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FHA Urged to Ease Rules for Condo Refinancing

Sixty-nine Members of the House of Representatives, including Bay State Congressmen Barney Frank (D-Newton) and Jim McGovern (D-Worcester), wrote a letter to the FHA in mid-June, asking them to loosen restrictions on the sale of condominiums. The letter focused on four major concerns with the current condo rules, including treatment of delinquent dues, property certification requirements, owner-occupancy requirements, and treatment of commercial space. The letter urges FHA to reform these requirements which place burdens on sellers, buyers, and condominium properties and homeowners associations. This letter was a focus of NAR’s recent Midyear meetings and Capitol Hill visits.

NAR has urged FHA and the GSEs (Fannie Mae/Freddie Mac) to develop policies that will give current homeowners and potential buyers of condos access to more flexible and affordable financing opportunities and a wider choice of approved condo developments. Visit the NAR webpage for a more detailed view of their position and advocacy of this issue.