According to the Arizona Daily Star, the tough new Federal Housing Authority (FHA) loan restrictions that could have negatively affected one third of mortgage applications have been lifted to be replaced with a more lenient policy. Scheduled to have taken effect July 1, 1012, the original plan would have required borrowers with $1,000 or more collections or disputed unpaid bills to either resolve or make arrangements for payment before FHA financing could be approved. Disputed bills are not that unusual, but an open collection account may indicate nonpayment over an extended period of time, and therefore more of a risk. MHProNews.com has learned the new rule, not yet issued, will separate borrowers’ disputed bills from collection accounts rather than lumping them together.
(Image credit: Federal Housing Administration)