Rules to promote condo safety could keep buyers out of the market

While it’s too soon to know its full impact, an obscure letter sent to lenders by Fannie May in October could have serious long-term consequences for people looking to buy or refinance condominiums, particularly those without the means to come up with bigger down payments or pay cash.

The letter, which spells out new requirements to qualify for a loan on condos, was issued in response to the collapse of the 12-story Champlain Tower South collapse in Surfside last year. But the rule, industry analysts in Florida say, puts an unfair burden on certain buyers and could have a chilling effect for building owners and associations who must provide the documentation required for these loans.