A Wall Street Journal article on Aug 14, 2019 titled U.S. Will Back More Condominium Loans Aimed at First-Time Buyers reports on loosening FHA rules.
« Now, the FHA will once again approve loans for individual units in buildings that aren’t certified… Individual loans will be approved in most buildings only if no more than 10% of the loans are to FHA borrowers. »
« Skeptics say now is a risky time for the government to back more condo loans. David Stevens, retired chief executive of the Mortgage Bankers Association, who ran the FHA through the fallout from the 2008 housing crisis, said he worries about repeating the mistakes of the past. »
« Fannie Mae and Freddie Mac back about half of new mortgages in the U.S. The FHA insured a million home loans last year made by banks and other private lenders, the vast majority of which were for single-family homes. With the new rules, the agency estimates it could insure as many as 60,000 additional condo loans each year, on top of the 16,000 condo loans it backed in 2018. »
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