MBA Applauds HUD Move On Multifamily Underwriting Enhancements
MBA’s President and CEO Bob Broeksmit, CMB, released the following statement on the Department of Housing and Urban Development’s (HUD) announcement of changes to the minimum debt service coverage ratio (DSCR) and maximum loan-to-cost percentage (LTC) levels for Federal Housing Administration (FHA) multifamily loans:
“MBA is leading the industry’s efforts with HUD to make its FHA multifamily lending programs less costly and more competitive, with a goal of increasing the supply of affordable rental housing in communities across the country.
“HUD’s decision to refine FHA underwriting criteria to more appropriate levels should result in an increase in production of much-needed rental housing by tens of thousands of units over the next three years at little to no additional risk to the FHA fund or taxpayers.
“We appreciate HUD’s receptiveness to MBA’s and our members’ advocacy on this issue and look forward to working with the incoming administration, Congress, and other industry stakeholders on additional ways to encourage the development of more affordable rental housing.”
The Place for Lending Visionaries and Thought Leaders. We take you beyond the latest news and trends to help you grow your lending business.
