You can visualize it as a gigantic freight train that was headed to real estate leveling off and thus returning us to a normal market. However, that train is doing it's adjustments with it's load in order to prepare to stop.
FHA was a primary financier of Condominium and Town-home complexes. Due to the Home Owners Associations not being "solvent", which means having enough money in their coffers, FHA is restricting their lending practices.
There are other guidelines that FHA looks at - but that gives you the "primary" idea behind FHA slowing their backing with loans on these property types.
Below is the most recent list from Mike Meena at Augusta Financial with the Santa Clarita Valley Condo's that are still allowing FHA Financing.
Visit our all inclusive Condominium page here - you will see all of the Regular Sales, Foreclosures, Bank Owned and other types of current "for sale" condo's in the Santa Clarita Valley and in the rest of Southern California.