Pennymac is aligning with multiple GSE changes to condominium project standards as announced in Fannie Mae LL-2026-03 and Freddie Mac Bulletin 2026-C. These updates introduce targeted policy changes to provide greater flexibility and operational simplicity and are effective immediately.
- Note: The following updates apply to Fannie Mae and Freddie Mac products only. Non-Agency products (AUS Jumbo and Non-QM) are not aligning at this time.
Expansion of Project Review Waiver Eligibility for 2-10 Unit Condominium Project Developments
Project review waiver eligibility has been expanded and now includes projects consisting of 2-10 units (previously allowed for 2–4-unit projects). Projects consisting of 5-10 units must not be part of a master association or larger development. When exercising this option all applicable GSE project review waiver requirements must be followed.
- Fannie Mae DU messages will be updated in a future release.
Review Requirements for New Condo Projects With Attached Units in Florida
The requirement for PERS approval or an “Approved by Fannie Mae” status in CPM for new and newly converted projects with attached units in Florida has been retired. Units can now be reviewed under the lender-delegated full review process for new condominium projects.
- Fannie Mae CPM has been updated and DU messages will be updated in a future release.
Retirement of Investor Concentration Limits for Established Projects
The investment property concentration limit of 50% for investment property transactions is now retired.
Note: Presale requirements for new and newly converted condo projects continue to apply. Refer to the applicable GSE selling guide for requirements.
- Fannie Mae CPM has been updated to reflect investor concentration limits. DU messages will be updated in a future release.
The GSEs have not yet updated their Selling Guides, please refer to Fannie Mae LL-2026-03 and Freddie Mac Bulletin 2026-C for additional information.
Pennymac announcements addressing other condominium project eligibility updates will be published at a later date.
Please contact your Sales Representative with any questions.