Public Affairs Update…………………………………………………November 9, 2016
NAR: TRID Rule Has Pros and Cons
FHA Condo Owner-Occupancy Update
On Oct. 26, 2016, the Department of Housing and Urban Development (HUD) issued a mortgagee letter making changes to the Federal Housing Administration's (FHA) owner-occupancy requirement for condominiums in accordance with the requirements of H.R. 3700, the Housing Opportunity Through Modernization Act of 2016 (HOTMA). Under the new provisions, FHA approved condominium projects require at least 50% of the units to be owner-occupied, but will allow for the owner-occupancy requirement to be lowered down to 35% if:
-The project has replacement reserves of at least 20% of the budget,
-No more than 10% of the units are in arrears (more than 60 days past due), and
-The condo has three years of acceptable financial documents.
Mortgagee Letter 2016-15 - FHA Owner-Occupancy [Source: NAR Update 10-31-2016]
USDA Guaranteed Loan Fee Change
As of October 1, 2016, the upfront guarantee fee for USDA Guaranteed Loans is now 1.0% of the loan amount, a reduction of 1.75% from FY 2016. The annual fee is now 0.35% of the average scheduled unpaid principal balance for the life of the loan, a reduction of 0.15% from FY 2016. USDA Announcement on Fees [Source: NAR Update 10-31-2016]
With the lion's share of job growth concentrated in the nation's largest metros, could housing affordability be contributing to the growth? READ MORE [Source: DSNews.com 11-04-2016]
Pizza & Public Affairs Wednesday December 7, 2016 Noon to 1:00pm at BARA
Guest Speaker: Ted Leighty, CAR Vice President of Government Affairs
What He Will Present: Preview of the 2017 Legislative Session
You will get an early head’s up on how the 2017 legislative session could affect your business, real estate and the Colorado economy.
In Case You Missed It