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Condo buyers face new mortgage rules under Fannie Mae, Freddie Mac

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Mortgage lenders may be just as interested in a condo as the prospective homebuyer.
Fannie Mae’s and Freddie Mac’s new condo lending policies, which take effect Aug. 3, will require lenders to pay greater attention to certain purchases. These government-sponsored companies purchase mortgages that meet the criteria on secondary markets. Although lenders review condo associations for many transactions, new policies will require them to take a more in-depth look at their finances, reserves and building maintenance.
According to Fannie Mae’s March 18th letter to lending institutions, the changes will help identify condominium buildings that have structural or financial problems. They also reduce the likelihood of owners being surprised by unexpected assessments or increased association dues.
Some trade groups and experts in the field of mortgages say that the changes will likely cause mortgage approvals to be delayed, or in some instances, mortgages may not even be approved if the condo does not meet the new standard.
Max Slyusarchuk is the CEO of AD Mortgage, a mortgage broker in Fort Lauderdale. He said that this would make [the application process] take longer, and result in many applications being disqualified. Mortgage wholesalers sent a July 16 letter to the Federal Housing Finance Agency (FHFA), which supervises Fannie and Freddie. They urged the agency to postpone or modify the changes.
Slyusarchuk warned that buyers should “expect it to be much more difficult” to purchase a condo.
FHFA has not responded to an email seeking a comment.
The stricter condo lending regulations
Fannie and Freddie purchase home loans from lending institutions and package them as mortgage-backed securities to be sold to investors. Fannie and Freddie are interested in buying mortgages from lenders. Most do this because they can use the capital for more lending.
A condo can be cheaper than a home. According to the National Association of Realtors, in June 2013, the median price of a condominium or co-op stood at $380,000, an increase of 1.6% compared with a year ago. The median price for a single family home is $446.400.
According to the Census Bureau, the American Housing Survey, as of 2023 there will be about 8,6 million condo units across the U.S.
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After the June 24th partial collapse of the 12 story Champlain Towers South Condo building in Surfside Florida that killed 98, legislators and policymakers tightened standards for condo financing and purchases.
On June 22, the National Institute of Standards and Technology (a government agency in the Commerce Department that investigates major building collapses) released a study concluding the building, which was 40 years old, had flaws dating back to its construction, and that decades of degradation contributed to its collapse. After the building collapsed, published reports revealed that the condo association delayed major repairs as they debated the scope and cost of the project.
This disaster led the Florida legislature to pass condo reforms. These included special inspections of older buildings as well as requirements for addressing structural issues and funding reserves to cover future repair costs.
Fannie Mae & Freddie Mac have tightened their condo underwriting nationwide in the weeks following the Surfside collapse. They no longer allow projects that had significant delayed maintenance, urgent repairs, or special assessments to be eligible for mortgages. The initial temporary changes were made permanent by 2023.
Limitations on reviews will be eliminated
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In March of this year, Fannie Mae and Freddie Mac announced additional changes. Some of the changes, like allowing condominium associations to be more flexible in their insurance policies, aim to reduce costs for associations and increase access to coverage.
Some are intended to lower the risk of homebuyers as well as lenders. One of these changes will be implemented on Aug. 3 and eliminate the limited or streamlined review available to certain condominium buildings.
The majority of transactions, however, will need to be reviewed in full unless the project is eligible for a waiver. This can apply to some small condominiums. This means that lenders must do a comprehensive evaluation of the condominium association’s financials, reserve funds, insurance coverage, and building condition, before the mortgage is eligible for Fannie Mae or Freddie Mac.
The mortgage approval process may take more time
Around 40% of condo purchases that involve a mortgage were made with a limited assessment. This could be changed to a complete review. The change is expected to prolong the approval of loans, according Dawn Bauman CEO of Community Associations Institute.
Bauman stated that “this will likely require more manual involvement from all the parties concerned, especially for mortgage lenders and community associations.”
Mortgage Bankers Association spokesperson said that the delay in the application of mortgages will be determined by the size and complexity of the project as well as the accessibility to required documents.
The MBA spokesperson stated that once a lender has completed a complete review “the project will be in [Fannie Mae and Freddie Mac]’s systems as being approved.” It is not required for all loans.
Once a condominium project is approved, the lender will not have to do it again for any subsequent loans.
There is concern that loan requests could be denied
Bauman explained that if a condo project does not meet Fannie Mae or Freddie Mac underwriting standards after a thorough review, the mortgage lender could deny it to the buyer.
Bauman explained, “I believe we will see buildings which qualified for limited review becoming ineligible after full review due to a small nuance that they may not be complying with.” But it doesn’t necessarily mean that the building has structural problems or is not safe. It also does not mean its financial status is at risk.
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A denial by one lender does not mean that the buyer cannot purchase an apartment. Some lenders are willing to hold the loan within their portfolios instead of selling it to Fannie and Freddie.
Slyusarchuk said that it may cost more. If a lender will make a loan they cannot sell, then they are likely to mitigate their risk, for example, by requiring more money as a down payment, or increasing the interest rate.
Bauman added that a delay in the transaction could also give cash buyers an advantage because they can finalize the deal much faster.
Budget for reserves is increasing
A new policy, which will take effect on Jan. 4, requires condo associations that seek Fannie Mae or Freddie Mac financing to reserve at least 15% (up from 10%) of their budget for major repair and replacement projects.
Fannie Mae wrote to lenders on March 18, “Condos with insufficient reserves are typically not equipped to meet unexpected expenses or maintain physical conditions of the building.” Unit owners may suffer financial difficulties due to unexpected assessments, or increased regular assessments and dues. This can lead to mortgage defaults or foreclosure.
Bauman’s Group, Community Home Lenders of America, and the National Association of Mortgage Brokers sent a joint letter on the 9th of July to the Federal Housing Finance Agency asking for the delay of the new requirements.
Condo associations are not Fannie Mae or Freddie Mac lenders. Bauman explained that they receive a lender’s questionnaire and fill it out. There will be some buildings who don’t even know that this change has occurred, and therefore they won’t be able to comply. “We’re encouraging the delay of this requirement by another year, to allow these managers and boards to fully understand what has changed.”

