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Mortgagee Letter Authorizing FHA Approved Lenders Delegation over the Non-Critical Repair

Mortgagee Letter 2013-13, Lender Delegation of Non-Critical Repair Administration, is now available on the NAHMA website.  This Mortgagee Letter (ML) authorizes delegation of the non-critical repair escrow administration to Federal Housing Administration (FHA) approved Multifamily Lenders and Servicers who voluntarily agree to administer the escrow process within the Section 223(f) and 223(a)(7) program underwriting guidelines.

This authority applies only to FHA Multifamily Accelerated Processing (MAP) transactions originated under Sections 223(f) and 223(a)(7). Delegation of this task will eliminate the need for HUD approval for each disbursement release and is intended to expedite the non-critical repair escrow release process while maintaining management controls necessary to ensure the repairs are completed in accordance with the terms of the FHA Firm Commitment.

The mortgagee letter may be found on the NAHMA HUD page, under the FHA Multifamily Mortgages section. Please follow this link to view the letter directly.

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