MBA Statement on Fannie Mae and Freddie Mac Changes to Improve Insurance Affordability and Condo Project Eligibility Standards

MBA’s President and CEO Bob Broeksmit, CMB, released the following statement in response to updated insurance requirements and condominium eligibility policies from Fannie Mae and Freddie Mac (the GSEs):

“MBA thanks the Trump administration and Federal Housing Finance Agency (FHFA) Director William Pulte and the leadership and staff at the GSEs for their continued focus on affordability issues and for taking steps to update insurance requirements and condominium eligibility policies.

“MBA has long advocated for targeted changes to address overly rigid requirements that have constrained market liquidity, limited access to condo homeownership, and put unnecessary pressure on housing affordability. These updates represent meaningful progress and reflect thoughtful consideration of the concerns raised consistently by our members.

“Importantly, the condo insurance requirements will reduce costs for existing homeowners and will make tens of thousands of additional units eligible for lower cost GSE financing. Expanding the number of properties that can access conventional financing is a direct benefit to prospective buyers and an important step in the ongoing effort to improve housing affordability.

“Additionally, the added flexibility around roof replacement cost loss settlements will lower insurance costs for many homeowners, and the single-family insurance changes will provide important operational relief for servicers.

“MBA will continue to work with the GSEs to improve their condominium project approval and insurance guidelines, expand condo financing opportunities, and strengthen market stability and access to sustainable homeownership.”