Editor's note: This article is republished with permission of Builder magazine. Some references to dates have been changed. View the original article: "FHA Ban on Loans to Collections-Plagued Buyers Postponed." By TERESA BURNEY Jeremy Radack, a real estate attorney who works with Texas builders to obtain mortgages for buyers, recently got a glimpse of what a proposed FHA rule change would mean to his business. "We saw about a 30 percent to 35 percent decrease in sales," said Radack. Starting April 1, FHA implemented a new rule that prevented mortgage applicants with $1,000 or more in disputed collections accounts from getting a federally backed loan unless they pay off the debt or can show a multimonth history of paying it down.On Thursday, April ...
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