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It has been a busy couple of weeks for HUD, and we wanted to share with you some recent changes that will impact how we underwrite your loans. The most significant changes include:
- Lower MIP rates for qualified affordable and energy efficient properties
- The issuance of the new MAP Guide on January 29
This newly published information will provide savings for many qualified properties. We've included an overview below, and please contact your Love Funding originator to learn more.
Reduced MIP Fees For Qualified Properties
For commitments issued or reissued beginning April 1, 2016, many transactions will now qualify for lower MIP rates. Additionally, HUD Deputy Director Dan Sullivan advised that if a loan is in processing (i.e. the loan did not and will not close before April 1), lenders may submit amended Firm Commitment Applications reflecting the new MIP if the lender anticipates closing the loan on or after April 1 and the property and financing terms meet relevant requirements. Continue reading
New Guide for Multifamily Accelerated Processing
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 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. Continue reading