Limited Review is gone, and a master policy deductible over $50,000 now blocks the loan
Limited Review is gone, and a master policy deductible over $50,000 now blocks the loan
2026-09-10 · Massachusetts · Compliance
What happened. Two changes in the March 2026 Fannie Mae and Freddie Mac condominium overhaul have already taken effect, and between them they change what a Massachusetts association has to be able to produce on demand.
- Limited Review is eliminated for loan applications dated on or after 3 August 2026. Limited Review previously accounted for roughly 40 percent of all project reviews.1
- The master policy deductible is capped at $50,000 per unit, effective 1 July 2026.
Why Limited Review mattered
Limited Review was the light-touch path: for qualifying transactions, a lender could approve a project without collecting the association's full documentation. Its elimination pushes every affected transaction into Full Review, which requires the association to produce budgets, reserve studies, insurance certificates and litigation disclosures.
Two other pathway changes soften the blow at the margins: waiver eligibility was expanded to projects of up to 10 units, and the 50 percent investor concentration limit was eliminated.
The deductible cap is the harder line
A $50,000 per-unit cap on the master policy deductible is a bright line, and it collides with where the Massachusetts market has been heading. Brokers marketing to Massachusetts associations report master policy deductibles across a $5,000 to $100,000 range — figures that are vendor-sourced and should be treated as indicative rather than measured.
Where an association has accepted a high deductible to hold its premium down, that trade-off now has a financing consequence rather than just a cash-flow one.
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