Found another reason folks don't like condos

[Kelley B.]

Two days before closing my lender advises that neither FNMA nor FMMC would buy my loan. Only financing 70% of appraised value. 81 of the 86 units are non owner-occupied so they didn't want it. Non-warrantable.

Of course I'm out the $500 appraisal fee and $150 for some condo cert or something. Seems like the lender would have known up front that Fannie and Freddie didn't buy that paper. 

Should the lender have known or are the guidelines constantly changing? (Their story)