Fewer homes can get Fannie Mae-backed mortgages, a response to Surfside condo collapse and insurance crunch.
Condominium owners across the country are facing a paralyzing problem: They can’t sell their properties because of a fast-growing and mostly secret mortgage blacklist.
Real-estate agent Paul Gangi was days away from closing a sale of his listing in Shadow Ridge, a 440-unit townhouse and condo complex in Ventura County, Calif., in December. That is when his phone rang.
“I got a panicked call from the lender saying, ‘Sorry, we’ve just found out Shadow Ridge has been blacklisted,’” he said. The buyer tried several other options for getting a loan, without success, and the sale collapsed.
The blacklist is maintained by Fannie Mae and includes condo associations that the mortgage finance giant thinks don’t have adequate property insurance or need to make critical building repairs. Being on the list can make it harder for potential buyers to get a mortgage.
According to lenders and real-estate agents, Fannie Mae greatly expanded the list after the Surfside condo collapse in Florida in 2021 killed 98 people. '
WSJ
Climate change has major consequences now and into the future.
Insurance underpins real estate finance and without affordable insurance real estate becomes a risky bet for fiat debt.
Without fiat debt leverage real estate swiftly loses value.
Climate change has the real potential to trigger the collapse of fiat money.
I'd much prefer renting from a landlord year-to-year rather than signing away my life (MORTgage=death contract) to a bank and dealing with this kind of fiat nonsense. This one sounds messy. One more reason to just keep stacking.
This problem with insurance is growing rapidly and will catch many unawares.
If buying property seriously consider its insurance vulnerability.
By stacking sats we can self insure.