HUD Lays Out Priorities to Address Shutdown Backlog
From NAHB NOW
On Feb. 1, HUD released two memos on multifamily production and asset management that lay out the prioritization and timetables for addressing the backlog of activities caused by the government shutdown.
Regarding resumption of multifamily production activities, HUD announced it will do its best to continue to process and close loans as quickly as possible. However, lenders, borrowers and other affected program participants will likely experience longer than normal application processing times.
HUD’s first priority will be to identify and prioritize work on loans that were ready to go to closing prior to Dec. 21, the day the shutdown occurred. Loans with critical external deadlines such as Low Income Housing Tax Credits, rate lock extension fees, and purchase sale agreements with substantial penalties will take precedence, followed by other loans ready to close.