ATTN Resort/Condo Practitioners: Request for Assistance

ATTN Resort/Condo Practitioners: Request for Assistance


NAR is asking for feedback on the impact of, and specific experiences from, the recent change to Fannie Mae/Freddie Mac’s selling guide.


What Is the Issue?

Fannie Mae and Freddie Mac changed their selling guide in late 2020, pulling back from underwriting loans for units in what are commonly called condotels, or complexes, including condominiums. In short, Fannie Mae/Freddie Mac will no longer underwrite loans where the majority of the units in a complex are used as short-term rentals.

  • The primary concern is that the change may target so-called resort areas, where units are often used as short-term rentals, limiting ownership of primary residences
  • Here is an article on the updated Seller’s guide. (subscription may be required)
  • The language from Fannie Mae’s selling guide is attached here and here


What Can You Do To Help?

AAR would like to hear from Alabama REALTORS® about instances where the rules have been applied, specifically targeting two instances: 1) where lenders may have misinterpreted or over-interpreted the rules, and 2) where the change will unreasonably impact residential ownership in “resort” areas.


Who To Contact:

If you have experiences from the recent changes to Fannie/Freddie Mac’s selling guide, please email AAR’s staff Franklin Johnson