FHA Suspends Anti-Flipping Rule to Move REO Inventory, OIG Concerned About Fraud
May 27, 2010
The FHA temporarily waived its rule preventing rapid resale of homes financed with FHA loans, but a government watchdog expressed concern that the change will open new opportunities for fraud. The Department of Urban Development published a rule in the May 21 Federal Register stating that sales made on or after Feb. 1 this year may be exempt from the FHA’s existing “anti-flipping"...