FHA Delays Condo Changes, Reverse Mortgage Lenders Look for Guidance
October 23rd, 2009 | by admin Published in FHA, Generation Mortgage, News, Reverse Mortgage | 6 Comments
The US Department of Housing and Urban Development announced it’s delaying the implementation of FHA’s new policy guidance for condo project approval and condo unit financing until December 7th 2009.
The new guidance is expected to be issued in the next two weeks and will:
- offer additional leniencies to address the difficult market conditions
- augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification
There has been concern from reverse mortgage lenders that their DE underwriters are taking on untold risk by authorizing a condo without additional guidance from HUD. Until then, HUD said lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41.
Generation Mortgage announced earlier today that it would not be participating in the new process of approving condo projects and unless more guidance is issued I’d expect others to follow their lead.
- Related Posts
- HUD Updates Condo Approval Process For Reverse Mortgages
- HUD Accepting Condo Re-Certifications, Should Speed Up Approval Process
- FHA Says Overwhelming Number of Condo Approval Requests
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October 23rd, 2009 at 7:57 am (#)
admin,
Can you please provide a specific webpage on the HUD website where this statement is presented? I have had borrowers ask about the delay for the last few days. I can find reports on it but no official HUD statements.
Thanks.
October 23rd, 2009 at 8:21 am (#)
Critic,
Check your email, I don't think they posted an actual statement, it came from an email.
October 23rd, 2009 at 2:57 pm (#)
admin,rnrnCan you please provide a specific webpage on the HUD website where this statement is presented? I have had borrowers ask about the delay for the last few days. I can find reports on it but no official HUD statements.rnrnThanks.
October 23rd, 2009 at 3:21 pm (#)
Critic, rnrnCheck your email, I don’t think they posted an actual statement, it came from an email.
October 23rd, 2009 at 12:28 pm (#)
Thanks.
October 23rd, 2009 at 7:28 pm (#)
Thanks.