HUD Withdraws Farm Credit Mortgage Insurance Plan

Law360, New York (February 14, 2012, 6:54 PM EST) -- The U.S. Department of Housing and Urban Development on Monday withdrew its proposal for Farm Credit System lending institutions to be eligible for Federal Housing Administration mortgage insurance programs after receiving discouraging public comments about the initiative.

The proposed rule, announced in August, would have extended the eligibility of FHA mortgagees and lenders to incorporate Farm Credit System, a federally chartered network of borrower-owned lending institutions composed of cooperatives and related service organizations.

The goal of the rule was to provide more opportunities for mortgage financing...
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