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HUD Temporarily Suspends Issuance of FHA Mortgage Insurance

Wednesday, September 17, 2003 - 1:45AM

Effective yesterday, the U.S. Department of Housing and Urban Development (HUD) temporarily suspended the issuance of all Federal Housing Administration (FHA) multifamily and health care mortgage insurance because HUD determined its commitment authority may be exhausted prior to the end of the fiscal year. The action was announced in Mortgagee Letter 2003-13, issued September 13.  The suspension will remain in effect until Congress enacts either supplemental commitment authority for fiscal year 2003 or new commitment authority for fiscal year 2004. The 2004 fiscal year begins October 1, 2003. In the meantime, HUD will continue to issue conditional commitments, site appraisal and marketing analysis (SAMA) letters, and multifamily accelerated processing (MAP) invitation letters and to initially and finally endorse mortgages with firm commitments issued before September 16. Click here for a copy of Mortgagee Letter 2003-13.

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