As the federal government props up the finances of mortgage giant Fannie Mae and struggles to restructure the nation’s mortgage finance system, federal agencies are also re-examining their criteria for mortgages within condominium associations.
Recently, the Federal Housing Administration (FHA) has indicated that it may revisit its most recent set of requirements for financing purchases within condominium associations. CAI has expressed ongoing concerns that the current set of guidelines found in FHA Mortgagee Letter 2009-46(b) are not optimum measures of an association’s financial health.
In response to the possibility that FHA will revisit its condominium mortgage criteria, CAI has submitted a set of recommendations to FHA on improving its mortgage qualification process. Specifically, CAI is urging FHA to rethink its delinquency criteria, its owner occupancy criteria, commercial space limitations along with several insurance mandates. Read CAI’s letter.
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