Following our previous discussion regarding how reserve funding recommendations and contribution levels are evaluated under the recent Fannie Mae update, we wanted to highlight another significant aspect of these changes. The update also changes how properties themselves are reviewed during the lending process.
Limited Review Retired
One change with broader impact is the retirement of the Limited Review process. Previously, some condo transactions could move forward under a Limited Review, which involved a more streamlined review of the project with less detailed financial review.
Beginning August 3, 2026, all condo transactions will require a Full Review, or, where applicable, a Waiver of Project Review.
Full Review
A Full Review is a more comprehensive evaluation of the project, including financials, budgets, and supporting documentation.
Consequently, reserve studies and funding plans are now more likely to be reviewed during the lending process.
In many cases, this may not change outcomes, but it may change how often questions are asked and how closely documentation is reviewed. Over time, this type of review may become more visible in situations such as property sales, refinances, or other lending-related activity.
In our next email we will share where these changes may be most likely to show up in practice.
If you have a property or situation you are already thinking about, feel free to reach out. If helpful, you can also request a reserve study proposal here.
