February 07, 2023

Freddie Mac Condo Project Advisor Request

Bulletin 2023-014 Freddie Mac Condo Project Advisor Request

Newrez LLC "Newrez" Approved Correspondent Clients; Freddie Mac recently announced Condo Project Advisor Project Assessment Request (PAR), an enhancement to Freddie Mac Condo Project Advisor. Condo Project Advisor PAR allows authorized Sellers to Freddie Mac submit the name of a condo project and obtain feedback (PAR findings) regarding the project’s compliance with the project review requirements assessed by Condo Project Advisor.

 

Condo Project Advisor Project Assessment Request (PAR)

 

  • What is PAR? – PAR is an enhancement to Freddie Mac’s Condo Project Advisor tool to new Freddie tool for use by the Project Review (PRD) team to assess certain condominium project requirements on established projects.
  • Currently, Freddie Mac PAR contains information on approximately 160,000 established condominium projects
  • PAR results provide valuable information about the project early in the process to help more effectively review the condominium project.
  • PAR could provide an assessment of any or all of the following areas on a particular project:
    • Condotel
    • Multi-dwelling units
    • Commercial space/non-residential space
    • Tenancy-in-common apartment project
    • Timeshares with segmented ownership
    • Houseboat
    • Ownership of common elements – recreational leases
    • Single Entity investor concentration
    • Continuing Care Communities
    • Manufactured Homes
    • Mandatory memberships
  • PAR does not provide an assessment of:
    • Litigation
    • Critical repairs
    • Special Assessments
    • Budget Requirements
    • Undivided Ownership or Leasehold Interest
    • Investor concentration in project is less than 50% (for an investor transaction)
  • When a characteristic above is identified in PAR and approved by Freddie, the approval has a rep and warrant relief in that area, but still must be reviewed for warranty in all other areas not approved.
  • PAR may identify ineligible projects early in the process
  • For loans with a PAR decision, a Condo Warranty is still required to complete a project review.
  • The file must contain an HOA certification to comply with company policy for Project Review Forms located in Project Review Policy and Procedures. An HOA certification may be waived for streamline reviews with an appraisal and litigation statement.

 

Delegated Clients utilizing Condo Project Advisor with PAR feedback certificates must include the following in loan package submitted for purchase

 

  • Unexpired PAR feedback certificate from Condo Project Advisor
  • Condo Warranty and applicable documentation to support warranty type according to Freddie Mac guidelines.

 

Non-Delegated Clients the Newrez Project review Department will utilize the PAR enhancement for condominium project reviews.