What Is the Condo Project Advisor System
When you want to buy a condo with a Fannie Mae loan, your lender must check whether your building meets Fannie Mae's project requirements. The Condo Project Advisor (CPA) is Fannie Mae's automated system that evaluates condo projects and tells lenders what additional review work they need to do.
Think of it as a pre-screening tool. Your lender enters your condo project's information into CPA, and the system spits out a status rating along with specific feedback about what requirements the project meets or fails to meet.
The system doesn't approve or reject your individual loan. Instead, it tells your lender how much work they need to do to verify that your condo project complies with Fannie Mae's rules.
The Six Status Ratings Explained
CPA assigns one of six possible status ratings to every condo project it evaluates.
Project Certified means CPA found the project meets all the basic requirements for an established condo project. This is the best possible rating. Your lender doesn't need to do any additional project review work beyond what CPA already checked.
Seller Certified means the project initially received a Green, Yellow, or Incomplete Assessment rating, but your lender completed additional review work and certified that the project meets all requirements. This status expires after one year.
Green means CPA found the project meets all the requirements it checked, but your lender still needs to verify some items that CPA doesn't evaluate. Your loan can proceed, but your lender has homework to do.
Yellow means CPA found problems with one or more requirements it checked. Your lender must fix these issues and verify additional requirements that CPA doesn't check. The feedback will include a "Proceed with Caution" section listing specific problems.
Incomplete Assessment means CPA couldn't complete its evaluation, usually because it lacks sufficient project information. Your lender must verify all project requirements from scratch.
Not Eligible means CPA found serious problems that make the project ineligible for Fannie Mae financing. No loans in this project can be sold to Fannie Mae, period.
How the Assessment Process Works
Your lender submits a Project Assessment Request (PAR) through the CPA system at any point during your loan process, but it must happen before they sell your loan to Fannie Mae. They enter either your Loan Prospector key number or their internal loan number to tie the assessment to your specific loan.
CPA evaluates the project against dozens of requirements covering everything from the project's legal structure to its financial health to its physical condition. The system checks public records, HOA documents, and other available data sources.
Within a short time, CPA generates a feedback certificate showing the project's status rating and listing any specific issues found. This certificate is tied to your individual loan and cannot be transferred to other loans in the same project.
If your project receives a Green or Yellow rating, your lender can choose to complete additional review work and submit a Seller Review Certification (SRC) to upgrade the project to Seller Certified status.
Required Documentation and Timing
Your lender must keep the CPA feedback certificate in your loan file. The certificate must be dated within 120 days of your loan closing date, unless the project has an unexpired Seller Certified status.
If your lender submits an SRC to achieve Seller Certified status, they must maintain documentation supporting their analysis that the project meets all requirements. This might include HOA budgets, reserve studies, legal documents, and their own review questionnaires.
For Project Certified Submission (PCS) reviews, lenders must provide specific documents including a full review questionnaire dated within 180 days, Form 476A for critical repairs assessment, any structural or mechanical inspections completed within three years, and the current approved budget.
Your loan must be delivered to Fannie Mae within 120 days of closing. If this deadline is missed, your lender must submit a new PAR and get a fresh feedback certificate.
Why These Rules Exist
Fannie Mae created the CPA system to streamline condo project reviews while maintaining quality standards. Before CPA, lenders had to manually review every condo project against dozens of complex requirements, which was time-consuming and inconsistent.
The automated system allows CPA to quickly identify obvious problems or clearly compliant projects, letting lenders focus their manual review efforts where they're most needed. This speeds up the loan process for borrowers while maintaining Fannie Mae's risk standards.
The status ratings create a clear hierarchy of review requirements. Project Certified projects need minimal additional work, while Yellow and Incomplete Assessment projects require extensive lender verification. This risk-based approach allocates review resources efficiently.
The 120-day timing requirements ensure that project information stays current. Condo projects can change quickly due to financial problems, legal issues, or physical deterioration, so Fannie Mae wants relatively fresh assessments.
