Condo-Financing Rule Delay Has Been Detrimental

For mortgage originators, closing more loans is tough enough given the competition, lenders creating their own direct-to-homebuyer divisions and rising interest rates. Add to the list of troubles a curious case of inaction related to condominium financing.

Politics have always been the inescapable byproduct of democracy. Voters elect representatives, who in turn lobby for money and legislation on behalf of their constituency. Inevitable horse trading ensues with quid-pro-quo compromises serving as a politician’s currency. Although this dance is expected to happen within legislative bodies, it isn’t supposed to happen within federal agencies.

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The U.S. Department of Housing and Urban Development (HUD) has many functions, one of which is to maintain the Federal Housing Administration (FHA) mortgage insurance fund, as well as to craft the guidelines that govern lending for FHA residential mortgages.