I want to call your attention to the part of your business in which you sell or list condominiums. The Federal Housing Administration and HUD have extended the existing approvals on Condo’s and the current spot approval process until February 15, 2010. After this date we will no longer be able to get spot approvals and the approvals which currently exist will expire.

The new regulation provides two ways in which an existing condo project can get approved. Both are supposed to be “streamlined”. The first is that any direct endorsed lender which the staff and the knowledge can get the project approved themselves. We have been advised by almost everyone that they will not accept the responsibility, expense or possible liability of undertaking the condo approval process. The implication we are getting is that if a condominium community wants to maintain its marketability it will be up to them to get themselves approved. This brings me to the second way of obtaining project approval which is to go directly through HUD.

I would strongly suggest that if there are any projects that you farm to that you speak to the Management Companies or to the Associations to call this information to their attention. The quicker action is taken by the associations the less down time they will have in their ability to sell a unit with an FHA loan.

I am also in the process of putting together the necessary steps that will be required to get a project approved by going directly through HUD

Sincerely,

Mark Silverberg

Allied Home Mortgage Capital Corp.

Branch Manager/Mortgage Banker

732-390-4800 ext 101

732-390-4802 fax

mgr2888@alliedhomenet.com