FHA Insider: FHA Responds To Short Payoffs and Delays Appraisal Rules

On Dec. 16, 2009, the Federal Housing Administration (FHA) published Mortgagee Letter 09-52, which issued guides for mortgage originators in circumstances where borrowers receive a short payoff from their current lender on either a sale or a refinance. Here is a summary of the five things you need to know about these changes:

1. Changes are effective as of Dec. 16, 2009.

2. Borrowers are not eligible for new FHA financing if they pursued a short sale only in order to take advantage of the declining market and acquire a similar or superior property within reasonable commuting distance.

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