BREAKING: HUD Announces Change to FHA Condo Policies at Realtors® Conference
SAN DIEGO (November 12, 2015) – This evening, Federal Housing Administration Principal Deputy Assistant Secretary Ed Golding joined National Association of Realtors® President Chris Polychron on stage before a packed ballroom of Realtors® and industry experts to announce changes to FHA condominium policies.
NAR has long advocated for broad improvements to FHA’s condo rules, arguing that existing policy is overly restrictive and keeps many consumers from buying and selling a home.
To address these concerns, Golding announced at the conference’s kick-off event that FHA will make changes to its condo policies in line with those requested by NAR. Those include changes to the lengthy and complex recertification process in place today, burdensome owner-occupancy requirements, and limits on the types of property insurance that are considered acceptable coverage under FHA’s rules.
NAR has worked closely with the Department of Housing and Urban Development to push for changes to FHA condo policy, and NAR President Chris Polychron recently testified before Capitol Hill to bring attention to potential changes, including those related to recertification and owner-occupancy requirements. Golding told Realtors® at the event that changes related to insurance and recertification would take place immediately as part of a Mortgagee Letter to be released on Friday, Nov. 13. He added that policy changes related to owner occupancy, commercial space percentage, FHA concentration and spot approvals would be addressed in a formal rulemaking in the near future.
Polychron issued the following statement about FHA’s announcement:
“Realtors® and consumers got a welcome piece of news today with HUD’s commitment to fix FHA’s condo policies and broaden opportunities for families to find a home.
“Condos are often the most affordable option for homebuyers, especially first-time buyers, and making sure FHA financing is an option is important to supporting homeownership.
“This is a win and a tremendous step in the right direction. NAR applauds HUD Secretary Julian Castro and FHA Principal Deputy Assistant Secretary Edward Golding for taking action to improve access to credit for condos. We look forward to working with them again in the future to help more Americans achieve the dream of homeownership.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.