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HUD/OH RIN: 2502-AJ72 Publication ID: Fall 2023 
Title: ●Multifamily Loan Disbursements   (FR-6423) 

This proposed rule would update HUD’s regulation in 24 CFR 200.54 to allow mortgage proceeds resulting from the initial issuance of a mortgage-backed security guaranteed by the Government National Mortgage Association (Ginnie Mae) to be disbursed immediately in a limited amount for projects insured under National Housing Act when the required Borrower equity exceeds the amount of the initial closing construction draw. Many times, the amount of Borrower equity exceeds the amount required at initial closing for the first draw, which presents a timing challenge because disbursing the equity as construction activity occurs will take up to two months and mortgage draw activity must be postponed. A latent conflict exists for a very short period of time when a mortgage lender pools a loan into a mortgage-backed security. The proposed rule will resolve this conflict and provide necessary flexibility for the FHA program.  

Agency: Department of Housing and Urban Development(HUD)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 200.54   
Legal Authority: 12 U.S.C. 1702–1715z–21    42 U.S.C. 3535(d)   
Legal Deadline:  None
Action Date FR Cite
NPRM  01/00/2024 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Willie Fobbs
Director, Office of Multifamily Production
Department of Housing and Urban Development
Office of Housing
451 7th Street SW,
Washington, DC 20410
Phone:202 402-6257