President Edward J. Mackoul was quoted in the February issue of Habitat Magazine in the article titled, “How To Enable Sales & Refi’s,” by Bill Morris.  In this article, Mr. Mackoul comments on the compromised position faced by boards of coops and condos because of stringent requirements demanded by Fannie Mae.

Especially since the global recession, Fannie Mae has become increasingly strict on enforcing insurance guidelines on buildings that many baords are struggling to meet.  Of special concern are the strict ratings standards that a building’s insurance carriers must meet from one of three ratings agencies.  As stated by Mr. Mackoul, “Some buildings have had to switch insurance carriers and they’ve been hit with major premium increases in order to get coverage with a new [Fannie Mae approved] carrier.  As we wait for Fannie Mae to consider changing their guidelines, Mr. Mackoul says, “we are getting calls from Managing Agents saying buyers can’t get loans and shareholders can’t refinance.”

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