# Prohibition of Property Flipping in HUD's Single Family Mortgage Insurance Programs
> **US Department of Housing and Urban Development** · Final rule. · Published 2003-05-01 · Effective 2003-06-02 · 68 FR 23370
## Document
- **Document number:** 03-10778
- **Category:** hud-fha
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 68 FR 23370
- **CFR reference:** 24 CFR 203
- **Publication date:** 2003-05-01
- **Effective date:** 2003-06-02
- **Docket:** Doc. No. FR-4615-F-02
## Abstract

This final rule addresses property "flipping," the practice whereby a property recently acquired is resold for a considerable profit with an artificially inflated value, often abetted by a lender's collusion with the appraiser. Specifically, the final rule establishes certain new requirements regarding the eligibility of properties to be financed with Federal Housing Administration (FHA) mortgage insurance. The regulatory amendments will comply with Congressional mandates to maintain the FHA Insurance Fund in a sound actuarial manner. The new requirements will make flipped properties ineligible for FHA-insured mortgage financing, thus precluding FHA home purchasers from becoming victims of predatory flipping activity. The final rule follows publication of a September 5, 2001, proposed rule and takes into consideration the public comments received on the proposed rule.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2003/05/01/03-10778/prohibition-of-property-flipping-in-huds-single-family-mortgage-insurance-programs)
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