July 29, 2016 - The
White House announced President Barack Obama has signed H.R. 3700, the Housing
Opportunity through Modernization Act. H.R. 3700 is now federal law.
3700 reforms the process used by the Federal Housing Administration (FHA) to
determine if condominium unit owners qualify for a mortgage with FHA insurance.
FHA does not originate mortgage loans, but instead insures mortgages against
mortgages are widely used by first-time and minority homebuyers to purchase a
home. In 2009, FHA changed its condominium qualification rules, leaving the
majority of condominium homebuyers ineligible for FHA-insured mortgages. H.R.
3700, which CAI strongly supported, is expected to expand the number of
condominiums where borrowers can use an FHA-insured mortgage to purchase a
congratulate Chairman Blaine Luetkemeyer, Ranking Member Emmanuel Cleaver, and
the leadership of the House Financial Services Committee on the thoughtful,
constructive, and inclusive process that produced H.R. 3700,” said Thomas M.
Skiba, CAI’s Chief Executive Officer. “This bipartisan approach, furthered by
Senator Tim Scott and Senator Bob Menendez, allowed H.R. 3700 to pass the
Congress without a single dissenting vote.”
FHA must now begin its implementation of H.R. 3700, which will involve changes
to FHA regulations and existing agency guidelines. CAI’s Federal Legislative
Action Committee will work with and on behalf of CAI members to urge that FHA
move forward in a thoughtful and inclusive manner to fully implement H.R. 3700.
legislative process is now over and H.R. 3700 is law of the land. Congress
has clearly spoken, saying FHA’s current condominium recertification process is
too burdensome and existing FHA rules on transfer fees must be changed. It’s time to roll up our sleeves and work in the same collaborative fashion
that produced H.R. 3700 to ensure this law is fully implemented.
More information on H.R. 3700 may be found here.