Common Problems and Complications
Projects can lose their favorable status ratings if conditions change. If your lender learns about new information that could affect the project's compliance - like pending litigation, special assessments, or financial problems - they must notify Fannie Mae within five business days and reconfirm the project's current status.
Seller Certified status expires after one year, which can create timing problems for loans that take a long time to close or get delivered to Fannie Mae. If the status expires before closing and your lender wants to rely on it, they must submit a new SRC.
The PAR is tied to your specific loan and cannot be used for other loans in the same project. Each loan needs its own assessment, even if they're in the same building and closing around the same time.
Some projects that receive favorable CPA ratings may still fail to meet requirements that CPA doesn't check. For example, CPA might not evaluate owner-occupancy ratios for investment properties, leaving that verification to your lender.
Projects with Yellow status can have widely varying problems. Some issues might be minor and easily resolved, while others could be deal-killers. The "Proceed with Caution" messages provide specifics, but interpreting their significance requires expertise.
Impact on Your Loan Process
If your condo project receives Project Certified or Green status, your loan should proceed smoothly with minimal delays. Your lender has clear guidance about what additional work, if any, they need to complete.
Yellow status projects require more time and effort from your lender. They must address the specific issues identified in the feedback and complete additional verification work. This can add days or weeks to your loan timeline.
Incomplete Assessment projects face the longest delays because your lender must verify all project requirements manually. This essentially means conducting a full traditional condo project review, which can take several weeks.
Not Eligible projects kill your loan application immediately. You cannot get Fannie Mae financing for a unit in a Not Eligible project, and you'll need to look for other loan programs or different properties.
The CPA system integrates with Loan Product Advisor, so project status information appears automatically when your lender runs your loan through automated underwriting. This helps identify potential project issues early in the loan process.
References
For the official guidelines, see 5701.10: Condo Project Advisor® – Project Assessment Request (PAR) in the Fannie Mae Selling Guide.
Mortgage guidelines change. Stay current.
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Original Freddie Mac Guideline Text
®
(CPA
℠
) allows authorized Sellers to submit a Project Assessment Request (PAR) to obtain feedback (referred to as the PAR findings) regarding a Condominium Project’s compliance with the project review requirements assessed by CPA. A Condominium Project’s PAR findings are also available in Loan Product Advisor
®
when CPA identifies the property address submitted in Loan Product Advisor and the project has a PAR status assigned.
This section contains requirements related to:
Mortgages eligible for purchase
Submission timing and Seller Certified status expiration
PAR findings
Assessed and non-assessed project review requirements
Project Certified Submission (PCS) review process
Seller Review Certification (SRC) process
Documentation requirements for Mortgages with PAR findings
(a)
Mortgages eligible for purchase
To be eligible for purchase the Mortgage must:
Be secured by a Condominium Unit in an Established Condominium Project
Be a Loan Product Advisor Mortgage
Not be secured by a Condominium Unit in a Condominium Project with a Not Eligible status PAR finding
(b)
Submission timing and Seller Certified status expiration
(i)
Submission timing
For CPA, the PAR and, if applicable, the required data for a Seller Review Certification (SRC), may be submitted at any time during the loan origination process but must be submitted prior to sale of the related Mortgage to Freddie Mac.
For Loan Product Advisor, the Mortgage must be submitted to Loan Product Advisor pursuant to the requirements in
Section 5101.1(c)
.
(ii)
Seller Certified status expiration
The Seller Certified status PAR finding expires one year from the SRC submission date. The expiration date is specified on the Condo Project Advisor Feedback Certificate or the Last Feedback Certificate, whichever contains the last PAR findings as defined in
Section 5701.10(d)(iii)
. If the Seller Certified status PAR finding expires before the Note Date and Seller wants to rely on the Seller Certified status, Sellers must submit a new SRC in CPA prior to sale of the related Mortgage to Freddie Mac.
(c)
Mortgage identification
The PAR is applicable only to the Mortgage identified on the Condo Project Advisor Feedback Certificate or the Last Feedback Certificate, as applicable, and is not applicable to any other Mortgage secured by a Condominium Unit located in the same Condominium Project.