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Whole Foods recalls foods in 12 states over salmonella risk

Whole Foods announced on Wednesday it was recalling some produce and foods prepared with fresh jalapenos provided by Coast Citrus Distributors due to possible salmonella contamination.
Food and Drug Administration stated that the products with “Best Before” date ranges from August 7 to 16 were sold across 12 states.
According to FDA, no illnesses were reported as a result of the Whole Foods recall.
Whole Foods announced that the recall covers select salsas and prepared food, including guacamole. The FDA website has a complete list of the affected products.
As the JALAPENO SALMONELLA outbreak sickens 345, 18 PREPARED FOODS ARE UNDER ALERT.
These products are sold in Texas and Oklahoma as well as Louisiana, Wisconsin, Michigan Illinois, Iowa Missouri, Arkansas Indiana Kentucky, Ohio, Wisconsin.
Whole Foods’ spokesperson stated that the recall on Wednesday was due to jalapenos in the product, which were purchased from Coast Citrus Distributors. The products are also linked with the recall of the distributor. Taylor Fresh Foods announced a recall on Sunday that included some of the same products.
Whole Foods’ action coincides with a larger salmonella outbreak that is linked to jalapenos and has hospitalized 345 individuals in 27 states.
Before Whole Foods’ announcement, a USDA alert on public health in Sinaloa (Mexico) had identified at least 18 meat and poultry ready to eat products distributed by Coast Citrus Distributors.
Nearly 30,000 pounds of RAW beef were recalled due to a missed import inspection
Taylor Farms announced on Monday a voluntary recall of jalapenos-containing prepared foods sold in Walmart, Whole Foods and other retailers across several states due to possible salmonella contamination.
The FDA reminded consumers to return any recalled Whole Foods product they purchased or to bring their receipts to Whole Foods Market for a refund.
Federal regulators say that illnesses associated with the jalapeno epidemic began between 2026 and June 19.
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The outbreak has affected several large brands and retailers, such as Taylor Farms and Deli Kitchen. It also affects Marketside, Wawa and Albertsons.
According to officials, Chipotle Mexican Grill and QDOBA received the same jalapenos from Sinaloa.
Chipotle has switched their jalapeno suppliers at the affected restaurants beginning July 20, and will no longer serve this product. QDOBA, meanwhile, stopped serving jalapenos in all its locations as of July 28,
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Coast Citrus Distributors agreed to recall all remaining product implicated in the outbreak and will no longer import jalapenos produced by the linked grower.
Salmonellosis is caused by food contaminated with the salmonella bacteria. Symptoms include diarrhea, abdominal cramps, and fever.

