Federal Housing Administration’s (FHA) Commissioner David Stevens recently announced plans to implement a series of changes to the multifamily insurance programs that will update underwriting policies, increase lender and underwriter quality, and align loan application, submission and approval standards. The policy changes were announced in Mortgage Letter 2010-21 and will affect all multifamily rental programs. The changes include:
- Revised underwriting standards;
- Enhanced verification of property financial performance;
- Expanded borrower mortgage credit analysis; and
- Pre-screening of proposals.
In addition to the changes outlined in the mortgagee letter, FHA’s multifamily programs will be pursuing additional steps to update agency standards and align the programs with the Obama Administration’s broader goals for financial oversight. Read More…
