HUD recently published Mortgagee Letter 2009-19, which provides guidelines and instructions on options available to lenders to receive mortgage insurance on condominium units which are located in a project. The lender will be required to retain all the project legal documents, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project. When requested, the lender must provide such documentation to HUD staff for verification of compliance with HUD's regulations. The requirements of ML 09-19 are effective for all case numbers assigned on or after October 1, 2009 except as noted.