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Business

Ford boosts US Lincoln production as it phases out imports from China

Ford Motor Company has plans to increase U.S. Lincoln production beginning in 2030, and stop eventually importing cars from China for its American luxury customers.
Dearborn-based Ford said that this expansion will generate direct and indirect jobs in the United States for thousands. Ford has not disclosed how much money it intends to invest, or which plants will receive additional production.
This would be a major shift in Lincoln’s U.S. line-up, which includes currently the Nautilus built in China.
The Nautilus re-designed is built at Changan Ford’s plant in Hangzhou (China) and exported to America. Ford Oakville Assembly Plant, Ontario, Canada produced the previous generation.
Regulators warn that some older Ford vehicles pose ‘unreasonable’ safety risks.
Ford has not stated whether the Nautilus will be produced in the U.S. as part of its 2030 plan, or which China imported vehicles may be affected.
Ford, and other automakers in general, continue to face higher costs as well as uncertainty due to rising tariffs and shifting global trade policies.
Ford’s most recent annual report shows that tariffs implemented in 2025 will cost the company approximately $3 billion gross, and have an impact of approximately $2 billion on its earnings, before taxes, interest, and offsets.
Ford has not said whether trade concerns or tariffs were a factor in the decision to stop importing Lincolns from China.
Ford to Use Apple Maps Software in Self-Driving Technology for New EV Platform
Lincoln produces several vehicles in the United States. The Navigator, for example, is built at Ford’s Kentucky Truck Plant, located in Louisville. Meanwhile, the Aviator, which is manufactured at the Chicago Assembly Plant, is also produced by Lincoln. The vehicles are exported to Canada, Mexico, and the Middle East.
Ford will expand its already large U.S. production footprint with the additional production. Ford said that it would assemble more than two million cars in the U.S. by 2025. This is more than any other carmaker. It also leads the auto industry for U.S. vehicle imports and autoworker hourly employment.
Ford reports that it employs 56,300 manufacturing employees in the U.S.
Ticker Changes Last Change % FORD MOTOR COMPANY 13.83 +0.15 -1.07
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Ford has not revealed many details about its expansion plan for 2030, such as which models it will produce domestically, the location of that production, and how much money Ford intends to invest.

