In the December 14, 2018, issue of the Federal Register (83 FR 64269, click here) HUD published a final rule (“Rule”), effective March 14, 2019, that removes the regulations in 24 CFR 203.18 and 203.200–209 that require borrowers to purchase 10-year home warranty protection plans in order to qualify for FHA mortgage insurance for high loan-to-value mortgages where the dwelling was not approved for guaranty, insurance, or a direct loan before the beginning of construction and where the dwelling is less than one year old.
Full Memorandum