The Mortgage identified will be the Mortgage for which the Seller enters one of the following in CPA:
The LP Key Number, an alphanumeric identifier, listed on the Feedback Certificate, which may also be referred to as the LP AUS Key Number or the Loan Prospector Key Number, or
(i)
Retail Mortgages
For Retail Mortgages, the LP Key Number or the Seller loan number must be entered into CPA, and it must be identical to the LP Key Number or Seller loan number delivered in Loan Selling Advisor
®
.
(ii)
Non-Retail Mortgages
For non-Retail Mortgages, the LP Key Number must be entered into CPA, and it must be identical to the LP Key Number delivered in Loan Selling Advisor.
(d)
PAR findings
Seller is responsible for ensuring compliance with the project review requirements specified in the last PAR findings (see
Section 5701.10(d)(iii)
below). See
Section 5701.10(i)
for details about representations and warranties.
Freddie Mac will not purchase a Mortgage secured by a Condominium Unit in a Condominium Project assigned a “Not Eligible” status by CPA. See table below.
Section 5701.10(d)(ii)
below for changes to PAR findings.
(i)
PAR finding status
The following table describes the PAR findings by status:
Project Certified status
If CPA finds that the Condominium Project complies with all requirements assessed for this status, CPA will assign a “Project Certified” status to the project.
The term “Project Certified” means that CPA is assessing only the requirements of the
Glossary
definition of an Established Condominium Project,
Section 5701.3
regarding ineligible Condominium Projects and
Section 5701.5
regarding Established Condominium Projects.
Section 5701.10(f)
for details on submitting a Condominium Project for a PCS review.
Seller Certified status
A “Seller Certified” status will be assigned to the Condominium Project if the project complies with all project review requirements:
); and
Assessed by Seller (see Incomplete Assessment status requirements below in this table and Sections
5701.10(e)(ii)(B)(II)
and
5701.10(e)(iii)
)
If CPA finds that the Condominium Project does not comply with one or more of the requirements CPA assessed, then Sellers must address and ensure compliance with those requirements in order for the Condominium Project to receive a Seller Certified status.
Section 5701.10(g)
for details on the SRC process.
Green status
If CPA finds that the Condominium Project complies with all the requirements assessed for this status, CPA will assign a “Green” status to the project.
Yellow status
If CPA finds that the Condominium Project does not comply with one or more of the requirements assessed, CPA will assign a “Yellow” status to the project.
The Condo Project Advisor Feedback Certificate will include a “Proceed with Caution” section with messages relating to requirements that need to be addressed before the Mortgage can be sold to Freddie Mac. The Loan Product Advisor Feedback Certificate will provide similar feedback messages, titled “Condo Project,” in the Property and Appraisal Messages section.
If one of the messages indicates that the project may not be an Established Condominium Project, the Seller must first determine that the project complies with that requirement
If Seller determines that the project is an Established Condominium Project, the related Condominium Unit Mortgage may be eligible for sale to Freddie Mac if the Seller fully analyzes the project review and general eligibility requirements identified on the later of the Condo Project Advisor Feedback Certificate or the Last Feedback Certificate (see
Section 5701.10(d)(iii)
below) and determines that the project complies with the requirement(s)
Incomplete Assessment status
If CPA is unable to perform the assessment, CPA will assign an “Incomplete Assessment” status to the Condominium Project.
A Mortgage secured by a Condominium Unit in a Condominium Project with an “Incomplete Assessment” status may be eligible for sale to Freddie Mac if the Seller fully analyzes all project review requirements (
Section 5701.2(a)
) and general eligibility requirements (
Section 5701.2(b)
) and determines the project complies with all the requirements.
Not Eligible status
If CPA finds that a Condominium Project does not meet certain Condominium Project review and general eligibility requirements, CPA will assign a “Not Eligible” status to the project.
