Owners learn they’re blacklisted only after loan denials
Fannie Mae, a government-sponsored enterprise that backs roughly 70% of residential loans nationwide along with Freddie Mac, does not disclose the list publicly. Condo owners and associations typically find out only when a mortgage lender rejects a buyer’s application, stalling a sale or refinance.
While alternative lending options exist, non-conforming loans are typically more expensive and harder to qualify for, and all-cash deals, which remain common in South Florida, don’t rely on Fannie or Freddie standards.
Although Freddie Mac uses similar eligibility criteria, it remains unclear if the agency maintains a comparable list or evaluates projects individually.
“We believe they do,” Marcus said, “but we don’t have access to Freddie Mac’s information.”
Getting removed from the Fannie Mae list is possible, but Marcus said it’s a labor-intensive process, and many associations don’t know where to begin. His firm now offers an online resource for condo board officers to check whether they’re listed and to begin the removal process.