FHA rescinds ill-conceived collection accounts rule
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The Federal Housing Administration (FHA) recently rescinded its more stringent requirements for financing home loans to buyers with collection or disputed-bill accounts of $1,000 or more. Even if a collection account was opened in error, the rescinded rule would have required the buyer to resolve the issue before closing on the home loan.
This restriction announced earlier this year was to go into effect on July 1, 2012. Critics of the rescinded rule claim low-income and minority applicants were being pushed out of eligibility by these increasingly high lending standards.
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About The Author
Carrie B. Reyes
is lead writer in charge of the Real Estate Practice and Due Diligence and Disclosures books.
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Excellent!! Another government mandate designed to give less-than-qualified people the opportunity to borrow money and not pay it back !! If you’re not qualified, you’re not qualified – period – except if the goverment wants to create a separate set of rules for you and you alone. Of course, if you mention “low-income” and minority, a lib-think euphemism for both “low Income” and “discriminated against group” it’s sure to raise everyone’s dander. I’m surprises they didn’t invoke “children” and “union members” as a coupl more aggrieved groups not getting what they may not actually deserve.
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