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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
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Title Annotation:Accounting
Date:Jun 1, 2011
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