FHA Meeting Held 

NAA/NMHC continue to work with the U.S. Department of Housing and Urban Development (HUD) to address serious delays in processing new and existing FHA multifamily mortgage applications. NAA/NMHC met with HUD Deputy Assistant Secretary Carol Galante in early March as a follow-up to our January meeting with HUD’s Secretary Shaun Donovan.

HUD admits to ongoing capacity issues and says that delays will continue in the
short term. However, the Department is committed to better pipeline management through, among other things, reallocating personnel. They also agree to keep borrowers better informed of processing timeframes for their specific applications.

Perhaps most significantly, HUD concedes that it must allow borrowers to withdraw their applications and refund borrower application fees and deposits when it fails to act. HUD provided guidance to its field offices in early March with details about the circumstances under which those full or partial refunds will be provided.

Galante confirmed that despite industry protests, HUD will continue to require central loan committee review of any loan that exceeds $15 million and/or 150 units.

Improvements are likely to be incremental, and NAA/NMHC will continue to work on this issue. Improving debt markets may also create alternatives to FHA for construction and mortgage capital.

Was this article helpful to you?

Current Rating	0%