With the increase in FHA insurance premiums, FHA is looking at further tightening of rules. However, they are also looking at what they have done to hurt the markets….for an update, we will be giving an FHA webinar next week
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Article from HousingWire…
The Federal Housing Administration may revise recent regulations some say are hurting purchases and refinances for condominiums. Last year, the FHA implemented several new restrictions on condo loans it would guarantee. At least half of the units must be owner-occupied for projects built longer than a year ago, and one investor can own no more than 10% of the units. The FHA also forbids refinancing for developments with more than 15% of the units more than 30 days past due. Rep. Robert Dold, R-Ill., questioned FHA Commissioner Carole Galante on the new restrictions at a House subcommittee hearing. Dold said those who cannot unload REO or rent space quickly are unnecessarily shut out of financing. “I will commit to you here that some of these I think we can make some adjustments. There are others where we have to walk an important line here to assure that FHA loans are stable and operating, because there is a concern about that for th FHA fund,” Galante said, referencing the fragile capital reserve accounts. The FHA endorsed more than $1.7 billion in condo loans from October to December, less than half of the $3.7 billion guaranteed in the same period the year before. Source: HousingWire