Heads Up Blog
Federal and state legislation and regulation can sometimes be introduced overnight and, during a hectic legislative session, bills can move swiftly. Legal issues can arise almost as quickly. This page provides general government affairs insight (updates, overviews and trends), regulatory items affecting CAI's members, and legislative information of note or news. For specifics on industry federal and state legislation, log in to the Advocacy Center.
View all 2013 Government Affairs Blog Posts
"Heads-Up Articles" Archives
Thu, 20 Nov 2014
On November 17, Freddie Mac released a servicing update which restated that if an association extinguishes a Freddie Mac lien, the servicer assumes liability for it. This is a continuation of the existing Freddie Mac policy and is seen as a positive from the position of community associations. To read the full bulletin, please click here.
The Single-Family Seller/Servicer Guide (“Guide”) Bulletin announces:
• MI delegations of authority for foreclosure sale bidding
• Aligned requirements for handling insurance loss settlements when the Mortgaged Premises is located in an Eligible Disaster Area or not
• Clarifications and revisions to our Servicing requirements for Borrowers who are Service members and their Dependents (as those terms are referenced in Guide Section 82.1, Overview)
• The retirement of Expense ManagerSM
With more than 33,000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home. Visit www.caionline.org or call (888) 224-4321.
Mon, 10 Nov 2014
The Community Associations Institute released the following statement in response to revisions to Fannie Mae’s Selling Guide—
“Fannie Mae’s November 10, 2014, update to its Selling Guide continues the process of standardizing project risk management for community associations and more fully integrating associations in the national housing finance system. Today’s Selling Guide update contains significant changes for community associations and will impact how association homeowner volunteers manage and govern communities.
“CAI is pleased that Fannie Mae has aligned policy on condominium association assessment delinquencies with Federal Housing Administration requirements in the lender full review process. This is an important, positive development for condominium homeowners. Additional changes that benefit condominium associations and homeowners include a modest increase in permissible commercial space and limited flexibility concerning single entity ownership of units in a project.
“CAI continues to review the numerous changes announced by Fannie Mae and will work with Fannie Mae to educate CAI members and community associations regarding new requirements. In particular, CAI is reviewing new Fannie Mae requirements that may lead to requests for associations’ federal Tax Identification Numbers (TINs) as well as new standards for association reserve studies.
To read Fannie Mae’s announcement of the 2014 update to the Selling Guide, click here.
With more than 33,000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home. Visit www.caionline.org or call (888) 224-4321
Mon, 22 Sep 2014
In today's housing market, the U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) plays a major in role in housing finance through its Condominium Mortgage Insurance Program. FHA issued regulatory guidance to set standards condominium associations must meet in order for a purchaser to qualify for FHA financing. The process for communities to meet these standards can be difficult to navigate as new rules are developed and implemented.
For this reason CAI has designed a guide for its membership to navigate the FHA Certification process. This guide will help homeowner volunteers and board members better understand the FHA Certification process while potentially saving them valuable time and money. Securing FHA Certification allows homeowners greater access to homebuyers while allowing homebuyers more options to become homeowners.
(Click here to view CAI's FHA Certification Guide)
• According to the Foundation for Community Association Research (FCAR), there are approximately 145,000 to 155,000 condominium projects in the U.S. Approximately 10 percent, or 14,650, of these projects are FHA certified.
• According to FHA data, in 2011 approximately 20 percent of the nearly 7,000 condominium projects seeking FHA approval were denied. In 2013, approximately 60 percent of the 3,500 condominium projects seeking FHA approval were denied.
If you have any questions or comments regarding FHA Certification or CAI's continued advocacy efforts to obtain housing finance reform that will benefit both homeowners and community associations, please contact CAI Government Affairs at firstname.lastname@example.org or (888) 224-4321.
CAI Government Affairs represents the interests of the 62.5 million people living and working in America's community associations on legislative and regulatory issues at the local, state, and federal level of government.