NAHMA recently received the following memo and message from Ben Metcalf, the Deputy Assistant Secretary of the Office of Multifamily Housing, which provides policy clarifications for Interest Rate Reductions (IRR).
Please click here to view this memo.
Attached please find a memorandum regarding Clarifications of Policy Surrounding Interest Rate Reductions (IRRs). Due to historically low interest rates, HUD has seen a significant increase in the number of mortgagors requesting a reduction in their mortgage loans existing interest rate whose mortgage loans are not in default.
The increase in IRR requests has resulted in some questions as to how the IRR process interacts with other policies and actions take on certain mortgages, particularly those under the Section 202 and 223(f) programs. The purpose of this memo is to address stakeholder feedback and to further clarify Multifamily Housings procedures for the treatment of debt service savings as a result of IRRs in certain circumstances.