) 712-0402 if you have any questions concerning membership.The quality of mortgages secured by units in condo, co-op, and planned unit development (PUD) projects can be influenced by certain characteristics of the project or by the project as a whole. Be sure to review the MAMP Code of Ethics as you will be required to abide by it. We look forward to welcoming you as a Lender, Affiliate or Wholesale Rep member. They also keep us informed of any issues relative to the industry that might need our attention. They attend regular meetings in Augusta and lobby on our behalf if needed. The Legislative Committee follows any proposed legislation that could affect our industry in either a negative or positive manner. These seminars have been a tremendous benefit to all members taking advantage of them. They have provided educational forums on subjects such as tax changes, compliance and sales. A variety of subjects have been slated in the past with seminars being conducted by Fannie Mae, MAR, Freddie Mac, MSHA, Mortgage Insurers, the Office of Consumer Credit Regulation, and joint meetings with realtors, just to name a few. Breakfast seminars are held regularly throughout the year. Maine Association of Mortgage Professionals has a very active education committee. Membership offers all of this and more by way of our regular meetings, newsletter updates and educational programs. Membership entitles you to use the state logo and to be listed on the state website. It is also an excellent means to keep abreast of any new compliance issues, legislative issues, and the ever-changing state and federal requirements of our business. Membership in the Maine Association of Mortgage Professionals provides you and members of your organization a forum to network professionally and socially on a regular basis with others in the mortgage industry.
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