191 Condo Projects Make Miami-Based Bank's "No Mortgage" Blacklist

The South Florida Business Journal reported last week that it obtained an internal list maintained by the Miami-based BankUnited, that sets forth 191 condo projects, units in which it won't write mortgage loans for. The list of "non-permissible" projects was updated as of Jan. 14. An excerpt:

• Most of the forbidden properties were in Miami and were added at the last update. It wasn't clear who at the bank wrote the list, but the author stated a reason for almost every project declared off-limits. Declining market value was the biggest culprit, followed by high investor concentration -- as much as 70 percent in one case. BankUnited also cited numerous foreclosures, delinquent homeowners association dues, structural-based litigation and the bank's existing exposure in the buildings. BankUnited spokeswoman Melissa Gracey said the list is based a similar guidelines used by Fannie Mae and Freddie Mac.

For more, including the list of condo projects BankUnited's loan officers are to avoid like the plague, see:

• BankUnited blacklists 191 condo projects,
• For a more extensive article on the blacklisting of South Florida condo projects, see South Florida Daily Business Review: Condo Meltdown (Some condo buildings get blacklisted by lenders) (if link expires, try here),
• For the observations of one blogger who suggests that publicly posting the BankUnited exclusion list could cause other lenders to follow suit, see Blacklist Domino Effect About To Hit Florida,
• In what may or may not be a related story also reported last week, see The Associated Press: BankUnited shares tumble on loan worries.

Go here for other posts related to the Miami condo market problem.