The Federal Housing Administration (FHA) announced that it is removing temporary COVID-19 underwriting mitigants for multifamily transactions insured under Section 223(f) of the National Housing Act effective immediately for all insured transactions that have yet to reach endorsement. The temporary requirements for nine months of debt service reserves, 250 percent repair escrows and limits on cash-out refinance transactions were originally put in place in April 2020 to counter-balance potential financial effects resulting from the COVID-19 pandemic. This change allows lenders to return to using standard Multifamily Accelerated Processing (MAP) Guide policies going forward.
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