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Business

Kroger closes at least 3 dozen stores across 9 grocery banners

Kroger closed more than 30 stores after announcing last year that it would close 60 outlets by 2026 if they did not deliver “sustainable results”.
Cincinnati’s grocery giant didn’t release an official list of all stores and banners that were to be closed, but searches on the internet revealed 39 sites across nine different banners no longer in operation. Local news reports confirmed that the majority of these locations are part of a larger store revamp.
According to a Securities and Exchange Commission (SEC) filing, as of January 2026 Kroger operated 2,697 grocery stores across 35 states, under approximately 20 different banners. These included Fred Meyer, Fry’s Food and Drugs, Harris Teeter and Jay C. Other brands include King Soopers and Mariano’s.
According to FOX26 Houston, the company stated that the closures were intended to “run our business more efficiently” and to ensure its long-term success. Two Houston area locations are scheduled to close by April.
In a $1.65 billion deal, KROGER will buy a popular grocery and pharmacy retailer.
Kroger, the national grocery retailer, announced last month that it would acquire Giant Eagle, a regional supermarket chain, for $1.65 Billion. This acquisition will add 197 additional stores and 11 independent pharmacies in northern Ohio, Western Pennsylvania, West Virginia and Indiana.
This acquisition will strengthen Kroger’s position in several Midwestern markets and Mid-Atlantic regions.
As part of Kroger’s consolidation efforts, at least three impacted stores were replaced or will be by Kroger Marketplaces. Kroger Marketplace is a larger format store that offers a wider selection of merchandise other than groceries, such as clothing, furniture, toys and homewares.
These locations are affected:
Kroger
Atlanta, Georgia — 2452 Morosgo Way NE
Brookhaven Georgia — 3855 Buford Highway NE
Decatur, Georgia – 3479 Memorial Dr.
Alpharetta, Georgia — 11877 Douglas Rd.
Peoria, Illinois — 3311 N Sterling Ave.
South Bend (Indiana) — 4526 West Western Ave.
Elkhart, Indiana — 901 Johnson St.
Louisville, Kentucky — 4211 S 3rd St.
Bossier City, Louisiana — 4100 Barksdale Blvd
Kingsport Tennessee — 1664 E Stone Dr.
Houston Texas – 239 West 20th St.
Houston, Texas — 9325 Katy Fwy.
Houston, Texas — 2300 Gessner Rd.
McKinney (Texas) — 2901 Lake Forest Drive
Spring, Texas — Farm to Market 6060 2920
Charlottesville, Virginia — 1904 Emmet St. N
Abingdon, Virginia — 466 Cummings St.
Gassaway West Virginia — 2908 State St.
South Charleston, West Virginia – 5 River Walk Mall (3060 Ray Park Boulevard) (consolidated in June last year into the new Kroger Marketplace).
Dunbar, West Virginia – 981 Dunbar Village
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Fred Meyer
Tacoma (Washington) — 7250 Pacific Ave.
Fry’s Food and Drug
Mesa, Arizona — 1915 S Power Rd.
Harris Teeter
Arlington, Virginia — 950 S George Mason Dr.
Arlington, Virginia – 3600 S Glebe Rd. W100
McLean, Virginia — 8200 Crestwood Heights Dr.
Rockville, Maryland – 11845 Old Georgetown Rd.
Raleigh, North Carolina — 5563 Western Blvd., Suite 6A
Charlotte, North Carolina — 5706 Wyalong Dr.
Ticker Security Changed Last % KR KROGER 56.06 +0.19 –0.34%
Jay C Food Stores
Shoals, Indiana – 201 High St.
King Soopers
Centennial, Colorado — 5050 E Arapahoe Rd.
Mariano’s
Buffalo Grove, Illinois — 450 W Half Day Rd.
Northbrook, Illinois — 2323 Capital Dr.
Bloomingdale Illinois — 144 S Gary Ave.
Choose & Save
Glendale Wisconsin – 1735 West Silver Spring Dr.
Milwaukee, Wisconsin — 3701 S 27th St.
Milwaukee, Wisconsin — 2355 N 35th St.
Oak Creek, Wisconsin — 2320 W Ryan Rd.
South Milwaukee, Wisconsin — 2931 S Chicago Ave.
QFC
Mill Creek — 926 164th St. SE
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FOX Business contacted Kroger to get more information.

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Business

Bill Gates’ Daughter Knew For Months That Her App Claimed Sales It Didn’t Drive, Report Claims

