REALTORS® have long advocated for broad improvements to the Federal Housing Administration's condo rules. This month, before a packed ballroom of REALTORS® and industry experts gathered at the kick-off event for the National Association of REALTORS® (NAR) Conference & Expo in San Diego, Federal Housing Administration Principal Deputy Assistant Secretary Ed Golding announced changes to FHA condominium policies.
NAR has argued that existing policy is overly restrictive and keeps many consumers from buying and selling a home. To address these concerns, Golding announced that FHA will make changes to its condo policies in line with those requested by NAR. FHA's new guidelines will streamline the agency's lengthy and complex condominium recertification process, expand the eligibility of acceptable 'owner-occupied' units to include second homes that are not investor-owned, and expand eligible condominium project insurance coverage.
NAR has worked closely with the Department of Housing and Urban Development (HUD) to push for changes to FHA condo policy. NAR president Chris Polychron recently testified before Capitol Hill to bring attention to potential changes, including those related to recertification and owner-occupancy requirements. Golding told REALTORS® at the event that changes related to insurance and recertification would take place immediately as part of a Mortgagee Letter released Nov. 13. He added that policy changes related to owner occupancy, commercial space percentage, FHA concentration and spot approvals would be addressed in a formal rulemaking in the near future. Visit www/hud.gov for more details on the changes.
"Condos are often the most affordable option for homebuyers, especially first-time buyers, and making sure FHA financing is an option is important to supporting homeownership. This is a win and a tremendous step in the right direction," Polychron said in a statement.
More than 20,000 industry executives, REALTORS®, exhibitors and guests were at the REALTORS® Conference & EXPO Nov. 13-16 participating in hundreds of information sessions and professional development workshops to gain education and insights into residential and commercial real estate markets, home buying and selling trends, commercial market growth, economic forecasts, and public policy and regulatory concerns. Officially representing the Silicon Valley Association of REALTORS® at the event were president Chris Isaacson, president-elect Karen Trolan, NAR directors John Tripp and Leannah Hunt, and executive officer Paul Cardus.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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