Proposed FHA Underwriting Changes Raise Concerns
NAHB First Vice Chairman Bob Nielsen along with multifamily members met on March 22 with Carol Galante, HUD's deputy assistant secretary for multifamily housing, and her senior advisor, Chris Tawa, to discuss proposed changes to underwriting requirements for FHA multifamily loans.
HUD has proposed an extensive set of changes to the Section 221(d)(4) and Section 223(f) programs, which are used by builders for new construction/substantial rehabilitation and refinancing of multifamily properties, respectively.
At a time when the FHA is virtually the only source of construction financing for multifamily rental properties, some of the proposed changes are of great concern to NAHB members because they could make it more difficult to obtain FHA financing.
Both Galante and Tawa indicated that they would consider a number of suggestions presented by the NAHB delegation, pointing out that some of these involved issues that had not previously been brought to their attention. They also made it clear that their intention is to protect, maintain and sustain the multifamily mortgage insurance programs.
Going forward, NAHB staff members will be following up with HUD and working with association members and the agency as the proposed changes progress.
For more information, e-mail Claudia Kedda at NAHB, or call her at 800-368-5242 x8352.