In a release earlier today CAI alerted our industry to the Federal Housing Finance Authority’s position expressing concern about state statutes, such as our super lien statute, that allow community associations to obtain lien priority over first mortgages for unpaid association assessments. FHFA has asked a federal court to intervene to help mortgage companies at the expense of community associations. You can read FHFA’s statement and CAI’s statement.  We will monitor FHFA’s lawsuit and keep you advised of how the Nevada court handles it.

2 responses to “FHFA Moves Threatens Community Associations
  1. The vast majority of persons who purchase condos, unless they pay cash, must rely on FHA-insured loans through the FHFA. Since 2010, I have felt that FHA and FHFA have been trying to “kill” the condo form of home ownership, and this action will certainly put it on life support if is successful. FHFA claims a statutory obligation to protect the interests of taxpayers. But are the owners in CICs not taxpayers? And are they not the ones who suffer when a unit is foreclosed, in addition to having already subsidized the delinquent owners by having to make up the shortage in assessment collection? The delinquent owners received most of the services provided by the generosity of the rest of the owners who did pay their fair share. As I understand it, is not the purpose of the Super Lien to assist the association of owners in recouping some of this loss? What is FHA’s role or position in this?
  2. When I bought in here FHA wouldn’t touch my loan even though I had a credit rating of 809. The only reason was because two of our owners own two units apiece and use them as income investments and rent them out. I had to go through an owner carry and so far it’s been good. But I do pay high HOA costs to keep this place well groomed and maintained on the outside not to mention snow services and gardening tasks this all pays for we all enjoy! It would not be fare for the rest of us to be forced to absorb the extra costs of another homeowner that fails to keep up his or her responsibilities and we’re not insured as individuals to take such a loss where Mortgage companies certainly are!
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