Lenders that sell mortgage loans secured by units in a condo project are expected to have staff that are knowledgeable about and qualified to evaluate the specific risks presented by these properties.
As a reminder, in addition to selecting the appropriate warranty type, lenders must include all documentation that evidences the project meets condo eligibility requirements. See below for a table reflecting the basic documents that are expected to be in the loan file, based on warranty type:
|Limited or Streamline|| |
|Full or Established Review|| |
|PERS Approval|| |
|Reciprocal Project Review (Freddie Mac only)|| |
*Loan documentation includes but is not limited to: uniform underwriting and transmittal summary (1008), lender created warranty form, and other documents that can correctly identify the warranty type used by the lender.
Note: The lender remains responsible for ensuring the condo project warranty is documented as applicable. Selecting the appropriate warranty type on the loan documentation* indicates the lender has reviewed the condo project and the project meets all applicable requirements.
Please contact your Sales Representative with any questions.