Articles in Category: HUD Regulations

August 15, 2019

FHA Announces New Condo Loan Rules

The Federal Housing Administration has announced changes to its’ condo approval policies that could make it easier for house hunters to find and purchase condo units with an FHA mortgage. The changes are intended to increase lender flexibility and to adapt to changing conditions in the housing market. The FHA and HUD issued a press release on the new rules which states that the new rules …“will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved.” Under the old rules, a condo project had to be on the FHA approved list or added to it. As of October 15, 2019, the new FHA policies will, according to the FHA official site, include the following changes to FHA condo | more...

August 1, 2019

FHA Home Loan Rules And Fair Housing Laws

By Bruce Reichstein

We report on Fair Housing cases from time to time, a reminder to those looking for housing that there are federal laws that protect against discrimination in housing. But what are the FHA home loan rules in this area? Did you know that the FHA loan program has specific instructions to the lender regarding Fair Housing laws? Those instructions are found in HUD 4000.1, the FHA Single-Family Home Loan Handbook. Page 120 of that handbook instructs the lender, “The Mortgagee is required to comply with all federal, state and local laws, rules, and requirements applicable to the mortgage transaction, including all applicable disclosure requirements and the requirements of the Consumer Financial Protection Bureau (CFPB), including those related to: Truth in Lending Act (TILA); and Real Estate Settlement Procedure Act (RESPA).” | more...

July 30, 2019

HUD Approves California Housing Discrimination Settlement

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a California housing discrimination case involving complaints of “redlining” against CIT Group, Inc., and CIT Bank, N.A., doing business as OneWest Bank. Investopedia.com defines redlining as “an unethical practice” that can include denying mortgages, mortgage insurance, or other financial services based on location (the justification being that such locations are “bad neighborhoods”) rather than “an individual’s qualifications and creditworthiness.” This practice was made illegal by the Fair Housing Act. Specifically, the Fair Housing Act makes it a violation of federal law for discriminating on the basis of race or national origin to include the practice of denying credit to residents of predominantly minority neighborhoods. “Homeownership is the foundation of the American dream,” said Anna María Farías, HUD’s Assistant | more...

July 26, 2019

Qualifying For An FHA Home Loan With Disability Benefits

By Joe Wallace

FHA home loan rules permit the use of disability benefits to financially qualify for the loan. All income used in the lender’s debt ratio calculations must be verifiable, which means it must be a stable source of income and is likely to continue. Some borrowers worry that their disability income won’t be counted for the purposes of loan approval, but if that income meets FHA standards, there shouldn’t be any problem. Those standards are found in HUD 4000.1 and start with a basic definition: “Disability Benefits are benefits received from the Social Security Administration (SSA), Department of Veterans Affairs (VA), other public agencies, or a private disability insurance provider. “ These benefits must continue for at least three years into the mortgage to be counted as verifiable income. The lender | more...

July 24, 2019

HUD Announces Fair Housing Agreement In California Discrimination Case

By Bruce Reichstein

The Department of Housing and Urban Development has announced a concillaition agreement in a California Fair Housing discrimination case. Recently, HUD approved a $10,000 Conciliation Agreement between a California fair housing group and “the agents and mortgage company for Boardwalk Townhomes in Corona, California. This agreement settles allegations that Boardwalk Townhomes discriminated against African American home seekers” according to a HUD press release. Federal Fair Housing Act laws forbid those in the housing industry from offering different terms or conditions on the sale or rental of a dwelling based on race, color, national origin, religion, sex, familial status, or disability. Those who have been discriminated against in such a fashion should report violations to the Department of Housing and Urban Development. “A person’s race should never be a factor in | more...

July 17, 2019

Fair Housing: HUD Partners With John Marshall Law School

By Bruce Reichstein

The Fair Housing Act is an important law that requires those at every stage of the housing process to provide discrimination-free practices. The Department of Housing and Urban Development is at the forefront of efforts to insure fair housing, but the agency wants to do more than just act as the enforcement arm of Fair Housing law whether applicable to borrowers and house hunters or to those looking for rental properties. HUD recently announced a partnership with the John Marshall Law School in Chicago, and Cloudburst Consulting Group, Inc., to develop the National Fair Housing Training Academy (NFHTA). According to a press release on the HUD official site, this academy “will prepare fair housing advocates, lawyers, investigators, and other stakeholders on effective strategies and techniques for addressing discriminatory housing policies | more...

July 16, 2019

First-Time Home Buyers And Finding A First Home

By Joe Wallace

Are you looking for your first home? A Realtor.com survey reveals some interesting things about those looking for their first house, including some difficulties that affect many house hunters in today’s markets. The Realtor.com survey, conducted between March and June 2019, includes some demographic data about those exploring today’s mortgage rates and looking for suitable homes: 25 percent have been looking for a home in the past month 21 percent have been looking for 2-3 months 15 percent have been looking for 4-6 months 9 percent have been looking for 7-12 months 24 percent have been looking for more than a year And of that number, some percentages regarding problems house hunters are facing today. According to the survey, one of the main problems is locating an affordable home within | more...

July 11, 2019

HUD Charges Maine Apartment Owners With Fair Housing Act Violations

By Bruce Reichstein

Violations of the Fair Housing Act can seriously compromise a house hunter’s ability to find and keep housing. Even discrimination at the rental level can affect the ability to buy a home-how is someone supposed to rent an apartment in the meantime while dealing with discrimination? We report on these issues to raise awareness of how Fair Housing Act laws make house hunting more accessible and how violations of these laws hinder the consumer. In a recent example, the U.S. Department of Housing and Urban Development has announced charges against Roderick Apartments in Clinton, Maine for alleged violations of the Fair Housing Act. These charges are associated with a complaint that the apartment owners denied a veteran with disabilities to keep an assistance animal on the property. Fair Housing Act | more...

June 25, 2019

HUD Brings Fair Housing Act Charges Against Minnesota Landlords

By Joe Wallace

Housing discrimination can affect potential borrowers and renters at any stage in the house-hunting or home seeking process. Discrimination in rental housing can negatively affect the attempt to find and buy a home in cases where the victim needs to rent a unit while still looking for a house to purchase with a mortgage loan. Housing discrimination of any kind whether in renting or buying is prohibited by federal law. The Department of Housing and Urban Development recently announced charges against Minneapolis landlords in a Fair Housing Act case involving a rental unit denied to tenants over reasonable accommodation issues. The HUD official site published a press release alleging that the owners “refused to allow a single mother to live with an assistance animal, a cat, for her oldest daughter, | more...

June 6, 2019

HUD Announces Charges In Idaho Fair Housing Case

By Joe Wallace

April was Fair Housing Month, and while HUD’s annual push to raise awareness of housing laws in the United States has come and gone, the agency prosecutes Fair Housing cases year round. One the most recent; the U.S. Department of Housing and Urban Development (HUD) announced charges of Fair Housing Act violations against the owners and manager of a rental home in Nampa, Idaho. HUD’s case alleges that a married couple was refused a rental property there because they have children. The Fair Housing Act makes it a crime to “deny or limit housing because a family has children under the age of 18, make statements that discriminate against families with children, and impose different rules, restriction and policies on them” according to the HUD announcement at HUD.gov. “Denying a | more...