In a storyline only 2020 could deliver, as the nation slogs its way through a pandemic and economic recession, home sales have increased by 25% according to the National Association of Realtors, and mortgage lending has jumped 33% according to the Mortgage Bankers Association. Now, changes to federal mortgage rules are in the works.

Community association boards and community managers have been working overtime to keep communities safe and open during the pandemic, and now they are facing heightened demands to turn around lender questionnaires, estoppel letters, and new homeowner packets.

But wait, there’s more! CAI’s Government and Public Affairs team is tracking changes to federal mortgage rules that impact community associations. Within the past month, CAI filed comment letters with the U.S. Department of Housing and Urban Development’s Federal Housing Administration office and the Consumer Financial Protection Bureau. A brief summary of the letters and links to CAI’s responses are below.

  1. CAI supports proposed changes to FHA condominium approval forms to reduce constant lender questionnaires and to limit association liability when providing information necessary to complete FHA forms.
  2. CAI urges FHA to partner with associations to help borrowers keep their homes when possible or make a graceful exit if necessary.
  3. CFPB is eliminating a mortgage safety regulation that verifies consumers can afford monthly payments like association assessments before qualifying for a mortgage. CAI responded to the CFPB, urging that a borrower’s ability to pay association assessments remains a factor in mortgage lending.

For more on government actions affecting community associations, visit

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