FHA notice on delay in FHA condominium changes

FHA notice on delay in FHA condominium changes:

Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7^th 2009.

The new guidance, to be issued within the next two weeks, will:

Ø offer additional leniencies to address the difficult market conditions

Ø augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.

Until the new guidance takes effect on December 7^th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo changes that have already been implemented are not affected by this delay.

To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit:http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

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