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HUD/OH | RIN: 2502-AJ67 | Publication ID: Fall 2024 |
Title: Revision of Time Restrictions on Property Re-sales (FR-6354) | |
Abstract:
This rule proposes to revise HUD’s time restrictions on re-sales of forward mortgages eligible to be secured by FHA-insured mortgage financing. Currently, if the re-sale date of the property is 90 days or less following the date of acquisition by the seller, the property is not eligible for a mortgage insured by FHA. Prohibiting the use of FHA mortgage insurance for a re-sale within 90 days of acquisition adversely impacts the availability of affordable housing and does not align with other market participants approach to manage this risk with technology. In addition, HUD’s requirements for re-sales occurring between 90 and 180 days in all cases where re-sales exceed certain price change thresholds may result in unnecessary operational burden to industry participants. HUD has received feedback from stakeholders that the current regulation's deadlines unnecessarily slow the process of returning properties back to the market and dissuade sellers from accepting offers from buyers using FHA financing. HUD has demonstrated the ability to successfully leverage new technology to manage property valuation and flipping risks through the implementation of a collateral risk assessment tools and targeted documentation requirements in its Home Equity Conversion Mortgage (HECM) program and seeks to update its requirements in recognition of such experience. |
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Agency: Department of Housing and Urban Development(HUD) | Priority: Other Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 24 CFR 203.37a | |
Legal Authority: 12 U.S.C. 1707 12 U.S.C. 1709 and 1710 12 U.S.C. 1715b 12 U.S.C. 1715z-16 12 U.S.C. 1715u 12 U.S.C. 1715z-20 and 1715z-21 15 U.S.C. 1639c 42 U.S.C. 3535(d) |
Legal Deadline:
None |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: No | Federalism: No |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Brian Faux Director, Office of Single Family Program Development Department of Housing and Urban Development Office of Housing 451 7th Street SW, Washington, DC 20410 Phone:202 402-2186 |