Recently, I noted that we haven’t heard much talk about housing policy from either the sitting President or those seeking to take his seat.
But lo and behold, we get some news out of Congress that the House, by a vote of 427 to zero passed legislation that would reform FHA’s condo approval rules (FHA Condos). Wow 427-0, that’s pretty good.
These changes, along with some others outlined in the legislation, are intended to put more homes within the reach of more first-time and low to moderate income buyers. That’s more good news for consumers and lenders. But, is it enough?
My colleague, Gerry Glavey, wrote on this subject back in November when FHA first announced the changes to their condo approval process (Changes). If you missed it, this is worth the read.
He provided some good info with interesting insight. After all, Gerry was employed at FHA for over 37 years and when he retired he was the Director of the Philadelphia HOC’s Processing and Underwriting Division. I think he may know a little about FHA lending and the rules for condo approvals.
At least, this is some movement toward intended assistance for housing and home ownership. The challenge now is to get approval in the Senate and then sign off by the President.
BTW, Mr. Obama is concerned about a lender’s ability to potentially approve a project with higher limits on commercial space. A project that just might attract more first-time buyers from the Millennial generation. Getting these Millennials off the fence and into housing would be big for lending and the economy.
Let’s hope the Senate and the President see the light. Maybe a few phone calls and letters in support of these changes would help.
Lend responsibly my friends…