New FHA collections ruleHousingWire...April 5. 2012"A new rule prohibiting homebuyers from getting a Federal Housing Administration mortgage if they owe more than $1,000 in outstanding collections accounts could cut demand by up to 20%, according to banking analysts.The rule went into effect April 1. If a borrower enters into a payment plan on these accounts, then an exemption could be granted. Also, the FHA clarified the rule this week, stating if a borrower documents the collections account stems from a "life event" such as a medical bill, divorce or loss of employment, he or she could still qualify for the loan.""FHA's recent clarification on the rule represents only a modest softening, in our view," said JPMorgan Chase analysts in a note Thursday. "We believe borrowers having outstanding collections in one arena also likely have outstanding collections in other areas.""Chase analysts estimate this rule should negatively impact roughly 10% to 20% of demand for the FHA universe over the next two to three months."Full ArticleApril 05 2012 - US1YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.