Magazine article Mortgage Banking

FHA Extends through 2012 Waiver of Anti-Flipping Rules

Magazine article Mortgage Banking

FHA Extends through 2012 Waiver of Anti-Flipping Rules

Article excerpt

On Dec. 28, the Federal Housing Administration (FHA) announced it would once again extend its waiver of its anti-flipping regulations, this time through Dec. 31, 2012, "unless otherwise extended or withdrawn." In normal market times, the regulations are intended to prevent investors from using FHA financing to generate profits from buying properties and doing little to improve them, and then quickly turning them over for much larger sums.

Acting FHA Commissioner Carol Galante stated in a press release, "This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight." Galante added, "FHA remains a critical source of mortgage financing and stability, and we must make every effort to promote recovery in every responsible way we can."

The anti-flipping regulations were waived first back in 2010, and that waiver originally extended through Jan. 31, 2011. But the Department of Housing and Urban Development acted again to extend the waiver through all of 2011. With this latest announcement, the waiver will be extended through all of the current year but all other terms of the existing waiver will remain the same. …

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