New FHA Rules to Create New Association Duties

On September 13, HUD released new rules for the Fair Housing Act (FHA) that will impact community associations. Under these new rules, which take effect on October 14, 2016, a community association could face liability for the discriminatory acts of residents who harass or create a hostile environment for other residents.  As our regular blog […]

Condominium Leasing Restrictions’ Impact on FHA Home Loan Eligibility

Frequently, the governing documents of condominium associations contain limitations on the ability of owners to lease or sell their property, such as provisions requiring owners to obtain the Association’s approval before such leases or sales may take place. Although these provisions are often very important to the association’s ability to protect its members’ happiness and […]

Want to buy a condo? See how a new law could expand FHA options here in O.C. (CA)

For 15 years, Judy Johnson planned to get a reverse mortgage when she retired, supplementing her Social Security with proceeds from her San Clemente condo.  But after she stopped seeing clients and shut down her public relations business last year, Johnson discovered the government had changed the rules on her.  Her three-bedroom condo in Talega […]

New Law Makes Changes to FHA Condominium Approval Process

Unless a condominium association is certified by FHA, lenders may not offer borrowers FHA-insured mortgages. In 2009, FHA implemented a number of changes to the agency’s condominium approval requirements. As a result, the number of FHA-approved condominium associations has plummeted. In July 2016, President Obama signed into law H.R. 3700, the “Housing Opportunity through Modernization […]

FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States

Recently proposed changes in FHA lending programs and guidelines could have drastic effects for 22 states (including Colorado) and the District of Columbia. The proposed reforms would restrict owners’ eligibility for Home Equity Conversion Mortgages (i.e., reverse mortgages) in states where community association liens are provided “super lien” status    Read the article……………

New FHA proposal puts reverse mortgages above HOA super liens

The Federal Housing Administration proposed a new rule today that could strengthen its Home Equity Conversion Mortgage Program.  Perhaps one of the largest reforms, is the prioritization of the HECM lien above all others — the establishment of a so-called “super lien.”   “This rule proposes to require, as a condition for a HECM to be […]

HUD’S Fair Housing Decision Upheld by First Circuit Court of Appeals

The U.S. Department of Housing and Urban Development announced today that it has won an important Fair Housing Act victory in the United States Court of Appeals for the First Circuit. The decision upheld a Final Order of the Secretary of HUD following a trial before an administrative law judge that a condominium association discriminated […]

New HUD Guidance on Use of Criminal Background Checks

On April 4, 2016, HUD’s General Counsel released guidance for all housing providers (not just those who are HUD subsidized) regarding how the use of criminal background checks could potentially violate fair housing laws. If you are a Landlord and run criminal background checks as part of your screening process, it is important for you […]

Changes Coming in FHA Condominium Guidelines?

If you’re a listener to “Condo and HOA Buzz” you heard over the past two weeks that Congress recently passed a bill that includes important provisions affecting all condominiums in the country. On February 2, 2016, HR 3700 was approved by the House of Representatives 427-0. The proposed law would streamline the FHA’s certification requirements […]

FHA Condo Approval Changes

FHA loans are government-insured housing loans that make it easier for people with low credit, low income or a high debt-to-income ratio to get a home loan. The Housing Opportunity through Modernization Act of 2015 is an act that suggests making changes to these FHA rules in regards to condos. Check out these three important […]

Changes in FHA Condo Approvals?

On Tuesday of this week, H.R. 3700 – Housing Opportunity Through Modernization Act of 2015 passed out of the U.S House of Representatives, and yesterday it was received in the U.S. Senate and referred to the Committee on Banking, Housing and Urban Affairs. Why is this significant?    Read the article………

Quick Update: Proposed Changes to FHA Condominium Project Approval Process

According to Community Associations Institute (“CAI”), a leading national community association organization, the U.S. House of Representatives will vote today on important changes to the Federal Housing Administration’s (“FHA”) condominium project approval process. The changes to the FHA condominium project approval process are included in H.R. 3700, the “Housing Opportunity Through Modernization Act”, bipartisan legislation […]

Non-warrantable condos

I shared with you one of the most important things to understand when attempting to obtain financing for a condominium is an HOA Certification, or Homeowner(s) Association Certification. Without a completely acceptable HOA Certification by a lender, your condo loan is probably not going to get approved.  Read the article………….

New HUD Mortagage Letter Impact

On November 13, 2015, HUD released a new Mortgagee Letter (ML) in response to pressure from industry professionals and trade groups. The new ML has revised the current FHA Recertification process, redefined owner-occupants, and clarified insurance requirements.  For the purpose of this article I will go through the changes and how they will impact Condominium […]

New Rules For Warrantable & Non-Warrantable Condo Mortgage Loans

Buying a condo is a lot like buying a “detached home”, but with one big difference — mortgages are tougher to come by.  When you’re buying a condo, lenders impose a different set of rules on you, and may sometimes change your interest rate.    Read the article………..

Condominiums Spent Budgeted Reserve Contributions Elsewhere

In recent months while assisting condominiums to get certified and recertified with FHA, we are running into an issue that is a fairly simple one to avoid. We make it a point to remind our clients to contribute at least 10% of the budget to the reserve account annually. Not only does FHA require this, […]

Nevada district court bars foreclosure sale of first lien HUD-insured mortgage

Recently, a federal district court held that a homeowners association (HOA) foreclosure sale is not valid against HUD-insured loans. The District Court noted that the Ninth Circuit has held that federal rather than state law applies in cases involving FHA-insured mortgages to assure the protection of the federal program against loss, state law notwithstanding.   […]

HUD issues aggressive new fair housing rule

The U.S. Department of Housing and Urban Development (“HUD”) has finally issued its much-debated disparate impact rule. HUD argues that the rule—which it plans to apply retroactively—is simply a codification of its existing position that the Fair Housing Act authorizes disparate impact claims. But the rule goes well beyond that. It articulates a burden-shifting framework […]

HUD charges Pevely condo owner with violating Fair Housing Act

The U.S. Department of Housing and Urban development announced Wednesday that it filed a complaint against the owner, architect, builder and designers of the 36-unit Valle Creek Condominiums at 8011 Valle Creek Parkway in Barnhart, Mo., for violating the Fair Housing Act.  Read More……