Harvey Realty, Inc.

Effective immediately, if a project has been previously FHA approved, the lender must certify that it has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent.

Lender to Obtain a completed HOA Questionnaire to determine that the project is still in compliance with the following:

· Investor ownership: No more than 10% of the units may be owned by one investor.

· HOA Dues: No more than 15% of the total units be in arrears (no more than 30 days past due.)

· Owner Occupancy Rate: At least 50% must be owner occupied.

· FHA loan Concentration Rate: No more than 50% concentration level (for cases assigned through December 31, 2010). See the concentration level when you pull the FHA Approved Condo list.

· No Pending special assessments.

· No Pending legal action against the condominium association, or its officers.

Obtain a “walls in” coverage policy (HO-6 policy) if the master policy does not include interior unit coverage.