Mortgages secured by a Condominium Unit in a Condominium Project that receive this status are ineligible for sale to Freddie Mac and will be identified as such in Output (as defined in
Section 2401.1(b)
) of CPA, Loan Product Advisor, Loan Quality Advisor and Loan Selling Advisor.
A Condominium Project without a “Not Eligible” status does not mean that the project complies with all of Freddie Mac’s project review and general eligibility requirements or that Freddie Mac will purchase any Mortgage secured by a Condominium Unit in that project. For a Condominium Project without a “Not Eligible” status, Seller must ensure compliance with all applicable requirements in this chapter and all other requirements of the Purchase Documents.
(ii)
Changes to PAR findings
For all PAR findings, including those submitted through the PCS review process or SRC process, if a Seller or, if applicable, a Related Third Party, becomes aware of any information that could impact, or that is inconsistent with, a project’s PAR findings, the Seller or Related Third Party must contact Freddie Mac at
and provide the specific information. Seller must notify Freddie Mac as soon as feasible but no later than five business days after Seller becomes aware of such information.
A Condominium Project’s PAR findings (status and/or feedback messages) may change based on information assessed after CPA assigns a status to the project and after Seller last accessed CPA and obtained a project’s PAR findings.
If the Seller or Related Third Party notified Freddie Mac of any information that could impact, or that is inconsistent with, a project’s PAR findings, then, prior to sale of a Condominium Unit Mortgage secured by a unit in that Condominium Project, the Seller must:
Confirm the Condominium Project’s current PAR findings; and
Ensure compliance with the requirement(s) specified in the last PAR findings (see
Section 5701.10(d)(iii)
below)
(iii)
Last PAR findings
The PAR findings on the Condo Project Advisor Feedback Certificate are the last PAR findings if the date listed in the “Date Issued” field on the Condo Project Advisor Feedback Certificate is later than the date listed in the “Date/Time Assessed” field in the Transaction Details section of the Last Feedback Certificate.
Otherwise, the PAR findings on the Last Feedback Certificate are the last PAR findings.
If submissions in CPA and Loan Product Advisor are made on the same day, then the PAR findings on the Last Feedback Certificate are the last PAR findings.
(e)
Assessed and non-assessed project review requirements
(i)
Assessed project review requirements for Condominium Projects with a Project Certified status PAR finding
CPA only assesses the following project review requirements for Condominium Projects with a Project Certified status:
Guide location
Definition of an Established Condominium Project
Section 5701.5
When specified on the Condo Project Advisor Feedback Certificate or the Feedback Certificate, CPA has not assessed the owner-occupancy requirements in
Section 5701.5(b)
for Investment Property, and Seller remains responsible for assessing such requirement for Investment Property Mortgages.
(ii)
Assessed project review requirements for Green and Yellow status PAR findings
(A)
Assessed project review requirements
CPA assesses the following project review requirements for streamlined review (
Section 5701.4
) and Established Condominium Projects (
Section 5701.5
) that receive a Green or Yellow status:
Guide location
Definition of an Established Condominium Project
Glossary
Condominium Hotel or similar type of transient housing
Section 5701.3(c)
Project with excessive commercial or non-residential space
Section 5701.3(e)
Timeshare project or project with segmented ownership
Section 5701.3(g)
Project in which the unit owners do not possess sole ownership of the Common Elements
Section 5701.3(h)
Project with excessive single investor concentration
Section 5701.3(j)
Continuing Care Retirement Community (CCRC)
Section 5701.3(l)
Project with mandatory dues or similar membership fees for use of Amenities such as clubhouses or recreational facilities
(B)
Non-assessed project review and general eligibility requirements for Green and Yellow status PAR findings.
