Surfside Tower Collapse Makes Buying Condos More Complicated

Fannie Mae and Freddie Mac are asking questions about the safety and soundness of condos and co-op buildings after the Surfside, Fla., tower collapse. There is little agreement on how to answer them.

Following the June collapse that killed 98 people, the mortgage giants said they would stop buying loans connected to buildings with significant deferred maintenance or safety issues. They have provided lenders with new in-depth questionnaires—to be completed by condo management companies, associations or boards—about a building’s condition.