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The FHA issued several press releases about contaminated drywall products imported from China which may have been used to construct homes later purchased with FHA insured home loans.

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News and Updates for Homeowners

FHA Loans: Chinese Drywall Update

September 30, 2011 - Earlier in 2011 there was news of a study related to contaminated drywall imported from China; the FHA issued several press releases about contaminated drywall products which may have been used to construct homes later purchased with FHA insured home loans.

In 2010, the U.S. Consumer Product Safety Commission identified a group of manufacturers who sold or distributed drywall that emitted "high levels of hydrogen sulfide" based on testing conducted by Lawrence Berkeley National Laboratory (LBNL).

According to one press release, "There is a strong association between hydrogen sulfide and metal corrosion" where these products were installed.

The FHA published remediation guidelines, and a study was begun by the U.S. Consumer Product Safety Commission (CPSC). Now, the final wok on the CPSC study has been announced, and the CPSC and the U.S. Department of Housing and Urban Development have issued updated remediation guidance.

For anyone who purchased a house with an FHA insured mortgage and has experienced problems with contaminated drywall (as mentioned by the study) HUD and the CPSC recommend the following measures:


  • replacement of all problem drywall
  • replacement of smoke and carbon monoxide alarms
  • replacement of electrical distribution components,including receptacles, switches and circuit breakers, (but not necessarily wiring)
  • replacement of fusible-type fire sprinkler heads
With regard to wiring, a previous CPSC study simulated forty years' worth of "corrosive conditions that could exist in problem drywall homes." concluding there is no safety issue connected to problem drywall as it may affect the wiring itself.

There have been nearly four thousand reports from home owners in 42 states "who believe their health symptoms or the corrosion of certain metal components in their homes are related to problem drywall." according to a Department of Housing and Urban Development press release. CPSC reports there may be more than 6,000 U.S. homes with problem drywall.

> More information on the Chinese drywall issue.

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