The article highlights the growing insurance crises in states like California, Texas, and Florida, intensified by the 2021 Surfside condo collapse. Rising premiums and escalating costs for insurance are leading many condo associations to seek cheaper policies that don't meet Fannie Mae's requirements, resulting in a significant number of properties failing to qualify for financing. Insurers and regulators warn that climate risks are impacting mortgage borrowers, increasing the frequency of dropped deals. The portrayal of Fannie Mae's project database as a blacklist was disputed, emphasizing its role as a protective measure for borrower safety.
Insurance premium crises across the country, especially post-2021 Surfside condo collapse, have led many condos to fail Fannie Mae's strict insurance requirements.
The rising costs mean that many condo associations opt for cheaper, limited insurance policies, which often fall short of Fannie and Freddie Mac's standards.
Ultimately, insurers and regulators acknowledge that climate risks, especially the recent premium surges, could jeopardize the financial stability of mortgage borrowers.
A spokesperson from Fannie Mae stated that its requirements are in place to protect borrowers and that its database is an online tool, not a blacklist.
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