NAR President Tom Salomone Calls HUD Condo Rule a “Start,” but Says More Changes Needed | Apartment Loan Depot Since 2005 – Fannie Mae and Freddie Mac Multifamily Loans Nationwide

(RECAP: When H.R. 3700, the “Housing Opportunity Through Modernization Act,” was signed into law earlier this year, HUD was given notice that they had 90 days to weigh in on regulations related to FHA financing for condominiums before changes automatically went into effect. These included rules regarding owner-occupancy rates and treatment of spot loans. In response to H.R. 3700, HUD today released a proposed rule on condominiums that includes positive changes, like a return of spot loans and an extension of the certification period, but also includes a proposal to set owner-occupancy rate requirements within a range of 25 percent to 75 percent. This is despite a 35 percent requirement laid out in H.R. 3700. The National Association of Realtors® praised sections of the rule, but remains concerned about the possibility of an overly high owner-occupancy threshold. NAR cited estimates showing that that less than 10 percent of all condos are FHA certified as evidence that more needs to be done.)