Industry News

What to expect from FHA’s pending condo rule revisions

Officials shed light on issues to be addressed

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

WASHINGTON -- When acting FHA commissioner Carol Galante told a standing-room-only audience at NAR's midyear meeting last week that "we have heard you" on condominium issues -- and that FHA would publish revisions to the agency's controversial rules "very, very soon" -- she provided no details about what specific modifications the industry and consumers could expect.Some audience members speculated: Will the changes be enough to bring back FHA financing of individual condo units to thousands of communities across the country that no longer are certified?Will they be enough to open up financing to first-time buyers who seek to use low down payment FHA loans in places like Las Vegas, Miami, Phoenix and dozens of other markets where investors have purchased large percentages of condo projects, rendering them ineligible for FHA approvals under current rules?Could Galante and HUD simply throw in the towel and scrap -- or suspend -- the whole package of heavil...