Just recieved this notification that the new Condo Guidelines are being delayed again. One issue that was of interest to me was how Lenders were suppose to evaluate the Reserve Requirements. On another post here on Active Rain it was said for existing Condominums the guideline would be reserves needed to be funded at 60%. I have seen nothing to confirm that number, hopefully the updates promised by HUD will give the guidance for Lenders.
Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and
2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.
Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.