MBA Statement on FHA’s Removal of Temporary COVID-19 Underwriting Guidelines for Multifamily Transactions
SAN DIEGO (February 14, 2022) - Robert Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), released the following statement regarding the Federal Housing Administration's (FHA) announcement at the 2022 Commercial/Multifamily Finance Convention and Expo that they are removing temporary COVID-19 underwriting mitigants for multifamily transactions insured under Section 223(f) of the National Housing Act:
"MBA commends FHA for its stewardship navigating the economic downturn and subsequent recovery during the COVID-19 pandemic. With FHA's Multifamily insurance portfolio showing so much resiliency, MBA agrees that now is the time to remove the temporary underwriting safeguards put in place in April 2020. The return to the standard requirements for reserves, escrows, and cash-out refinance transactions will make even more capital available for affordable rental housing in communities across the country.
"Through the Home for All Pledge, MBA members are making a long-term commitment to affordable rental housing. We look forward to our continued work with FHA leadership to find solutions that increase housing supply and improve affordability and stability in the rental market."