11.3.3 Underwriting Recommendation

HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021) · 2026 edition · updated 2026-10-05 · United States

A. The memorandum recommending loan approval will be in the standard loan committee report or alternative format, and specifically address:

The adequacy of the initial operating deficit for any new construction or substantial rehabilitation loans.
The adequacy of the working capital escrow and construction contingency for any new construction or substantial rehabilitation loans.
The adequacy of the initial deposit and ongoing payments to the reserve for replacement.
A description of any non-critical repairs to be performed after closing for Section 223(f) loans.
In a tax credit transaction, the schedule of the equity contribution at closing and remainder during various stages of the construction period.
The architectural drawings and specifications.
Any environmental conditions or other concerns.

B. Back-up documentation necessary to prepare and issue the Firm Commitment must be attached or available, including Previous Participation Certification from APPS, the technical staff reviews, the Lender narrative summary, the Lender’s technical reviews, form HUD-92264 and form HUD-92264-A signed by the HUD reviewers and Team Leader. Where the HUD Underwriter has rejected a conclusion by a technical reviewer or has modified any technical recommendation by the Lender or HUD reviewer, documentation and justification must be included in the memorandum.

C. HUD’s review appraisers have the option to modify appraisal conclusions internally or to return the application to the Lender for revision of the appraisal. Should the HUD review appraiser choose to modify the appraised value, rent or expense conclusions internally, as per USPAP Standard 3, this opinion

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becomes its own appraisal whether it concurs with the opinion of value in the work under review or differs from the opinion of value.

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HUD Multifamily Accelerated Processing (MAP) Guide, HUD Handbook 4430.G (2020 ed., rev. Mar. 19, 2021)

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