Housing groups press FHFA for delay on condo lending rules

Community associations, lenders and brokers are asking the Federal Housing Finance Agency for a one-year delay and revisions to new condominium financing requirements. The coalition says the changes could raise costs and limit mortgage access unless FHFA, Fannie Mae and Freddie Mac provide clearer guidance and more flexible implementation.

Why it matters: - The coalition says the new condominium lending rules could make homeownership more expensive for buyers and raise costs for condo associations. - The groups argue the policy changes should improve building safety without cutting off financing for qualified borrowers and well-managed communities. - Condominiums are a key entry point for first-time buyers, moderate-income households, seniors and buyers in high-cost markets. - The Foundation for Community Association Research estimates about 78.1 million Americans live in 373,000 community associations, which represent 35.2% of U.S. housing.

What happened: - Community Associations Institute, Community Home Lenders of America and the National Association of Mortgage Brokers sent a joint letter to FHFA Director William J. Pulte on July 9, 2026. - The letter asks FHFA to delay implementation of new condominium financing requirements by one year. - The coalition also wants FHFA and the government-sponsored enterprises to work more closely with industry before the rules take effect.

The details: - The groups object to the elimination of streamlined limited reviews, which will push more condo deals into full project reviews. - The coalition says full reviews can increase paperwork, processing time and borrower costs. - New reserve funding rules would raise minimum reserve contributions from 10% to 15%, which could lead to higher association assessments and homeowner bills. - The letter flags uncertainty around critical repair definitions, reserve funding standards and project eligibility requirements. - The coalition also says limited access to condominium project eligibility information creates inefficiencies and adds costs for lenders and borrowers. - The coalition is asking FHFA, Fannie Mae and Freddie Mac to delay the new reserve study funding requirements for at least one year beyond the current Jan. 4 effective date. - The groups want temporary streamlined review options for lower-risk condominium transactions. - The letter calls for clearer definitions of critical repairs and project eligibility standards. - The coalition wants broader access to condominium project approval information. - The groups also want better coordination between the government-sponsored enterprises and the Federal Housing Administration to reduce duplicative reviews. - The letter asks for a formal public review process before future major policy changes.

Between the lines: - The coalition is not rejecting tighter condo safety standards. - The dispute is over pace, process and implementation details that could shape whether the rules strengthen housing safety without shrinking credit access. - The request for a one-year delay signals concern that lenders and associations need more time to adjust systems, disclosures and underwriting practices.

What's next: - FHFA, Fannie Mae and Freddie Mac will decide whether to keep the current timeline, revise the rules or grant a delay. - The coalition says extra time would allow more guidance, education and consistency before the policy is fully enforced. - CAI says it will keep working with federal policymakers and industry partners on solutions that preserve affordability while improving safety. - More information is available in CAI's condominium advocacy resources.

The bottom line: - The coalition wants FHFA to slow down new condo lending rules so the agency can tighten safety standards without reducing affordable homeownership or mortgage access.