1.Fannie Mae Integrates Condo Project Manager with DU

Starting June 23, 2025, Fannie Mae will integrate Condo Project Manager (CPM) directly with Desktop Underwriter (DU). This means lenders will now receive real-time approval status updates for condo projects through DU. A loan with an Approve/Eligible recommendation from DU and Approved status from CPM will retain its approved designation through the credit report expiration date.

If lenders update project details during the loan process, DU will automatically refresh the project’s eligibility status. This streamlined workflow is designed to reduce friction in the condo approval process and improve transparency throughout the loan cycle.

2.New MI Guidance for New York Co-ops

Fannie Mae also clarified how lenders should calculate loan-to-value (LTV) when determining mortgage insurance requirements for New York co-op properties. Effective immediately, if the appraised value of a co-op unit results in an LTV of 75% or less, mortgage insurance is not required—even if the purchase price alone would have triggered MI.

3.Freddie Mac Introduces Income Calculator Tool

Effective for submissions made on or after May 11, 2025, Freddie Mac’s Loan Product Advisor will now include a built-in income assessment tool to help determine borrower income. This applies to both W-2 income (via paystubs and W-2s) and self-employed income (via tax returns or transcripts).

The new tool will also offer eligibility for representation and warranty relief on income—reflected in the Freddie Mac Income Calculator Certificate and Feedback Certificate. This is a step forward in automating and validating income calculations at the point of underwriting.

4.Flood Risk Premium Rule Postponed

Freddie Mac’s controversial requirement to include the full flood insurance risk premium when calculating debt ratios has officially been postponed again—this time until further notice. Originally scheduled for June 2024 and then delayed to April 1, 2025, the rule has now been shelved in response to feedback from lenders and industry stakeholders.

This delay provides some breathing room for lenders who were concerned about the complexity of identifying and disclosing full versus discounted premiums. However, it’s still possible the rule could return, so keeping it on your compliance radar is advised.

Fannie Mae Selling Guide Announcement SEL-2025-02

Freddie Mac Bulletin 2025-4