The Champlain Towers South in Surfside, Florida, partly collapsed on June 24, 2021, leaving 98 casualties and many more homeless. Investigations revealed that design flaws, substandard construction, and a lack of proper and routine structure maintenance contributed to the disaster.
Having a structural engineer NJ could prevent these kinds of accidents from happening. Structural engineers are trained to designstructures that canwithstand stresses and pressures caused by human activity and environmental factors. They also select suitable building materialsthat will support the building. In addition, structural engineer New Jersey inspects the construction process and verifies the structural integrity of buildings and structures.
Notably, the Surfsidedisaster made mortgage industry giants apprehensive of loans secured by assets with serious safety concerns. This also caused small lending companies to become more conservative. Fannie Mae and Freddie Mac, players in the secondary mortgage market, took action to maintain confidence in the system. They introduced new mortgage requirements to loans tied to condominiums and cooperative projects. These recommendations are intended to protect the system from similar incidents and raise the bar for mortgaged properties.
The Federal National Mortgage Association (FNMA – “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC – “Freddie Mac”) are government-sponsored enterprises that contribute significantly to the affordability and availability of mortgages. They sell mortgage-backed securities to investors. And as middlemen between private lenders and security investors, they constitute a portion of the secondary mortgage market.
Banks use the funds they get from the federal mortgage agency to issuefurther loans to borrowers. Fannie Mae and Freddie Mac use the proceeds from the sale of securities to acquire new loans, perpetuating the cycle. Meanwhile, purchasers of securities profit from reduced investment risk.
Fannie Mae and Freddie Mac also establish the criteria for loans and mortgages. These companies do not interact directly with consumers. However, they create criteria for lenders that influence the borrowing terms of customers. Their requirements protect the industry and its participants from high-risk mortgages.
Continue reading on this topic with the infographic below from Lockatong Engineering. It discusses the surfside condominium tragedy, which results in stricter Fannie Mae and Freddie Mac requirements.
<p style=”text-align: center;”><a href=”https://www.lockatong.com/surfside-condominium-tragedy-results-in-stricter-fannie-mae-and-freddie-mac-requirements”><img class=”alignnone” src=”https://www.lockatong.com/wp-content/uploads/2022/03/Surfside-Condominium-Tragedy-Results-in-Stricter-Fannie-Mae-and-Freddie-Mac-Requirements-01.png” alt=”consultation of the Miami Herald” width=”800″ height=”8155″ /></a></p>
