twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

FHA Bans Properties Sold Within Past 90 Days

Rule seeks to curb illegal flips

May 2, 2003

By staff

Perpetrators of flipping schemes will soon face burdensome regulations designed to restrict the practice, thanks to a final rule issued by the U.S. Department of Housing and Urban Development (HUD).

The predatory lending practice usually involves the resale of recently purchased property at an inflated price. Appraisers and lenders often cooperate in the fraud. The agency began researching ways to restrict this predatory lending practice in September 2001.

The Mortgage Bankers Association of America (MBA) issued a statement supporting the rule. "MBA looks forward to working constructively with the Federal Housing Administration (FHA) on implementing the rule so that it fulfills its intended purpose without unduly burdening responsible lenders," stated Kurt Pfotenhauer, senior vice president of government affairs, in the release.

The new rule, which will take effect June 2, bans 'rapidly resold' properties from aquiring FHA-insured mortgage financing. Under the rule, single-family housing units must stay on the market for 91 days before access to the financing eases.

Between 91 and 180 days, some restrictions still apply and extra documentation, such as a second supporting appraisal, is required from the lender in order to complete the transaction. This rule would kick in if the resale price is 100 percent above the original purchase price.

The HUD rule also allows for regulation of resales that occur within the first 12 months of ownership if the new selling price is five percent higher than the original purchase price. The HUD rule states that this oversight is an option if the agency has reason to believe the transaction is fraudulent.

Some transactions are exempt from the regulation, including HUD owned REO properties under 24 CFR part 291 and single family assets in revitalization areas pursuant to section 204 of the National Housing Act. Also, some properties involved in employee relocation can be transferred without submitting to the new regulation.

Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders