The Federal Housing Administration has delayed for a second time the effective date of new rules to tighten its condominium lending policies. The effective date is now Dec. 7, the agency said in a new notice. Until the new guidance takes effect, FHA said, "lenders may continue to use the Spot Loan Approval guidance issued on Mortgagee Letter 2009-19." The new FHA condo rules that were originally slated to go into effect Oct. 1 would have eliminated "Spot Loan Approval" that allows lenders to finance one condominium sale in a building that is not FHA approved. FHA subsequently delayed the effective date of the condo rules until Nov. 2 to make several modifications.
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