New Requirements for Apartment Projects: What it Means for Your Mobility Programme

SIRVA
Relocation Services
Global Services
New Requirements for Apartment Projects: What it Means for Your Mobility Programme

Whether your employees are heading across the country or crossing continents, Sirva has the on-the-ground international relocation services you need. From Canada to Australia and everywhere in between, we understand the nuances across each region .

We provide offerings to satisfy your unique needs, whether selling a home in the U.S., managing a cross-country household goods move, or helping employees to get settled into their new homes in Europe. Our global experience means that you can count on seamless international relocation, no matter what’s next.

Departure Services

From the initial policy consulting call through the move itself, there are a lot of moving pieces associated with employee relocation. Whether planning a domestic or international relocation, SIRVA is expertly positioned to offer the best departure services available during a relocation in every region around the world.

Destination Services

Setting your employees up for success upon arrival at their new locations will be key to successfully meeting your company’s goals. SIRVA’s global network and expansive resources allow us to you achieve your goals. Our destination services and international movers help employees and their families settle in and prosper in their new homes.

Visa and Immigration

SIRVA’s team of experienced international relocation specialists are expertly equipped to manage inbound and outbound global immigration services. With SIRVA’s Immigration team, the focus is on providing a smooth customer experience that enhances the relocation process, not just achieving a successful application.

Employee Counselling

For your employees, a single relocation professional assists with end-to-end coordination of services: a relocation consultant for domestic/intra-country moves or global assignment consultant for international relocation. These consultants are your employees’ resource for all communication and services relating to their move, and coordinate the delivery of all authorised services. Regardless of the service being delivered (temporary housing, moving services, etc.), the employee can rely on the consultant as their go-to resource to address any concerns.

VIP Services

If you are searching for an enhanced service for your employees, SIRVA offers VIP services such as personal relocation assistants, in-home cleaning services, personalised family assistance, and many other tailored and luxury enhancements.

Related Services

Interested in learning more about our global services?

We would be happy to answer any questions you may have.

Email Us

The tragic collapse of Champlain South Tower in Surfside, Florida has brought increased awareness of the safety and structural integrity of apartment block projects. Lenders and others in the multi-dwelling industry are increasingly concerned as many apartment buildings were built more than twenty years ago and may have significant instances of deferred maintenance.

Fannie Mae has addressed the concerns in the industry by issuing new requirements that apply to apartment block projects with five or more attached units. These new requirements are effective 1 January 2022.

New Requirements and Impact on Your Mobility Programme

SIRVA-consultants-helping-with-condo-projects The new requirements are meant to assist lenders in determining if an apartment block project has significant deferred maintenance that affects the safety, soundness, structural integrity and habitability of the project. In addition to the existing policies regarding apartment eligibility, Fannie Mae has suggested the following best practices for lenders:

Review homeowners association minutes: Lenders should review the past six months of homeowners association (HOA) meeting minutes for any references to deferred maintenance.
Review inspections and reports: Lenders should review any inspections, engineering or other certification reports from the past five years for any signs of deferred maintenance.
Appraisers must document special assessments or deferred maintenance. Lenders need to have their appraisers document any special assessments or deferred maintenance that may affect the safety, soundness, structural integrity or habitability of the unit or the overall project.

Whether your relocating employee is buying or selling an apartment, they may face some new challenges because of these updated requirements. Let’s look at how these changes may affect your relocating employees.

Impact on relocating employees trying to purchase a home

Additional information required: Lenders will require the additional information mentioned above, which will need to be supplied by the HOA.
Expect pushback: These requirements are new, so lenders may get questions and/or pushback from HOAs asked to supply additional information.
Additional time and process changes: Many HOAs currently use third-party services that complete a standard lender questionnaire. These third-party services may not be able to provide these newly requested items, so additional time and process changes may be necessary to connect with the HOA.

Impact on relocating employees trying to sell a home

Home sale challenges: Relocating employees who own an apartment that does not meet these new eligibility requirements may struggle to sell their home.
Buyer financing challenges: A buyer of the relocating employee’s apartment may face the challenges mentioned above when trying to obtain financing.

Supporting Your Relocating Employees

At the time of writing, there has not been communication from Freddie Mac, FHA or VA. Employers should be aware that their relocating employees may face additional challenges when buying or selling an apartment. SIRVA has an experienced team that will help guide your relocating employees through the home buying and selling process in light of the new requirements.

To learn more about how the new requirements for apartment projects may affect you and your relocating employees, contact us at MortgageClientServices@sirva.com or reach out to your SIRVA representative.

Contributors:

Margaret DeLuca, Director, Real Estate Risk

Additional Resources:

SIRVA Mortgage, Inc. (NMLS Unique Identifier# 2240) is engaged in the business of originating residential mortgage loans. We are licensed or authorised to conduct mortgage loan origination in all 50 states plus the District of Columbia. SIRVA Mortgage is not a depository institution and does not act as or represent itself as a full service bank. Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans. Various state laws and regulations and our individual licence in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships please visit https://mortgage.sirva.com/about/about-sirva-mortgage. Call 800-531-3837 for more information. SIRVA Mortgage, Inc. is licensed by (amongst others): Arizona Licensed Mortgage Banker, Licence #BK-901430; Licensed by the Department Corporations under the California Residential Mortgage Lending Act, Lender Licence #413-0944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company, Licence # SL.0000368; Massachusetts Mortgage Lender, Licence #ML1341; Licensed by the Mississippi Department of Banking and Consumer Finance, Mississippi Licensed Mortgage Company #369/2009; Missouri Residential Mortgage Licensee; Montana Mortgage Lender Licence #39706, Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; New York Licensed Mortgage Banker by the N.Y. State Banking Department; Ohio Mortgage Broker Licence #MB.803887.000; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Texas Mortgage Lender, Licence # 44605; Licensed as a Mortgage Lender by the Virginia State Corporation Commission, licence #MC-310. This is not an offer of credit or an offer to enter an interest rate lock-in agreement nor is this notice of loan approval. Main Office of SIRVA Mortgage, Inc.; 6200 Oak Tree Blvd., Ste 300, Independence, OH 44131; Telephone: 1-800-531-3837.