The Department of Housing and Urban Development announced it’s allowing lenders to re-certify condo projects that were initially approved on or after January 1, 2000.
While Mortgagee Letter 2009-46 provided information regarding re-certification requirements, HUD said that systems were not able to handle the process. This lead to backups in approvals and ultimately delayed closing for consumers.
As of August 23, 2010, re-certifications may by processed said HUD.
As part of the new FHA condo rules, reverse mortgage lenders can use the HUD Review and Approval Process (HRAP) or the Direct Endorsement Lender Review and Approval Process. If the project was initially approved prior to January 1, 2000, full project approval will be required.
The Condominium Recertification Processing Requirements includes processing instructions, a cover document and checklist. For more information see here.