Bloomberg published an investigation last month that claimed Phia was a startup founded by Phoebe Gates, daughter of billionaire Microsoft founder Bill Gates, and Sophia Kianni who is her Stanford roommate. They were engaging in unethical online practices.
According to the report, the web extension of this startup, which claims it can find better deals and discounts for online shoppers via cookie stuffing (which is against digital platform policies), had falsely claimed sales that were not generated.
It makes money from the retailers who pay it a commission for each sale it facilitates. To verify this, it drops a cookie in the browser of every shopper when they make a purchase that involves its extension. Bloomberg, Ben Edelman and Capital One Shopping, a rival company, claim to have conducted independent testing that found Phia’s app opens an unnoticed background tab in order to insert its affiliate code. This overrides other referrals so as to receive the commission. PayPal’s Honey was also accused of similar accusations in 2024. This led to a lawsuit filed by a group.
Phia’s representatives described the bug as such on July 8, telling Bloomberg the problem was only discovered “within 24 hours”. But a Bloomberg investigation has found that Phia executives and in particular Phoebe Gates were aware of this situation for at least 7 months prior to the publication of that report. They also actively encouraged the addition of these features.
Bloomberg reports that this issue is not a bug, but a controllable internal feature called “enable coupons auto drop”. Bloomberg cites anonymous Slack sources and internal Slack conversations to claim that Gates was in a Slack discussion with staffers back in December, and wanted to confirm that Phia dropped cookies across all websites even if a shopper didn’t use their coupon.
Reports also claim that Phia used other controversial practices. One feature included dropping cookies automatically every 2 hours for users who had interacted with Phia’s extension when visiting a “top 1000 websites.”
According to the internal communications presented by Bloomberg, an engineer tried telling co-founder Kianni that the practice could be “against compliance,” but Kianni allegedly responded with a Slack message saying: “I guess we could say that the user is trying to open us and roll it back if they complain.” Bloomberg reported that an engineer had tried to warn co-founder Kianni about the potential for the practice to be “against the law.” Kianni responded by sending a Slack chat message saying, “I suppose we could say the user was trying to open us, and roll it all back if the complainant.”
Kianni then responded with, “That’s great yeah whatever you can do to make these cookies keep falling will be awesome thank you.”
According to the report, after “coupon automatic drop” was disabled, Phia’s revenues plummeted from $80,000 down to $10,000-$28,000. This is based on an internal revenue chart.
Phia has denied all allegations made by Bloomberg. They also claimed that their revenue drop last month is solely the result of the reversed cookie stuffing. The company also hired a compliance head “to ensure that something similar never occurs again.”

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Some Claude users are mad that Anthropic’s new watermarks will catch them using it at their jobs, classes

The company has decided to add a watermark (invisible code) into the text of the bot’s chatbot, which marks the output as AI generated.
This new policy was implemented by Anthropic to comply with the EU AI Act Transparency Code. The code requires that tech companies label AI-generated content or edits in a way computer systems can identify. While European regulators are happy with the new policy, AI users may not be.
Reddit is a great place to see the growing discontent. However, other users on the website aren’t in agreement. A user called visionode posted a post that was incredibly dramatic. His account has only been active for three weeks. Visionode claims that the watermarking scheme is an evil conspiracy to harm innocent chatbot users around the world.
Visionode appears to believe that while savvy Claude-users may be able to hide their AI usage through paraphrasing and other AI cleaning services, average Claude users will get caught.
Who will be caught? You. You. The journalist that asked the AI for a summary of a 200-page transcript. Writer who was stuck for words and requested synonyms. They come out with digital tattoos on their foreheads.”
It would be wrong of me to minimize visionode’s outrage. But those examples aren’t the most effective. If a journalist asks AI to sum up a 200-page transcript, they won’t care if there is a watermark on the summary unless that person copies and pastes it verbatim in their article. That is unethical.
The same is true for a student that copies and pastes Claude’s work into an essay, after having asked it to “reorganize a sentence.”
Redditors did not support the outrage of this poster.
One poster simply commented, “Get your hands on this guy.”
One person asked another to “take a deep breath”.
Visionode was not the only person to complain. One unhappy customer called the watermarks ‘unethical’ and a scumbag. They also claimed that Claude had already done most of the hard work. According to them, Claude was just a tool that aided their laborious work.
I gave the instructions and context. Claude did the rest. The poster asked: “If Claude watermarks the code, or any other thing it produces, for what is it claiming to be responsible?”
The critic was slammed by other users.
One user replied, “It isn’t claiming any credit.” It’s all about detecting AI-generated outputs due to the potential risks AI-generated outputs may cause.
Another joked, “Bro could not even write a complaint about Claude if Claude was not used to do it.”
Some critics avoided the narrative of victimhood and used slightly nuanced arguments to oppose Anthropic’s new policy.
One poster, for example, complained about the hypocrisy of watermarking a product editorial that had been created by stealing other people’s ideas. The user said, “I find it a sinister move.” I don’t write with Claude, but an AI watermarking your work seems a bit ironic considering how the Frontier models got their data.

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