The National Association of Realtors is calling on the Department of Housing and Urban Development to speed up implementation of reforms to the Federal Housing Administration’s condominium reforms.
Legislation signed by President Obama in July that makes numerous reforms to government housing programs included provisions that reduce restrictions on condominium buildings being FHA approved so that more FHA borrowers can purchase condominium units.
The Realtors are hoping HUD will issue an interim proposed rule soon that will allow some of the condo provisions to go into effect right away. But some in the housing industry worry a slow rulemaking process could delay implementation to after the November elections and the transition to a new administration. The Realtors estimate that less than 10% of condominiums currently qualify for FHA mortgage insurance.