HUD plans to loosen standards on condo lending

SOURCE: Mortgage News Feed

Facing charges that the standards on condominium lending are overly restrictive, the government announced plans to make a substantial rule change in the coming year and made some temporary revisions to its current guidelines. The U.S. Department of Housing and Urban Development (HUD) said it was streamlining the process for recertifying Federal Housing Administration (FHA)-backed condo loans and expanding the eligibility, moves intended to bolster lending over the next year while HUD undertakes a more comprehensive rules overhaul. FHA is the government’s most popular loan program for first-time and lower-income home buyers, but the agency has dramatically scaled back the number of condo loans over the past decade. Condo loans now represent roughly a 4 percent share of all its endorsements, even as the nation's condominium stock has risen, according to the National Association of Realtors (NAR). Read Full Article Here >>

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Each week we post articles on FHA/VA Government news topics, ranging from FHA Direct Endorsement Underwriters, to current FHA underwriting guidelines, to new FHA rules/regulations, FHA compliance, FHA lending requirements and much more! PLEASE NOTE: We are NOT owned, operated or affiliated with HUD, FHA or the Federal Government in any way.

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