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