When comparing data from 2020, there was a noticeable shift towards utilizing homeowners’ associations’ (HOA) questionnaires and lender project approval lists as key information sources for condo underwriting.
As for risk factors, HOA financial instability and deferred maintenance remained high on the list of lenders’ top concerns. The survey also noted a rise in concern over inadequate insurance coverage, going up to 32% from 15% in 2020.
Overall, the survey found that participation in condo lending has increased, with 95% of lenders stating that they had issued mortgages for single-family condos within the last year.
Furthermore, 29% of lenders said they were anticipating a significant increase in their share of condo loans, compared to just 20% in 2020.
The survey also highlighted a higher inclination towards lending for new condo constructions, as respondents expressed more willingness to finance such projects in 2023 (54%) than they did in 2020 (45%).
Source: mpamag.com