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FHA issues final multifamily loan closing documents.

After a two-year process involving two rounds of comments by industry stakeholders, HUD published new closing documents and regulatory revisions on May 2 for the Federal Housing Administration (FHA) Multifamily Insured Loan Program (76 FR 24363). The new documents must be used for mortgages that receive a firm commitment from HUD on or after Sept. 1, 2011. (Borrowers can request to use the older closing documents after Sept. 1 if the FHA Commissioner agrees that using the new ones would cause financial hardship.)

The revised closing documents reflect extensive changes. Among the many changes, some key modifications include: expanding the definition of an eligible borrower to allow a non-single-asset entity in certain conditions, requiring additional borrower liability and creating a two-tiered default structure. Member firms that use FHA financing are encouraged to review the revised documents. Firms with applications under consideration by FHA should consult with their legal counsel. See www.hud.gov/offices/adm/hudclips/.
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Title Annotation:Accounting
Publication:Units
Date:Jun 1, 2011
Words:156
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