FHA To Implement New Condo Approval Process

Posted by Orb Staff on June 18, 2009 No Comments
Categories : Commercial Mortgage

deral Housing Administration (FHA) last week informed approved mortgagees and appraisers that it will implement a new approval process for condominium projects to insure individual units. According to [link=http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2009_MORTGAGEE_LETTERS/09-ML-19%20%20CONDOMINIUM%20APPROVAL%20PROCESS.PDF][u]Mortgagee Letter 2009-19[/u][/link], the FHA will allow lenders to determine project eligibility, review project documentation and certify compliance with HUD regulations. HUD will continue to maintain a list of approved condominium projects. Case numbers assigned on or after Oct. 1, 2009, will be required to follow the new process, although the FHA does provide a list of ineligible projects (e.g., condominium hotels, timeshares, multi-dwelling unit condos). Lenders will have two condominium project approval processing options: the HUD Review and Approval Process, and the Direct Endorsement Lender Review and Approval Process. The documentation requirements will be the same for each option. SOUR

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