January 12, 2010
1354
MINUTES
REGULAR MEETING OF THE CITY COUNCIL
CITY OF Memphis
January 12, 2010
3:30 P.M. SCHEDULED SESSION

Starting February 1 and until January 31, 2011, HUD will be waiving its 90-day anti-flipping rule for FHA financing. The policy had originally been put in place to counter quick flipping that, coupled with fraudulent appraisals, had caused inflated pricing and exposed the FHA to a much greater risk for loss during recent market distress. The rule is being lifted to encourage more investors to rehab foreclosed properties while being able to provide their buyers with a reliable source of affordable financing in a shorter period of time. This also reduces the investor's risk of increased overhead costs and vandalism due to the property sitting unoccupied for a full 90 days. There are, however, some restrictions to this waiver:

In January, Federal Housing Administration (FHA) Commissioner David Stevens announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities.

CITY OFMEMPHIS
COUNCIL AGENDA
January 26, 2010
Public Session Tuesday, 3:30 p.m.