Overview
- The two agencies implemented the new standards for loans dated on or after Monday, August 3, 2026, replacing the faster 'limited review' with mandatory full project assessments.
- Underwriters must now examine association budgets, reserve funding, current reserve studies, insurance coverage, delinquency rates, special assessments, litigation and structural maintenance before mortgages can be bought.
- Reserve expectations rise for many projects with a shift from a 10% benchmark toward a 15% minimum of the annual budget that generally takes effect in early 2027 unless a current study shows higher recommended funding.
- Industry groups warn the rules will lengthen closings, increase mortgage denials for underfunded or underinsured associations, and shrink the pool of conventional buyers, pushing some sales toward private lenders or cash purchases.
- The changes trace back to post‑Surfside safety reforms and could hit older buildings and high‑insurance markets hardest, forcing boards to update reserve studies, raise dues or levy special assessments to preserve financing eligibility.