Buying a condo is tricky enough. But a federal database of problematic condo buildings — which some lenders are calling a “blacklist” — is making it even harder to get a mortgage for some.
The database was created by Fannie Mae, a government-sponsored corporation that buys mortgages from lenders and sells them to investors as securities. The system frees up lenders’ funds for additional loans and lessens their risk, generally resulting in lower rates for buyers.
But not for every buyer. More than 700 California condominium complexes are flagged in Fannie Mae’s database as being “unavailable,” meaning the company won’t purchase loans for units there, according to data provided by condo law firm Alcock Marcus. The number of affected condos has skyrocketed in the past few years…