The PATH Act awaits a vote on the House floor. But Hensarlings measure is widely viewed as a non-starter in comparison to the Senates bipartisan Corker-Warner bill.
According to a new letter obtained by Inside Mortgage Finance, HUD says it is uncertain whether any new loan created under the controversial eminent domain plan would qualify for FHA insurance.
The guidance, effective October 15, applies to manually underwritten FHA loans and requires lenders to document reasons for approving a mortgage when the borrower has collection accounts or judgments.