HUD Issues Updated Guidance on FHA Workout Related Multifamily Transactions
Revisions to the Asset Management and Project Servicing Handbook 4350.1, REV-1, Chapter 14, which provides guidance on FHA workout related multifamily transactions, were published in September 2012.
Chapter 14 provides guidance regarding 3 types of FHA workout related multifamily transactions:
- Partial Payments of Claims used to avert a full claim when an FHA-insured, loan generally involving a market-rate multifamily project goes into default due to circumstances determined to be beyond the Owner’s control.
- Restructuring of HUD-Held Loans formerly FHA-insured first mortgages that have been acquired by HUD in the course of an assignment for full insurance benefits.
- Modifications of defaulted FHA-insured loans to accommodate refinancing.
2012-09-25