FHA to modify rules on seller concessions

Later this summer, the Federal Housing Administration will cut maximum
seller concessions from 6 percent of the home price to 3 percent.
Seller concession rules give buyers the opportunity to ask the seller
to pay for several services and taxes associated with the deal, like
loan origination fees, appraisals and closing costs. Under traditional
Fannie Mae or Freddie Mac financing, seller concessions are limited to
3 percent, meaning the choice has generally been a quick one for
buyers.  FHA officials say the policy change is a result of excess risk
exposure by creating incentives that, they say, inflates the appraised
value of the home — this occurs when the concessions are factored into
the price, making it higher than the appraised value. [Sun Sentinel]