Lawmakers Push for Finalization of Streamlined FHA Condo Rules
More than 100 federal lawmakers are pushing for the Department of Housing and Urban Development (HUD) to finalize a set of streamlined Federal Housing Administration (FHA) condominium lending rules first agreed to in July 2016.
Letter signed by 174 lawmakers
Members of both parties sent a letter to HUD Secretary Ben Carson. This was signed by 54 Senators and 120 members of the House of Representatives, in an attempt to push for action. The rule changes are expected to make it easier for Americans to buy a home in a condo building.
“For nearly two years, Realtors have pushed the Department of Housing and Urban Development to finalize its rule streamlining and simplifying the process of securing a condominium loan. Thanks to the support of 120 Congressmen and more than half of all U.S. Senators, affordable home ownership opportunities could soon become available to countless additional Americans,” Elizabeth Mendenhall, president of the National Association of Realtors (NAR), noted in a statement.
Advocates say rule change will expand home ownership
The article reports that NAR is involved in the renewed push to get the HUD to approve H.R. 3700’s new rules, which include allowances for spot loans so that a single unit in a multi-unit building can be approved for FHA financing, as well as reductions to certification requirements and changes to owner-occupancy ratio rules.
Advocates say the rule changes will help expand home ownership by making condo home purchases a viable option for more home buyers, in part, because the changes will make it easier for buyers to get an FHA loan on condo properties, which previously had to meet tougher standards than single-family FHA loans.
The article reports it is not clear how Secretary Carson will respond to the push from NAR and lawmakers or why the HUD has not yet finalized the 2016 rule revision.