Andrews: HUD's revised MAP guide goes into effect
For those in the apartment business using HUD programs to finance new construction or refinance existing debt, the revised Multifamily Accelerated Processing Guide is being implemented as of today. According to HUD, the revisions are "intended to cut the time required to approve loan applications and to assure consistent application of program requirements and credit standards across all HUD processing offices." The new MAP Guide delegates more underwriting responsibility to approved “MAP lenders” and includes "all relevant guidance published by FHA since the MAP Guide was last updated in 2002." These changes are needed to deal with the immense surge in volume being handled by HUD. By late August of this year, FHA had endorsed nearly 1,100 multifamily loans, more than seven times the number of loans the agency endorsed just three years ago. This explains the significant delays and extended processing times being experienced across the country. Hopefully, the new guidelines will returns processing times to normal levels in 2012.
(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Real Estate Services, and he can be reached at [email protected].)
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