Good news from HUD! COVID Escrows Are No More!
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HUD has published Mortgagee Letter (ML) 2022-03 ending all of the temporary COVID-19 escrow requirements imposed in April 2020 by ML 2020-11, which was a response to the potential economic impact of the pandemic. In recent months, it has become clear that most multifamily markets have weathered the storm, and many are stronger now than before the pandemic began. HUD has reevaluated the escrow requirements and concluded that they are no longer necessary. Loans that already closed with the escrows in place will continue to follow the prior policy.
Lopa Kolluri, Principal Deputy Assistant Secretary for the Office of Housing and FHA, said “Mortgages in FHA’s Multifamily insurance portfolio experienced fewer challenges than expected. Because of this, we are in a position to unleash multifamily development capital by lifting these underwriting safeguards.”
This is great news for borrowers and we thank HUD for taking this action.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $9 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
