FHA Seeks to Preserve Role in Condo Market Through Guideline Revisions – NMP Skip to main content

FHA Seeks to Preserve Role in Condo Market Through Guideline Revisions

NationalMortgageProfessional.com
Jul 01, 2011

The Federal Housing Administration (FHA) has published updated condominium policy guidelines and instructions that clarify the approval and recertification process and policies for condo projects. FHA’s Mortgagee Letter 11-22 includes a Condominium Policy Guide and Implementation Schedule identifying timelines for lenders to comply with the guidelines. “Today, we institute revised guidelines that preserve FHA’s role in the condo marketplace during these difficult times while making certain we manage risk in a responsible way,” said FHA’s Acting Commissioner Robert Ryan. “This guidance formalizes and expands the policies we put in place in 2009 and lays the groundwork for a more formal rulemaking process going forward.” Mortgage Letter 11-22 will: ►Consolidate guidelines published in 2009; ►Provide a single source of information for the Condominium Approval and Recertification Process; ►Update, consolidate and clarify existing condominium policy guidance; and ►Expand FHA’s flexibility to consider exceptions at the individual project level.   Condominium project approval can be issued by FHA staff or by lenders who have delegated approval authority. In addition, FHA’s Homeownership Centers will have greater flexibility to make determinations to address individual circumstances on a one-on-one basis. The Housing and Economic Recovery Act of 2008 (HERA) transferred FHA’s condominium mortgage insurance authority from Section 234 of the National Housing Act to Section 203, thereby requiring the issuance of updated administrative guidance as well as new underlying regulations. FHA Mortgagee Letter 11-22 and Guide define the requirements for obtaining, recertifying and maintaining condominium project approval. Later this year, the U.S. Department of Housing & Urban Development (HUD) will publish proposed rules on FHA’s condominium program and seek formal comment from interested parties.
Published
Jul 01, 2011
MISMO Seeks Public Comment On 3 eMortgage Resources

Updates proposed to MISMO Business Glossary, eMortgage Glossary, and eModification Reference Flyer.

Regulation and Compliance
Aug 05, 2022
As Expected, The Fed Raises Rate By Another 0.75%

Experts say housing industry will shrug off the latest increase.

Regulation and Compliance
Jul 27, 2022
AmTrust Ends 'No-Poach' Agreement, Pays $1.25M Fine In Deal With N.Y. AG

Company also agrees to cooperate with ongoing investigations of the title insurance industry.

Regulation and Compliance
Jul 25, 2022
NAR Chief Economist: Nationwide Home Price Decline Won't Happen Soon

Lack of inventory continues to support growth in prices, which have increased year over year for 124 straight months.

Regulation and Compliance
Jul 22, 2022
FHFA Director: Fannie, Freddie Need $300B Combined In Capital

So far, the enterprises combined have built $83.5 billion in reserves, or about 27% of the target.

Regulation and Compliance
Jul 21, 2022
Expansion Of Community Reinvestment Act A Poor Fit For A Non-Problem

Equating non-bank mortgage companies to banks is misguided for several reasons.

Analysis and Data
Jul 20, 2022