Office of the Assistant Secretary for Housing-Federal Housing Commissioner; Mortgage Insurance on Condominium Units in Non-FHA Approved Projects

This rule adds provisions to the regulations governing Federal Housing Administration (FHA) mortgage insurance on condominium units to permit insurance of mortgages on individual units in condominium projects that have not received FHA approval in advance. These ``spot loans'' will be approved under less stringent requirements than the existing requirements for mortgage insurance for condominiums, but mortgages on these units are required to satisfy standards that assure that the risk involved for FHA is reasonable. The final rule does make one change from the proposed rule in response to public comment--to increase, for small projects, the percentage of units that may be approved for FHA mortgage insurance.