New FHA Mortgagee Letter: October 8, 2009
MORTGAGEE LETTER 2009-38
TO: ALL APPROVED MORTGAGEES, ALL HUD-APPROVED NONPROFIT ORGANIZATIONS
SUBJECT: Update on Eligibility Requirements for Nonprofit Instrumentalities of Government Seeking Placement on the Federal Housing Administration Nonprofit Organization Roster as Providers of Secondary Financing
The Department of Housing and Urban Development is expanding eligibility requirements for nonprofit instrumentalities of government to include entities the income of which is excluded from Federal taxation under § 115 of the Internal Revenue Code of 1986 (IRC). These nonprofit instrumentalities of government will be able to be approved by the Federal Housing Administration (FHA) for placement on the FHA Nonprofit Organization Roster (Roster) and to participate in single-family housing programs as providers of secondary financing. With this expansion, FHA anticipates eliminating a barrier to participation in FHA programs by nonprofit instrumentalities of government subject to the income exclusion under IRC § 115, thereby increasing affordable homeownership opportunities for low- to moderate-income Americans… To read this mortgagee letter and any attachments in their entirety, please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-38ml.doc