Friday, January 15, 2010

CORRECTON: HUD Waiving Anti Flipping Rule for a Year.

CORRECTION: Original title indicated that waiver was for FHA repo sales only. That is NOT correct. Page 4 of the FHA Commissioner's waiver makes clear that waiver is for INVESTORS also, and property does NOT have to be a HUD repo.

Editorial Opinion: I'm not convinced that HUD/FHA will have sufficient controls in place to prevent windfall profits and additional losses to the FHA insurance fund. The 20% profit threshold for additional controls , and the weak controls themselves, may be insufficient to protect FHA.

HUD PR is HERE, includes link HERE to the document with actual FHA Commissioner waiver and associated restrictions/caveats.

Originally created and posted on the Oregon Housing Blog.

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