HUD Pushes Back Implementation of New Condominium Guidelines Again to December 7, 2009.

After already announcing a delay of the implementation of Mortgagee Letter 2009-19 to case numbers assigned on or after November 2, 2009, the Reverse Review reported today that HUD has delayed the implementation further. Guidance is expected from HUD in the next two weeks clarifying Mortgagee Letter 2009-19 and offering additional leniencies to address the difficult current market conditions. The changes will then go into effect on December 7, 2009.

For those who forgot, Mortgagee Letter 2009-19 changed the condominium approval process and condo unit eligibility for reverse mortgages. The Mortgagee Letter can be found at Mortgagee Letter 2009-19.

HUD Pushes Back Implementation Date for New Condominium Guidelines

In June, HUD released new guidelines for condominium approval for reverse mortgages. The guidelines were supposed to go into effect on October 1st. However, HUD has now announced that the new guidelines will only apply to case numbers assigned on or after November 2, 2009.

The mortgagee letter can be found at Mortgagee Letter 09-19ml, in case anyone needs a reminder as to the new HUD guidelines. The delay in implementation makes one wonder whether, if the new co-op eligibility requirements are ever announced, they will go into effect as scheduled.

Breaking News: HUD Mortgagee Letter 2009-19 Released on Condominium Approval Process

The US Department of Housing and Urban Development (HUD) released a new Mortgagee Letter 2009-19 on Friday afternoon, detailing new changes in the condominium approval process. The letter covers the two processing options for condominiums: HUD Review and Approval Process (HRAP) and the Direct Lender Review and Approval Process (DELRAP). The letter can be found at: 09-19ml.

Check back next week for more information.