Articles in Category: HUD Regulations

May 19, 2016

FHA Proposes New Rule To Strengthen Reverse Mortgage Program

The FHA has announced a new proposed rule intended to strengthen the Home Equity Conversion Mortgage (HECM) loan program. According to the FHA official site, the proposal would “codify several significant changes to FHAs Home Equity Conversion Mortgage program that were previously issued under the authority granted to HUD in the Housing and Economic Recovery Act of 2008 and the Reverse Mortgage Stabilization Act of 2013, and to make additional regulatory changes”. A press release at FHA.com states the new rule would, once approved, “make certain FHA-insured reverse mortgages remain a viable and sustainable resource for senior homeowners hoping to remain in their homes and age in place.” The agency has spent the last two years working on reforms intended to improve the FHA HECM program. “We’ve gone to great | more...

May 17, 2016

FHA/HUD Appraisal Standards Part II

By Joe Wallace

In our previous blog post we discussed FHA loan appraisal standards and answered a reader question about what it means for FHA/HUD standards to include the term “whenever feasible” in relation to certain features such as city utilities (versus wells or cisterns, for example). Further clarification of the FHA and HUD position on minimum property standards is available from the HUD official site (www.HUD.gov), which includes the following background information: “Until the mid-1980’s, HUD maintained separate Minimum Property Standards for different types of structures. Since that time, HUD has accepted the model building codes, including over 250 referenced standards, and local building codes, in lieu of separate and prescriptive HUD standards.” But, the official site adds, there is an important difference when it comes to the FHA/HUD standards versus other | more...

May 17, 2016

FHA Mortgage Appraisal Requirements: A Reader Question

By Joe Wallace

We get many questions about the FHA loan appraisal process in our comments section. Here’s one of the latest: “What does whenever feasible mean? My lender is telling me I need a quote on connecting to the public sewerage system and that this should be more than 4% of the purchase price to be considered not feasible. Where are they getting this information?” This question is in reference to an older blog post we made in 2014 discussing FHA/HUD appraisal standards for septic systems. Here is the specific part of the post the reader is referencing: “In general, the FHA minimum property requirements for sewer systems, as listed in HUD Handbook 4940.3 states: ‘Whenever feasible, connection shall be made to a publicly owned or publicly controlled system that is adequate | more...

May 11, 2016

HUD Fair Housing Decision Upheld By Appeals Court

By Joe Wallace

An appeals court has upheld a HUD Fair Housing determination. According to the press release at HUD.gov (HUDNo.16-070), “The U.S. Department of Housing and Urban Development announced today that it has won an important Fair Housing Act victory in the United States Court of Appeals for the First Circuit.” According to the press release, the appeals court decision backs a “Final Order of the Secretary of HUD” following a trial before an administrative law judge, “that a condominium association discriminated against a resident with disabilities by refusing to allow him to keep an emotional support animal.” Federal Fair Housing laws prohibit discrimination against people with disabilities to include “no pet” rules that affect a home owner or renter’s ability to keep a support animal (that would include home owner or | more...

What you should know about FHA 203(h) Loans For Disaster Victims

May 5, 2016

HUD Launches Healthy Homes App

By Joe Wallace

If you have been looking for a new home to purchase with an FHA mortgage, or if you have recently purchased a home, you may be interested in the latest app from the Department of Housing and Urban Development. The Healthy Homes app was created to raise awareness of healthy homes issues including mold, asbestos, pest control, carbon monoxide, and more. According to a press release on the HUD official site, “…this Healthy Homes app offers a convenient tool for users to learn about common health and safety risks in the home. The app provides extensive content in clear, simple language so that users can quickly understand the potential hazards throughout a home. The app also helps residents who live in condominiums, single- family detached homes, townhouses, or in apartment | more...

May 4, 2016

HUD brings Fair Housing Charges Against New York Co-Op

By Joe Wallace

The month of April may have been Fair Housing Month, but the work of the Department of Housing and Urban Development continues in the cause of ending housing discrimination. One of the latest press releases from HUD involves an investigation of alleged housing discrimination in New York. According to a press release on the HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a White Plains, New York, co-op with housing discrimination for refusing to grant an exception to its policies that would allow a person with disabilities to buy a unit there. HUDs Office of Regional Counsel for New England, which has jurisdiction over the case, issued the Charge of Discrimination on April 26”. Such discrimination is not permitted under | more...

May 3, 2016

HUD: $37 Million To Fight Housing Discrimination

By Joe Wallace

The Department of Housing and Urban Development has announced $37 million in funding to fight housing discrimination. According to a press release on the HUD official site, the most recent announcement is one of three notices designed to, “support a variety of important fair housing activities, including fair housing testing in the rental and sales market, public education efforts, capacity building, and education and outreach activities.” The work HUD’s fair housing partners do every day is critical to our efforts to ensure that every family in America has an equal shot at finding the home that is right for them, said HUD’s Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez, who was quoted in the press release. These grants help to provide the critical financial resources they need | more...

April 28, 2016

HUD Charges Massachusetts Landlord With Fair Housing Act Violations

By Joe Wallace

April is Fair Housing Month, and as the month winds to a close, there are still a variety of government actions involving violations of federal fair housing law-actions taken against landlords, lenders, and others associated with housing. We report on these issues as press releases are issued from the Department of Housing and Urban Development for several reasons. The most important of those reasons is to raise awareness of Fair Housing laws and to remind our readers that the first line of defense against violations of the Fair Housing Act is often found at the consumer level. Those who report housing discrimination complaints to HUD help end future discrimination as well as get government action on the case at hand. Fair Housing Act violations affect everyone–borrowers, buyers, renters, lenders, etc. | more...

April 25, 2016

HUD Announces Agreement in Fidelity Bank Discrimination Case

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a case involving Fidelity Bank and allegations of Fair Housing Act violations. According to HUDNo.16-054, “The U.S. Department of Housing and Urban Development (HUD) announced today a $1 million agreement between the Fair Housing Project of North Carolina Legal Aid and North Carolina-based Fidelity Bank to resolve allegations the mortgage lender engaged in unfair lending practices against minority applicants”. Federal law makes it illegal to “make housing unavailable or to discriminate in the terms, conditions, or privileges of the sale of a dwelling because of race” according to the press release on the FHA/HUD official site. “The Fair Housing Act also makes it unlawful for any person or entity whose business includes residential real estate-related transactions to discriminate | more...

April 19, 2016

HUD Files Discrimination Charges Against Kansas Landlord

By Joe Wallace

Fair Housing laws don’t just protect home loan applicants. They also protect renters and house/home hunters in the process of trying to find a place to live. You may not think that a housing discrimination case against a renter or potential renter has much to do with FHA loans, but consider the large number of people every year who must relocate due to employment or education needs and it’s clear that even for those who haven’t committed to an FHA mortgage yet, fair housing issues can affect your journey to a new place to live. That’s one reason why we report on cases like the recent HUD charges brought against a Kansas landlord. According to a press release on the FHA/HUD official site, ” U.S. Department of Housing and Urban | more...