2026-09-10 · Hawaii · Compliance

There is one status a Hawaii condominium project can carry that no automated approval overrides. The Selling Guide language is unambiguous:¹

“Loan Delivery will not accept loans in projects that have a status designation of ‘Unavailable in CPM’ for insurance reasons as of the note date, even if DU reflects the Approved by Fannie Mae message.”

CPM is Condo Project Manager, the lender-facing system that carries a project’s eligibility status. DU is the automated underwriting engine. An approval from the second does not cure a flag in the first.

The second sentence, which explains how buildings get flagged late

“Fannie Mae does not review insurance policies as part of the review process, including when the loan has received a CPM Approved by Fannie Mae message in DU.”

Verification is the lender’s job. Nothing about a project’s insurance is checked centrally, which means a building can sit in good standing until the first lender actually reads the master policy.

And the reporting duty that propagates it

If a lender learns of anything that could affect eligibility — the guide names “significant deferred maintenance” and “major litigation” — it must notify the CPM Management team no later than five business days after becoming aware.

That is the pipe through which one building’s disclosure becomes a project-wide status change.

1. Fannie Mae Selling Guide B4-2.2-02, Full Review Process (CPM delivery bar and lender reporting duty) ↩
2. DCCA Insurance Division, Condo Insurance FAQs ↩