At the end of December, the FHA issued new rules regarding which loans need to go through regional and national loan committees—a time-consuming process which has gummed up the agency’s bottlenecked pipeline.
In the past, market-rate construction/rehabilitation loans of at least $15 million, or any deal of more than 150 units, had to go through the FHA’s National Loan Committee. That threshold has been dialed up to $25 million, or 250 units. What’s more, any existing FHA-insured loan looking to refinance through the Sec. 223(a)(7) program no longer needs to go through either the regional or the national loan committee.
“It’s a huge help,” says Jonathan Camps, managing director of production for Washington, D.C.-based Love Funding. “You have this huge slew of deals that all of a sudden don’t need to do it, and we’ve already seen processing speed up quite a bit. It’s had a real trickle-down effect.”
The above includes excerpts from “FHA Streamlines Approvals, While Toughening Up on Large Loans” by Jerry Ascierto. Read the full article on Multifamily Executive.
Reprinted with permission from Multifamily Executive, a publication of Hanley Wood © March 2012