Newsroom
September 28, 2016
FHA proposes relaxed condo rules
The Federal Housing Administration this week proposed relaxed restrictions for agency-backed condominium loans to streamline the process and boost lending to first-time homebuyers.
The proposed rule would extend the recertification period for condo developments from one year to three and give flexibility to properties with commercial tenants. The FHA is also requesting comments to help determine a new owner-occupancy level – the proposal suggests a level between 25 percent to 75 percent. The current requirement is that 50 percent of condo units be owner-occupied to qualify for FHA funding.
The comment deadline for the proposal is Nov. 28; however, legislation passed in July will require the FHA to finalize a new occupancy threshold by the end of October. The legislation, part of the Housing Opportunity through Modernization Act (H.R. 3700), will impose an automatic level of 35 percent if the FHA does not settle on a number in time.
In November 2015, the FHA announced the relaxation of restrictions on agency-backed condos for one year while it worked on longer-term rules. The changes allowed tenant-occupied condos or condos listed for rent to count toward the current 50 percent owner-occupancy requirement.
The proposed rule would extend the recertification period for condo developments from one year to three and give flexibility to properties with commercial tenants. The FHA is also requesting comments to help determine a new owner-occupancy level – the proposal suggests a level between 25 percent to 75 percent. The current requirement is that 50 percent of condo units be owner-occupied to qualify for FHA funding.
The comment deadline for the proposal is Nov. 28; however, legislation passed in July will require the FHA to finalize a new occupancy threshold by the end of October. The legislation, part of the Housing Opportunity through Modernization Act (H.R. 3700), will impose an automatic level of 35 percent if the FHA does not settle on a number in time.
In November 2015, the FHA announced the relaxation of restrictions on agency-backed condos for one year while it worked on longer-term rules. The changes allowed tenant-occupied condos or condos listed for rent to count toward the current 50 percent owner-occupancy requirement.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.