- HUD Issues New Forms for Multi-Family Mortgage Loans
- September 23, 2011 | Author: Searle E. Mitnick
- Law Firm: Gordon Feinblatt LLC - Baltimore Office
The U.S. Department of Housing and Urban Development (HUD) has published revised loan documents for FHA-insured multifamily mortgage loans, including a new form of legal opinion letter from borrower's counsel. These new forms and application of revised regulations corresponding to the updated closing documents are required for all FHA-insured loans (other than loans for healthcare facilities) for which HUD issues a firm commitment for mortgage insurance on or after September 1, 2011. These replace the HUD loan forms issued in 2003. See 76 FR 24507 - HUD Multifamily Rental Project Closing Documents: Notice Announcing Final Approved Documents and Assignment of OMB Control Number, or Federal Register Volume 76, Issue 84 (May 2, 2011).
On January 21, 2010 (75 FR 3544), HUD published for public comment a notice advising that HUD was updating and revising a set of closing documents used in Federal Housing Administration (FHA) multifamily rental projects. This 60-day notice period started anew the process for updating the multifamily rental project closing documents, a process that had begun on August 2, 2004. On December 22, 2010 (75 FR 80517), HUD published a 30-day notice to complete the public comment process. HUD provided a detailed summary of the comments and HUD's responses to these comments in the January 21, 2010 notice accompanying the documents which were open for 60 days of comment.
Opinion practice in private sector transactions throughout the country has evolved significantly since 2003 when HUD issued its current approved form of borrower’s counsel opinion (which is called “Guide for Opinion of Borrower’s Counsel”). HUD has modified its form of legal opinion to reflect some changes in opinion practice, but it has also retained many of the features that historically have been a source of concern for borrower's counsel.