FHA’s plans to fully implement Lean processing to all Section 232 Insured Loan activities continues to move forward: on January 1, 2009, applications for new construction and/or substantial rehabilitation transactions can be filed under Lean at the Lender’s option; by March 1, 2009 all such applications will have to be filed under Lean.

Also effective on January 1, Lean processing will be available at the Lender’s option for FHA’s “second tier” mortgage insurance programs for existing Section 232 insured projects: Section 241 Supplemental Loans, Section 223(a)(7) Refinance Loans and Section 223(d) Operating Loss Loans. After March 1, applications under these programs must be filed under Lean.

On December 17 and 18, our Lean approved Section 232 underwriters – Anthony Luzzi and Kerrie Tomasiewicz – will be returning to Seattle to attend special training with FHA staff on the new programs. Stay tuned to our website for future updates on Lean processing. We also will be updating our Financing Programs page to include a new term sheet on Section 223(d) Operating Loss Loans. This is a little used but effective program to re-capitalize projects that have incurred deficits in the course of sustaining occupancy.