Condo associations say they find the required documentation burdensome and are worried the discussion of reserve funds and building integrity puts them at risk of liability, said Nancy T. Polomis, a Minnesota attorney who represents condo boards. "It seems like Fannie Mae and Freddie Mac took a big chunk to deal with a small bite problem," Polomis said. Freddie and Fannie guarantee or buy mortgages from lenders, making the loan less of a risk to issue. "The condo associations are outright refusing to fill out the addendum," said Muellenbach. But the building's board would not complete the additional form, preventing the buyers' loan from closing and threatening to derail the sale.

Source: CNN April 02, 2022 22:13 UTC