Real Estate Forum: What to expect from FHAs pending condo rule revisions |

… there's an excellent chance that some of the specific requirements that have bugged associations and unit sellers will be modified in a two-step process scheduled to begin shortly. FHA plans to issue a mortgagee letter to lenders in the near future that revises a number of the current rules.

Allison Simson

But it's also working on drafting a full-blown regulatory proposal that will allow the industry and public to weigh in on the pros and cons of the proposed rules — an opportunity that was conspicuously absent when the current rules were promulgated.

Once those comments are digested, the agency will publish final regulations designed to govern the condo financing program for the long term. Timeline on that: Probably sometime in 2013. During the interim, the rule changes outlined in the soon-to-arrive mortgagee letter will be in effect.

Real Estate Forum: What to expect from FHAs pending condo rule revisions |

Allison Simson, the author, does a particularly good job of explaining the onerousness of condominium-project certification language.

If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.