Update: H.R. 3700/ S. 3083 Signed into Law

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Education & Training with Adhi Schools, LLC
https://activerain.com/droplet/4TP5

As we predicted on July 20th, H.R. 3700/ S. 3083 (also known as the Housing Opportunity Through Modernization Act of 2016), the bipartisan housing legislation that passed through Congress without receiving a single “no” vote, was signed into law by President Obama on Friday, July 29th.

The new law will reform HUD’s Section 8 housing voucher program (and any other family rental assistance programs) by requiring public housing agencies (PHAs) to develop new systems to properly review the incomes of families receiving assistance, to cease assisting families with assets exceeding $100,000, and a cap on project-based vouchers (those vouchers tied to the unit, not the tenant).

The FHA mortgage insurance eligibility requirements have also been changed. The FHA has now been instructed to make recertification of eligible condominiums less burdensome and to lower the required percentage of units occupied by owners in a development from 50% to 35% in order to qualify.

Loan approval authority for the USDA Rural Housing Service’s single family housing guaranteed loan program will now be made available to preferred lenders, streamlining this program.

As noted earlier, we predicted that this legislation would pass due to its broad bipartisan support and common sense reforms to important government policies and programs. We supported the legislation, as did the National Association of REALTORS®, California Association of REALTORS®, California Association of Mortgage Professionals, and other professional organizations. The reforms to FHA condominium approval processes are particularly promising and have the opportunity to open up more affordable housing opportunities for Americans while incentivizing the development of more housing, something we desperately need.


 

The full text (with summary) of the law can be found hereOr view the previous post summarizing some of the key impacts. What are your thoughts? What impact will this have on the industry?

Posted by

Cody Carmen

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Topic:
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Mortgages
Tags:
affordable housing
fha
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housing reform
president obama

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Rainer
212,135
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

Seems like someting positive for a change.

Aug 01, 2016 09:15 AM #1
Ambassador
2,975,945
Anna Banana Kruchten Arizona's Top Banana!
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Cody - common sense prevailed. Isn't that great! Thanks for the update - very helpful info.

Aug 01, 2016 10:07 AM #2
Rainmaker
1,371,834
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

The FHA change will hopefully make home ownership a reality for lots of people.

Aug 01, 2016 10:53 AM #3
Rainmaker
4,818,767
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Cody,

Thanks for information, It seems like we are moving in a positive direction, but is it a REDUX of the past that led us on the slippery slope of short sales, etc.?  I just saw that 1st Republic Bank is offering no money down loans on $2million and have opened offices in FB and Twitter buildings...Yikes.  A

Aug 01, 2016 11:00 AM #4
Rainmaker
2,869,394
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Cody, I supported it as well via CAR and NAR.  Change is needed.  Now I'd like to see better oversight of HOA management companies ... 

Aug 02, 2016 04:43 AM #5
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3,985,028
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This was a good bill that passed and took way too long to get it through the channels.

Aug 02, 2016 11:52 AM #6
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Patricia Kennedy
Redfin - Washington, DC
Home in the Capital

Cody, I'm happy to hear about the FHA changes.  This is more than I learned in my recent Legislative Update required CE course. 

Aug 02, 2016 12:13 PM #7
Rainmaker
5,771,284
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for this update. Have a most productive August.

Aug 02, 2016 10:42 PM #8
Rainmaker
1,523,810
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Thanks for sharing that good news with us Cody Carmen, I appreciate the update.

Aug 03, 2016 09:00 AM #9
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Cody Carmen

Market Analysis--Educational Content, Adhi Schools
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