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Fannie & Freddie are changing, again! Here’s what you need to know about the new requirements!
✅ Is a Reserve Study right for you? 👉 https://www.reservestudy.com/

In Episode 179, Robert explains how new Fannie Mae and Freddie Mac lending requirements could make HOA reserves an even bigger issue for condominium associations. As reserve funding receives greater scrutiny, boards may find that their financial decisions affect more than future repairs, they can also influence mortgage eligibility and unit sales. Robert breaks down the recent changes to reserve funding exemptions, the upcoming minimum funding requirements, and the role reserve studies can play in lender decisions. Most importantly, he explains why simply meeting the minimum standard does not necessarily mean an association is financially prepared for the future.

Chapters:
00:00 What did Champlain Towers South reveal about lending risk?
01:00 Why did Fannie Mae and Freddie Mac change condo lending standards?
03:20 Who are Fannie Mae and Freddie Mac, and why do they matter?
05:10 How are reserve funding and building safety connected?
06:45 Which associations do the new standards apply to?
07:45 What is the current 10% reserve-funding minimum, and when can associations request an exemption?
09:30 What changed about baseline-funding exemptions in phase one?
11:45 What is the 15% reserve minimum starting in January 2027?
13:35 Is 15% enough to fund reserves sustainably?
15:15 How do budgets affect mortgage eligibility?
17:45 What should associations with off-calendar fiscal years do?
19:25 Ad Break - Our FiPhO
19:56 How is the 15% reserve-funding requirement calculated?
21:15 Does reserve funding pay for current deterioration?
22:35 How can boards explain reserve funding to homeowners?
24:10 What does underfunding mean for future special assessments?
25:55 What steps can boards take to fund and collect reserves?
28:40 How can honest reserve funding help prevent a crisis?

The views & opinions expressed in this program are those of the Hosts & Guests, intended to provide general education about the community association industry. The content is not intended to provide specific advice or recommendations for any individual or organization.

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