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HUD Update: HUD Issues final rule on Section 542(c) HFA Risk Sharing Program; Enterprise Income Verification (EIV) System Data Issue Corrected

30 December 2020
 December 30, 2020
Category HUD News, News

HUD’s Office of Multifamily Housing issued a final rule for the Section 542(c) Housing Finance Agency Risk Sharing Program. This final rule amends the program’s existing regulations, to better align with the policies of other HUD programs, reflect current industry and HUD practices, and conform to statutory amendments. Additionally, this rule provides HUD with greater flexibility to operate the Section 542(c) HFA Risk Sharing program more efficiently and provides HFAs which accept a greater share of the risk of loss on mortgages insured under the program with expanded program delegation. This rule also updates outdated references and terminology and clarifies other provisions. Please note that the final rule is effective January 21, 2021.

The final rule for Section 542(c) Housing Finance Agency Risk Sharing Program is attached and can be found here.

Additionally, HUD has announced that the Enterprise Income Verification (EIV) System IV system’s complications have been identified and are corrected. As of December 21, 2020, EIV’s data has been restored and is ready for use in accordance with Chapter 9 of HUD Handbook 4350.3.  The Multifamily Help Desk is available for assistance by email at MF_EIV@hud.gov or by phone at 800-767-7588 or 888-297-8689 option five.

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