New HUD Notices and Federal Register Notices
01.19.12

HUD Notices

* HUD Notice H 2011-35 “Hub and National Loan Committees” (December 29, 2011)

The notice extends and revises Loan Committee Housing Notices H 2010-13 and H 2011-04, and all previous administrative guidance regarding Loan Committee policy and procedures. It also incorporates best practices based on operational experience and addresses questions which have been raised. The purpose of a Loan Committee approval structure is to align the Hub and Program Center loan review processes with management of credit risks, and to ensure the integrity and stability of the FHA Insurance Fund. Credit risk management, as implemented through a Hub and National Loan Committee approval process, provides a method to ensure oversight of Hub and Program Center commitment and credit authority, and consistency in underwriting throughout the nation, while providing a platform to share best practices.

The notice may be accessed here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-35hsgn.pdf

* HUD Notice H 2011-36 “Large Loan Risk Mitigation Policies” (December 29, 2011)

The notice addresses the increased risks to the insurance fund presented by loans above $25 million (M) in size and/or which support projects in excess of 150 housing units, or by loans and projects sized at certain higher thresholds, depending on the insurance program. The notice also spells out underwriting standards that will be applicable to such loans in regards to Debt Service Coverage Ratio (DSCR), Loan to Cost Ratio (LTCR), Loan to Value Ratio (LTVR), funding for Initial Operating Deficit (IOD) and Debt Service Reserve (DSR), in addition to other underwriting and credit requirements for such loans.

The notice may be accessed here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-36hsgn.pdf

Federal Register Notices

* HUD Federal Register Notice “Notice of Submission of Proposed Information Collection to OMB; Inspector Candidate Assessment Questionnaire” (December 23, 2011, Docket No. FR-5480-N-123)

HUD has submitted a proposed REAC Inspector questionnaire to the Office of Management and Budget for approval. The form is a questionnaire that provides PIH-REAC with basic background information about the individual’s inspection skills and abilities. NAHMA is trying to obtain a copy of this document from HUD in order to review it.

A copy of the notice may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-12-23/pdf/2011-32950.pdf

* HUD Federal Register Notice “Notice of Submission of Proposed Information Collection to OMB; Limited English Proficiency Initiative (LEPI) Program” (December 29, 2011, Docket No. FR-5480-N-124)

These documents provide additional information to help HUD select grantees and provide additional monitoring and oversight tools for the program.

A copy of the notice may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-12-29/pdf/2011-33408.pdf

Copies of the reporting documents may be found here: http://www.reginfo.gov/public/do/PRAICList?ref_nbr=201112-2529-001

Thank you and I hope you are enjoying the start of your new year.