FHA Extends Multifamily Risk-Sharing Initiative through End of 2018

Friday, September 28, 2018 - 1:30pm

The Federal Housing Administration (FHA) today announced that it is extending its multifamily risk-sharing initiative with the Federal Financing Bank for eligible housing finance agencies (HFAs) through the end of 2018, a decision that will likely reduce the cost of FHA-insured multifamily risk-sharing loans. The risk-sharing initiative was originally scheduled to stop accepting new applications from HFAs at the end of September, but will now accept applications through Dec. 31 for commitments up to the program maximum of $3 billion. The risk-sharing initiative started in 2015 to stimulate affordable housing production and involves HFAs entering into contracts with the U.S. Department of Housing and Urban Development in which they share the risk of loss. The FHA announcement said it will review whether the program justifies continued operation beyond the end of the year.