Articles in Category: HUD Regulations

November 21, 2019

Types Of Homes You Can Buy Or Build With An FHA Mortgage

What types of home can you purchase or build with an FHA mortgage? For the purposes of this article, we are talking about the status of the property rather than the property type. It’s true that FHA loans are available for condo units, mobile homes, and manufactured homes, and you can also use an FHA One-Time Close construction loan to build a home from the ground up on your own land. You can use an FHA mortgage to buy or build a single-unit home or you can purchase a property with as many as four living units. But FHA home loans also take into account the status of the property as an existing construction home, new construction, etc. The list of property types includes: Proposed Construction where no concrete or | more...

November 19, 2019

HUD Announces Fair Housing Act Violation Settlement With Oglethorpe Square Apartments, GA and Gene B. Glick Company, Inc.

By Joe Wallace

The Department of Housing and Urban Development has announced a settlement in a housing discrimination case involving Oglethorpe Square Apartments of Savannah, Georgia, and Gene B. Glick Company, Inc., of Indianapolis, Indiana. Housing discrimination creates unfair conditions for those who need to rent or buy a home and thanks to the Fair Housing Act there is recourse for those who experience discrimination at any stage of the housing process (see below for information on how to report housing discrimination). Many times, the only people who have the power to stop further violations of federal law are the victims of the discrimination; without reporting the illegal activity, it can go on uncontested for a long time. It’s hard to believe that in the 21st century we must still read about the | more...

November 6, 2019

HUD Announces Million Dollar Settlement With Bridgeport Housing Authority Over Disability Discrimination Claims

By Bruce Reichstein

No matter what stage you are at in the house-hunting process, discrimination has a chilling effect on your efforts to find a home. It does not matter if you are renting or buying, discrimination corrupts every stage of the housing process. That is one reason we report on Fair Housing cases here; borrowers sometimes don’t fully understand their rights or the fact that in order to prevent future discrimination tomorrow, the victims of today’s Fair Housing Act violations have to report the illegal activity to call it to the attention of HUD. This is vital in any case; in today’s action, HUD did not get the initial complaint from an outside source (which seems rare for this type of Fair Housing Act issue) but rather from a HUD compliance review | more...

October 30, 2019

HUD Announces New Partnership To Enforce FHA Guidelines

By Bruce Reichstein

The Department of Housing and Urban Development has announced the signing of a Memorandum of Understanding (MOU) between the agency and the Department of Justice designed to provide guidance on pursuing disciplinary actions in cases brought against participating FHA lenders who may be in violation under the False Claims Act (FCA). “This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” according to one HUD official quoted in the agency’s press release. The United States Attorney General is also quoted in the press release adding, “”This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” The agreement means HUD and | more...

October 1, 2019

HUD Brings Fair Housing Act Charges Against New York Landlord

By Bruce Reichstein

The U.S. Department of Housing and Urban Development has announced charges of violation of the Fair Housing Act against a landlord in Hamburg, New York. The landlord, named in the HUD complaint as Thomas Frawley, is charged with “refusing to rent to and making discriminatory statements about families with children” according to a press release at the FHA/HUD official site. Fair Housing Act laws make it illegal to discriminate against those seeking housing (rental or purchase) because of family status including having children below the age of 18 years old. There are certain exceptions for age-restricted housing; the HUD official site reminds, “Housing may exclude children only if it meets the Fair Housing Act’s exemption” for certain types of housing meant only for older tenants. The charges in this case | more...

September 20, 2019

What You Should Know About Mortgage Loan Interest Rates And The Fed Rate Cut

By Bruce Reichstein

The week of September 16, 2019, the Fed cut interest rates for the second time in the year; the 25 basis-point rate cut alters the Fed rate but is not a direct cut or change to mortgage loan interest rates. Interest rate decline in 2019 have pushed more home owners toward refinance loans and many wondered if the latest Fed cut would affect mortgage loan rates in a refinance-friendly directions. Fed rate cuts do not get applied directly to mortgage loan interest rates, but investor behavior following the announcement of a rate adjustment, during the adjustment itself, and the aftermath may have a definite influence on mortgage rates. So if you find yourself wondering whether the Fed rate cut will change home loan interest rates, watch the investors and their | more...

September 17, 2019

HUD Brings Charges Against Housing Design And Construction Companies

By Joe Wallace

The Department of Housing and Urban Development has announced charges against companies in New York, Pennsylvania and Georgia for alleged violations of the Fair Housing Act. We report about Fair Housing cases in this space to remind house hunters of their Fair Housing Act rights, but it’s not as common to report on a case that spans multiple companies and states the way this case does. HUD’s charge involves accusations of housing discrimination associated with the design and construction “of a 40-unit North 8 Condominium development in Brooklyn, New York, in accordance with the accessibility requirements of the Fair Housing Act”. Those named in the HUD Fair Housing Act charges include Toll Brothers, Inc.; Toll Land XIII Limited Partner; Lendlease (US) Construction LMB, Inc; Greenberg Farrow Architecture, Inc.; and 51 | more...

HUD Releases Housing Reform Recommendations

September 6, 2019

HUD Announces Housing Reform Recommendations

By Bruce Reichstein

The Department of Housing and Urban Development has issued recommendations to the President for housing reform, including attention on down payment assistance programs and cash-out refinancing. According to a press release issued on the HUD official site, this is NOT the same housing finance reform plan, which was developed by the U.S. Treasury Department. There are major differences between the two in some respects including the HUD language discussing the need to focus on “the core mission” of the FHA where home loans are concerned. It’s the view of the Treasury Department (as stated in the plan) that any changes to the core of what has traditionally been considered an FHA loan program could be detrimental. The Treasury Department plan states, “…any proposal to fundamentally change the housing finance system | more...

September 3, 2019

HUD Announces Fair Housing Charges Against Colorado Landlords

By Bruce Reichstein

Housing discrimination can affect any stage of the house hunting process. And even when that discrimination occurs with a rental property, it can seriously affect the ability to locate and purchase a home. House hunters who need to rent during their journey to home ownership have it difficult enough with all the paperwork and preparation in the home buying process. They don’t need violations of federal law making the process harder, and sometimes the victims of such discrimination are the only ones who have the power to stop future vioations. The U.S. Department of Housing and Urban Development (HUD) has announced Fair Housing Act charges for owners and manager of a complex in Gunnison, Colorado. David B. Welch, John H.Welch, and Ruth E. Welch are all named as Respondents in | more...

August 29, 2019

FHA Home Loans For Manufactured Homes

By Joe Wallace

Many borrowers want to know if there are FHA home loans for manufactured homes, modular homes, or mobile homes. The short answer is yes, there are, but the FHA home loan program does feature some rules you should know before deciding on the right manufactured home for you. FHA Loan Rules For Manufactured Homes: Permanent Foundation Required FHA mortgage loan rules for manufactured housing (located in HUD 4000.1) include a requirement that the property is or will become attached to a permanent foundation that meets federal and state requirements. FHA home loans cannot be made for any mobile home that cannot or will not be attached to a permanent foundation and FHA mortgages cannot be approved for recreational vehicles or houseboats. Manufactured Home Age Requirements Mobile homes and manufactured homes | more...