Many people have asked “What does the HUD multifamily reorganization mean and how will it affect processing?”. We believe that this reorganization was needed and will help improve processing times by streamlining and identifying deals that need to go to specific HUD staff experienced in those problems that arise. Workloads can be spread throughout the country to insure maximum use of the assets HUD has available. That said, problems may arise if some staff are moved into positions without training or have bad skill sets. As we know, politics get involved in any large organization whether it’s government agencies or private companies. It is a start and we hope for the best and believe HUD is behind this effort. Now we have to wait and see if the staff gets behind it also. The details of the proposed reorganization are:
1) Workload Sharing
Offices that experience spikes in production or asset management can distribute their workload to offices with available resources.
2) Risk-based Processing and Underwriters in Production
Incoming packages will be screened for complexity and risk and assigned to qualified underwriters who can bring in experts for specific solutions as problems are discovered.
3) Creating Specialist Support in Asset Management
HUD will designate certain qualified staff as “Troubled Asset Specialists” who will work with asset management, owners and managers to work out troubled properties and loans in the portfolio. Other asset management managers will be designated as “Account Executives” who will oversee the non-troubled portfolio.
4) Streamlining the Multifamily Organizational Model
HUD is reorganizing DC Headquarters into four main offices: Production, Asset Management, Recapitalization, and Field Operations.
All present field offices will be consolidated into five regions each with a satellite.
• New York (hub) and Boston;
• Atlanta (hub) and Jacksonville;
• Chicago (hub) and Detroit;
• Fort Worth (hub) and Kansas City;
• San Francisco (hub) and Denver.
The Seattle office will focus on healthcare.
This reorganization will result in faster and more efficient processing as individuals will be responsible for underwriting the mortgage insurance. Should you have any questions as to how this will affect future processing of FHA insured loans for multifamily and health care please call 800-536-3371.