Navigating Challenges: Fannie Mae’s Condo Blacklist

As a financial planner, I must highlight a critical issue impacting potential condo buyers. A growing blacklist maintained by Fannie Mae is making it increasingly difficult for condominium owners to sell their properties. This list includes condo associations that lack adequate insurance or need critical repairs, significantly affecting buyers’ ability to secure mortgages.

Key Points:

• Blacklist Expansion: Following the Surfside tragedy in Florida, Fannie Mae has tightened standards, leading to a sharp increase in blacklisted properties—from a few hundred to over 5,175.

• Insurance and Repairs: Many condos are flagged for not meeting stringent insurance requirements or for needed repairs, complicating the purchase process.

• Impact on Sellers and Buyers: Owners face challenges in selling their condos, and buyers may need to seek alternative financing methods, such as cash purchases or non-conforming loans.

Friendly Neighborhood Planner Note:

If you’re considering purchasing a vacation condo, it’s crucial to check if it’s on the Fannie Mae blacklist. Doing so can save you from potential headaches down the road. Remember, I’m just around the corner to help you navigate these and other investment hurdles.

Source: Eaglesham, Jean, and Nicole Friedman. “A Secret Mortgage Blacklist Leaves Condos Unsellable.” The Wall Street Journal. February 25, 2025.