A Federal Housing Administration rule meant to speed up the housing recovery expires today.
The policy, which went into effect in 2010, allowed home flippers to use FHA loans to buy properties, according to a December memo from the U.S. Department of Housing and Urban Development.
The National Association of Realtors lobbied for the program’s continuance and said it encouraged investors to renovate foreclosed and abandoned homes, the Palm Beach Post reported. However, a lack of oversight and monitoring of lenders was reported in a September inspector general report. [Palm Beach Post] — Katherine Kallergis