Fannie Mae relaxes Florida condo regulations

Government-backed mortgage firm Fannie Mae is focusing in on Florida’s sluggish condo sales market, hoping that by relaxing its regulations for selected projects, condo buyers will once again be able to obtain mortgages. Previously, Fannie had made exceptions to its condo eligibility guidelines on a case-by-case basis, but now the lender has issued its pre-approval for a list of 51 projects in Miami-Dade County, which indicates to mortgage bankers that the company will accept loans made on those condominiums. Projects include the Grand Condominium at 1717 N. Bayshore Drive in Miami, Latitude on the River at 185 S.W. 7th Street, also in Miami, and Roney Palace at 2301 Collins Avenue in Miami Beach. It plans to expand the list of special exemptions in South Florida, reversing a course set in 2009 when Fannie’s new regulations strangled condo lending in the area. Peter Zalewski, principal at Bal Harbour’s Condo Vultures, said the list of condos with relaxed regulations is unlikely to spur lending amongst banks. “Most regionals and locals are not even going to look at it,” he said. [Miami Herald]