WASHINGTON - The Department of Housing and Urban Development has proposed a rule to discourage property "flipping" - fast-turnaround sales at artificially inflated prices to unsuspecting buyers.
HUD said flipping was "often abetted by a lender's collusion with an appraiser."
The agency proposed in Wednesday's Federal Register that FHA financing be generally denied for a purchase from a seller who has owned a property less than six months or is not its owner of record. An exception could be made if the price were shown to correspond to market value.
HUD is accepting comments until Nov. 5.