Several blogs and newspaper articles have announced a temporary suspension to the FHA flipping rule. The intent is not to bring back predatory investment house flippers, but to help lenders move their foreclosure inventory.

The first blog I read this in was http://www.activerain.com/blogsview/553519/We-Can-Flip-Bush .

I verified the change with these articles at CNNMoney.com and Zimbio Business .

FNMA, FHMLC, federally chartered banks and other government related lenders have always been able to obtain a waiver to the FHA flipping rule. Now other lenders will be able to sell their inventories with FHA financing.

Initial thoughts were that this will probably also bring on a new waive of house flipping, as investors take advantage of this change in policy, but see the blog update below. It will certainly help lenders deal with the increasing numbers of foreclosed property to be able to access more buyers with FHA financing.

One of the thoughts behind this move is to encourage lenders to spend the necessary money to bring the properties up to FHA standards. The belief is that this will help stabilize values and generally upgrade neighborhoods that are being hurt by large numbers of foreclosures.

In Chattanooga, where our foreclosures are rapidly increasing, it will help sustain our property valuations. Lenders are now encouraged to perform property repairs so that the homes will pass FHA standards.

Repaired properties will bring higher prices.

The increased buyer pool caused by the availability of FHA financing, will also bring higher prices.

This is generally good news. I continue to check for more details.

Update
The FHA order waiving the flipping rule for mortgagees is found here at this link

My reading of the order is that it only applies to foreclosure properties. This will keep in force the effort to restrict investor property flipping.

I first saw the actual order copied in a post by Josh David.

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