The Multifamily Housing Office at the Department of Housing and Urban Development offered clarifications of the policy surrounding its interest rate reductions (IRR). The memorandum addresses how the IRR process interacts with other policies and actions on certain mortgages, particularly those under the Section 202 and 223(f) programs. It also explains Multifamily Housing’s procedures for the treatment of debt service savings as a result of IRRs in certain circumstances.
These clarifications come at a time of historically low interest rates, which have caused an increase in the number of mortgagors, whose mortgage loans are not in default, requesting a reduction in the mortgage loan’s existing interest rate.
Click here to read the memorandum.
