HUD released the new MAP (Multifamily Accelerated Processing) Guide, which will take effect on May 28, 2016, and applies to all loans for which an initial application for Firm Commitment is submitted on or after the effective date.
Loans where the Firm Commitment application was submitted before the effective date of May 28, 2016, are subject to the provisions of the MAP Guide published in 2011; however, HUD will accept lender requests to revise Firm Commitment applications already in processing to reflect provisions of the revised Guide that are appropriate for a particular transaction. Similarly, Multifamily Regional Center and Hub Directors may consider requests to amend Firm Commitments already issued but not yet closed; such requests may or may not be approved depending on the specific transaction terms.
Explanation of Changes
A draft of the new MAP Guide was published in February 2015, and a series of conference calls was held to obtain public and industry feedback on the proposed MAP Guide revisions. HUD received over 4,000 comments. The most significant issues have been addressed and HUD’s response is summarized in this explanatory matrix. HUD will continue to consider edits and corrections in a future version.
The updated MAP Guide has been under revision since February 2015, and Love Funding has been heavily involved in providing feedback on the proposed changes. Some of the most significant changes include:
- The ability to provide more loan dollars for qualified properties due to less stringent coverage requirements and higher underwritten LTVs
- The ability to include more repairs in your mortgage under section 223(f) due to an increase in the maximum per unit cost of rehabilitation allowed
- More updates to come