Freddie Mac eases rules for Fla. condo loans

By The Associated Press
Published: March 31, 2010

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MIAMI --

Freddie Mac moved to buoy the battered Florida condo market, waiving lending rules that made it harder to buy and sell units in many condo buildings.

Freddie Mac said today it will back mortgages on units in financially troubled condo developments as long as the seller's loan is already owned or securitized by the mortgage finance company.

The announcement is a reversal by Freddie Mac, which had been rejecting mortgages in condos with low occupancy and high delinquency rates for condo association fees.

Florida's once-burgeoning condo market has been hit hard by foreclosures, falling prices and high inventory caused by overbuilding. Condo prices have fallen by half since 2006 in parts of the state.