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The Community Home Lenders of America (CHLA) and the Community Associations Institute (CAI) urged the Trump administration on Wednesday to let the Federal Housing Administration (FHA) insure loans for condominiums in projects already approved by Fannie Mae or Freddie Mac but not yet cleared by FHA.
The request comes as the administration is reportedly deciding whether to take action by declaring a national housing emergency to address affordability challenges.
CHLA is the only national group representing independent mortgage banks, which originate 84% of all mortgages. CAI, meanwhile, represents the 7 million Americans living in condominiums, co-ops and homeowners associations.
“CHLA applauds the Trump Administration for reportedly looking at taking housing emergency actions to address homeownership and housing affordability challenges,” executive director Scott Olson said in a statement.
“Since condominiums are typically more affordable than freestanding homes, a simple but effective action to add to an emergency housing list would be to allow FHA to insure condos in projects approved by Fannie and Freddie — but not by FHA.”
“CAI strongly supports reciprocity between the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration condominium certification process and the government-sponsored enterprises, Fannie Mae and Freddie Mac,” CAI said in a statement.
“Streamlining this approval process is a common-sense step toward greater government efficiency, reduced bureaucracy, and expanded access to affordable housing for working families. CAI applauds the Trump Administration for considering these critical efficiencies that would support millions of current and future condominium homeowners.”
Industry officials say the move would narrow a long-standing gap in approvals as many more condominium projects are cleared by Fannie and Freddie than by FHA.
Condominiums remain among the most affordable entry points to homeownership. Per 2024 Zillow data, in the nation’s 25 largest metro areas, the average condo is 54% more affordable than a single-family home.
