Magazine article Mortgage Banking

FHA Extends Waiver of 'Anti-Flipping' Rule through End of 2011

Magazine article Mortgage Banking

FHA Extends Waiver of 'Anti-Flipping' Rule through End of 2011

Article excerpt

Federal Housing Administration Commissioner David Stevens announced on Jan. 28 that FHA would extend a temporary waiver of its anti-flipping rule to allow local communities hard hit by foreclosures to find buyers for the resale of those properties. The Department of Housing and Urban Development said the extension of the waiver was originally intended to expire as of Feb. 1, but will now remain in effect through the remainder of 2011.

FHA regulations, with certain exceptions, prohibit FHA from insuring a mortgage on a property owned by the seller for less than 90 days. In early 2010, FHA announced it would temporarily waive this requirement through fan. 31, 2011. But now FHA has posted notice that it will extend the waiver through Dec. 31, 2011, "unless otherwise extended or withdrawn by FHA," according to HUD.

FHA Commissioner Stevens stated, "As I noted when we first announced this policy change early last year, because of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers." Stevens noted in a press release announcing the decision that the policy change has proven effective during the time it has already been in effect. …

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