CPA does not assess the following project review and general eligibility requirements for streamlined review and Established Condominium Projects that receive a Green or Yellow status:
)
Guide location
Expiration of project review is within one year prior to the Note Date
Section 5701.2(a)(3)
The Condominium Project remains in full compliance with applicable State law, the requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations governing the Condominium Project
Section 5701.2(a)(4)
Projects in which the unit owners do not have an undivided ownership interest or leasehold interest in the land on which the project is located
Section 5701.3(o)
Projects terminating or involved in insolvency proceedings
Section 5701.3(p)
Maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios
)
Guide location
Expiration of project review is within one year prior to the Note Date
Section 5701.2(a)(3)
The Condominium Project remains in full compliance with applicable State law, the requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations governing the Condominium Project
Section 5701.2(a)(4)
Projects in which the unit owners do not have an undivided ownership interest or leasehold interest in the land on which the project is located
Section 5701.3(o)
Projects terminating or involved in insolvency proceedings
Section 5701.3(p)
Owner-occupancy requirements for Established Condominium Projects
Section 5701.5(b)
Project budget requirements for Established Condominium Projects
Section 5701.5(c)
Delinquent assessments for Established Condominium Projects
Section 5701.5(d)
Requirements when a Seller relies on a project reserve study for Established Condominium Projects
(iii)
Non-assessed general eligibility requirements for all PAR status findings
CPA does not assess the general Condominium Project eligibility requirements in
Section 5701.2(b)
.
(f)
Project Certified Submission (PCS) review process
CPA may specify on certain PARs, or the Loan Product Advisor Feedback Certificate may indicate, that a Condominium Project is eligible to be submitted for a Project Certified review through the CPA PCS process. Such submissions may be made only through CPA. Prior to submission, the Seller is not required to determine that a Condominium Project meets the requirements of
,
5701.5 (Established Condominium Projects)
, and the
Glossary
definition of an Established Condominium Project.
If CPA finds that the Condominium Project meets the requirements for Project Certified, the project will be assigned a Project Certified status. The provisions of Section 5701.10 applicable to projects with a Project Certified status are also applicable to projects with a Project Certified status obtained through a PCS review.
(i)
PCS timing
The project must be submitted and receive a Project Certified status PAR finding prior to the sale of the related Mortgage to Freddie Mac.
(ii)
PCS requirements
The Seller must submit the following documents to Freddie Mac for review:
Seller full review questionnaire dated within 180 days of PCS request date;
Condominium Project Addendum Form 476A or similar documentation to determine if a project is in need of Critical Repairs;
Any structural and/or mechanical inspection that has been completed within 3 years of the Seller’s PCS request date;
Current approved budget; and
Such other documentation/information as Freddie Mac may request from time to time
Except for the information required by the PCS review, Sellers must not provide any Borrower-related information or other Mortgage information in connection with their PCS request.
(g)
Seller Review Certification (SRC) process
CPA may specify on certain PARs, or the Loan Product Advisor Feedback Certificate may indicate, that a Condominium Project is eligible to be submitted for a Seller Certified review through the CPA SRC process. Such submissions may be made only through CPA.
If Seller chooses to submit an SRC in CPA, Seller will be prompted to respond to a series of questions based on the Condominium Project’s PAR finding of Green, Yellow or Incomplete Assessment status (the “Pre-SRC PAR status”).
If a project receives a Seller Certified status PAR finding:
The status will be visible only to CPA and Loan Product Advisor users who have the same Seller ID as the SRC submitter; and
The status will be detailed on all Condo Project Advisor Feedback Certificates and Loan Product Advisor Feedback Certificates for Mortgages secured by Condominium Units in the same Condominium Project until the Seller Certified status expires
A Seller Certified status PAR finding may change prior to its expiration date if:
The status changes to Not Eligible or Project Certified, or
There is an SRC resubmission by a user with the same Seller ID as the SRC submitter
(h)
Documentation requirements for Mortgages with PAR findings
For all PAR findings, the Condo Project Advisor Feedback Certificate or the Last Feedback Certificate, whichever contains the last PAR findings as defined in
, must be:
Maintained in the Mortgage file; and
Dated within 120 days of the Note Date or has an unexpired Seller Certified status (see
Section 5701.10(b)(ii)
above for Seller Certified status expiration)
The Seller may upload in CPA all documentation related to its SRC at the time of submission. The Seller must retain, and provide upon request, documentation to support its analysis that the Condominium Project complies with the project review requirements assessed by Seller as required in
Section 5701.2(b)(6)
.
