The Condo Question

Written By: Bonnie Wilt-Hild

Since the implementation of the new condo rules I have had several of my loan officers come to me with condo cases which they state have been turned down by other lenders because of information found in the condo questionnaires that the lenders are requiring to be completed on each case. I have to say that it has caused quite a bit of confusion for me because I was not aware that we needed a condo questionnaire on every condo case. I was under the impression that the condo development need simply to be listed on HUD’s condo list with a demonstrated expiration date that did not precede loan application.

At any rate, one loan officer in particular came to me over and over with multiple cases stating that other lenders had rejected the cases because of the questionnaire and asked what he needed to send to HUD or demonstrate in the file to overcome this. I kept conveying, over and over, that we didn’t need the questionnaire if the condo was on HUD’s approved list after which I received multiple office visits with a new question which was “are you sure?” Ok I have to say after having this conversation at least six times I started to doubt myself thinking perhaps I missed something, say 3 mortgagee letters which completely changed how we were supposed to go about the new condo rules so instead of looking for any missed mortgagee letters (I am actually far too lazy for that) I emailed HUD, the Philadelphia Homeownership Center to be precise and they shared information with me regarding how to complete underwriting on a condominium which I thought was lovely of them.

As HUD was so generous with this information I thought I too would share what I have been told and clear these questions up once and for all so as to eliminate all of the confusion and yes to keep a particular loan officer out of my office. First, as we are all aware Condo guidelines changed per ML 2009-19 which eliminated our ability to perform spot approvals on condo’s that were not located in a HUD approved condominium development. These rules were further defined in ML 2009-46a & ML 2009-46b. These mortgagee letters provide further clarification as to the approval process for condo’s that are not listed on HUD’s approved list and what we need to do if they are. Now if you need to have a development approved I strongly recommend pulling the mortgagee letters because there is a few things you are going to need to provide in order to make that happen but if you have a condo that is in a development that is already approved by HUD then all you need to do is print evidence of the approval from FHA connection, make sure it has not expired and sign the Lender Certification to Condominium Requirements provided in ML 2009-46b. That’s it and this I verified with HUD.

So for all of you and I won’t mention any loan officers name, who are trying to make this more difficult than it has to be, you may stop because it’s really not that complicated. As for the rest of you who appreciate nice and easy, I hope I have made your day. As always, happy underwriting!

About The Author

Bonnie Wilt-Hild - As an NAMP® staff writer, Bonnie currently serves as a senior instructor for FHA Online University ( as well maintains a full-time mortgage underwriting position as the Senior FHA DE Underwriter for a major lending institution. With over 25+ years of senior-level FHA/VA Government underwriting experience, Bonnie is considered the "Queen of FHA Loans". If you're interested in becoming a writer for NAMP®, please email us at:

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