(i)
(i)
Project Certified status PAR findings
For a subject Mortgage secured by a Condominium Unit in a Condominium Project with a Project Certified status PAR finding, Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to the project review requirements that CPA assessed if:
CPA found the project complied with the requirement(s) assessed; and
The PAR findings are detailed on the later of a non-transferrable Condo Project Advisor Feedback Certificate or the Last Feedback Certificate maintained in the Mortgage file
Seller remains responsible for:
Compliance with the general eligibility requirements in
; and
Compliance with the owner occupancy requirements indicated in
Sections 5701.5(b)
when specified on the later of the Condo Project Advisor Feedback Certificate or the Last Feedback Certificate
Except as provided by this Section 5701.10(i)(i), the Seller remains responsible for compliance with all other requirements of the Purchase Documents.
(ii)
Seller Certified status PAR findings
For a subject Mortgage secured by a Condominium Unit in a Condominium Project with a Seller Certified status PAR finding, Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of Seller’s selling representations and warranties related to the project review requirements that CPA assessed if:
CPA found the project complied with the requirement(s) assessed; and
The PAR findings are detailed on the later of a non-transferrable Condo Project Advisor Feedback Certificate or the Last Feedback Certificate maintained in the Mortgage file
As to the requirements assessed by Seller for an SRC, Freddie Mac may exercise its remedies, including the issuance of repurchase requests, in connection with a breach of Seller’s selling representations and warranties related to such project review requirements.
Seller must determine that a Condominium Project with a Pre-SRC PAR status of Green, Yellow or Incomplete Assessment complies with the requirements specified in the following table:
;
All project review requirements not assessed by CPA (see
); and
All other requirements of the Purchase Documents
;
All project review requirements not assessed by CPA (see
)
Any project review requirements assessed by CPA and not complied with by the Condominium Project; and
All other requirements of the Purchase Documents
);
); and
All other requirements of the Purchase Documents
(iii)
Green or Yellow status PAR findings
For a subject Mortgage secured by a Condominium Unit in a Condominium Project with a Green or Yellow status PAR finding, Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to the project review requirements that CPA assessed if:
CPA found the project complied with the requirement(s); and
The PAR findings are detailed on the later of a non-transferrable Condo Project Advisor Feedback Certificate or the Last Feedback Certificate maintained in the Mortgage file
The following table outlines the requirements for a Condominium Project with a Green or Yellow status PAR finding:
Green status
Seller does not need to ensure compliance with all the project review requirements assessed by CPA.
Seller must ensure compliance with:
) that CPA does not assess
) that CPA does not assess; and
All other requirements of the Purchase Documents
Yellow status
When CPA finds that the Condominium Project does not comply with one or more of the requirements it assesses, Seller must ensure compliance with such identified requirement(s).
Seller must also ensure compliance with:
) that CPA does not assess
) that CPA does not assess; and
All other requirements of the Purchase Documents
(iv)
Incomplete Assessment status PAR finding
For an Incomplete Assessment status PAR finding, Seller must ensure compliance with:
); and
)
(j)
Delivery requirements
All eligible Mortgages with PAR findings must be delivered to Freddie Mac within 120 days after the Note Date. If the Mortgage is not delivered within 120 days after the Note Date, the Seller must submit a new PAR and obtain a new Condo Project Advisor Feedback Certificate, or, if applicable, the Mortgage may be resubmitted to Loan Product Advisor pursuant to
Section 5101.3
.
Note: If the requirements for Condominium Projects with a Project Certified status in this Section 5701.10 are met, then Seller is not required to comply with the requirements for any of the project review types in
,
5701.5 (Established Condominium Project reviews)
,
5701.6 (New Condominium Project reviews)
,
5701.7 (projects exempt from review)
and
5701.9 (Reciprocal project reviews)
.
